IPL 2022 brand value may slip as viewers switch off from tournament

3-4 per cent drop likely, say experts, as Covid scare and lack of excitement haunt league this year

The brand value of the Indian Premier League (IPL) could take a hit this year, as the T20 tournament grapples with poor television viewership as well as Covid-19 scare. On Tuesday, the Board of Control for Cricket in India (BCCI) announced that it was shifting the venue of the April 20th match between Delhi Capitals and Punjab Kings to Mumbai from Pune after five members of the Delhi Capitals' squad tested positive for Covid-19.

Last year, the IPL was temporarily suspended in May after some players tested positive for Covid-19. This year, there was much hype riding on the cash-rich league, given that it was open to spectators after two years and was being held in India. The 2021 edition concluded in Dubai in September-October after a four-month gap.

N Chandramouli, chief executive officer (CEO), TRA Research, a Mumbai-based brand intelligence and advisory firm, that releases the annual Brand Trust Report, says that he anticipates a drop of about 3-4 per cent in IPL's brand value this year if the viewership trend continues to be weak.

"Viewership drives up advertising, which impacts the overall brand value of a sporting property. If viewership continues to be weak, the IPL brand value could take a hit this year," he says.

For the uninitiated, TV ratings of the IPL this year fell by 34-40 per cent across age-groups in the second week of the tournament versus the same period last year. In the first week, the yearly drop was 32-38 per cent across age-groups, data from the Broadcast Audience Research Council of India (BARC) sourced from the media industry shows.

Ashish Mishra, managing director (MD), Interbrand India, says that the T20 tournament this year has struggled with disruption at various levels.

"Marquee teams (such as Mumbai Indians and Chennai Super Kings) have struggled with performance on the field. Some big stars (such as AB de Villiers, Chris Gayle, Mitchell Starc and Ben Stokes) are missing in action. And the overall composition of the tournament this year has changed with the addition of two new teams. Brand loyalties will take time to be built for these new franchises despite them doing well on the field," he says.

However, Ajimon Francis, MD, Brand Finance India, says that he sees on-ground buzz for the tournament intact despite Covid concerns and a dip in TV viewership. "The Covid scare is a point of concern. But our observation is that on-ground excitement has remained largely unaffected and ticket prices have skyrocketed since there is a cap on seating at venues. I am not pessimistic about the way the tournament is going or its impact on brand value," Francis says.

But some sports marketing executives admit that the IPL's restriction to few cities - Mumbai, Pune and Navi Mumbai - this year in view of the Covid-19 situation has let down fans in other locations. The IPL has typically thrived on its multi-city format which allows home teams to play on their home grounds at least once besides other locations.

The scheduling of matches this year, namely, in the afternoons and evenings (called double-headers), notably on weekends, has also disrupted viewership. The bigger worry for some experts is the impact the current edition may have on upcoming bids for the media rights auction scheduled in June.

The Board of Control for Cricket in India (BCCI) has set nearly Rs 33,000 crore as the combined reserve price for the media rights of the IPL under four packages, ensuring that it will get at least double the amount from the last five-year rights cycle ending in 2022. Disney Star, TV18-Viacom (Sports-18), Amazon, Zee and Sony have already bought the tender documents.