The Indian Premier League (IPL) has seen a 18.87 per cent growth in brand valuation at USD 6.3 billion after its 11th season this year, aided by the hike in broadcasting rights fee, according to Duff & Phelps.
The IPL was valued at USD 5.3 billion in 2017.
Duff & Phelps said that broadcaster Star India, which had bagged the media rights for Rs 16,347.5 crore for a period of five years from 2018-2022, has given a boost to the broadcast rights fees which rose by a CAGR of 18.9 per cent.
"Under the broadcaster, content delivery expanded to various regional channels across its channels with commentary in eight languages than limiting the transmission to sports channels with just English commentary," the global valuation and corporate finance advisor said.
It noted that the broadcaster's decision led to an increased cumulative TV reach of the tournament across the country, with regional channels including Hindi contributing nearly two thirds of IPL's total viewership.
As per TV rating agency Broadcast Audience Research Council India, IPL recorded the highest ever inaugural week television viewership at nearly 300 million, with nearly 30 per cent increase in reach in south India.
Duff & Phelps said that Star India is estimated to have earned Rs 2,000 crore through TV and digital advertisements, compared to the previous broadcaster Sony who had earned a total of Rs 1,300 crore in advertising revenues.
It further said that Star is estimated to have sold over 80 per cent of the advertising slots even before the commencement of the season.
"Star India's broadcasting rights deal was a game changer that put IPL on par with some of the biggest sporting leagues in the world (on a fee per match basis)," said Varun Gupta, managing director, Duff & Phelps and Asia Pacific leader for valuation services.
The change in content consumption, influx of over-the-top (OTT) and digital viewing platforms and increased support from advertisers, broadcasters and sponsors, according to him, have given the IPL greater significance in terms of brand value.
Most teams saw their team sponsorship revenues rise by at least 20 per cent when compared to last year, according to the report.
Mumbai Indians, continued to top the charts for the third season in a row with a brand value of USD 113 million, at a growth of 7 per cent, while Kolkata Knight Riders secured the second place with a brand value of USD 104 million, an increase of 5 per cent over last year.
The two-year ban imposed on Chennai Super Kings (CSK) and Rajasthan Royals has had some bearing on their brand values. However, the Mahendra Singh Dhoni-led CSK that won this year's edition of IPL, were able to to neutralise the negative impact, as they were valued at USD 98 million, alongside Royal Challengers Bangalore.
The 11th edition's runners up, Sunrisers Hyderabad, saw a 25 per cent rise in brand valuation to USD 70 million, from USD 56 million last year. Kings XI Punjab witnessed the most appreciation in brand value with a 27 per cent growth at USD 52 million.
Social media continues to be an important driver of brand value, according to Duff & Phelps, with the first week of the 2018 season witnessing 855,400 mentions across platforms, from 642,900 mentions in the first week of the previous season.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)