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The Indian Premiere League’s valuation is now at $ 10.9 million according to a report released by D and P advisory. The report titled ‘Beyond 22 yards’ is the valuer entity’s ‘first comprehensive valuation study related to the Indian Premiere League (IPL).’
The current financial standing of the IPL has seen a 75% jump from 2020 where its valuation stood at $ 6.2 billion. This jump in its revenue at around 75% makes the franchise a Deacorn. A Deacorn is a business whose value exceeds $ 10.0 billion. And the IPL has achieved this stature wtihin 15 yeras since it first began.
The IPL has bought the glitz to the game of cricket hitherto unseen before. With extravagant opening and closing ceremonies, after-match parties, and roaring fans who have made their corporate-controlled state team a part of their identity, the IPL is almost a ritual that comes once every year.
The IPL ecosystem has a smart business base in a country that is overtly obsessed with the game of cricket. And the owners of the franchise were smart to pitch thier tents in this obsession. And they reaped immense profits from this.
D and P advisory’s, managing partner, Santosh N, on the IPL’s increased appeal and continous growth, points to,’the renewed media rights that was ‘a major contributor towards a substantial jump in value’.
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IPL’s revenue streams
The business entity earns not only from ticket sales, but also- and an enormouse share- from selling broadcasting rights, sponsorships. The sale of merchandise is also counted as a revenue stream.
IPL sells it broadcasting rights to the highest bidder and it is cycling- renewing every five years. And the franchise retains 50% and distributes the rest amongst the concerned parties. Of the 50% distibuted to other franchises, 45% is distributed equally and the reamining 5% is released depending uponthe film’s performance.
The current cycle
The new cycle takes place from 2023-2027 and the total amount raked together from the broadcast auctioning is $6.2 million, almost three times the amount of the previous cycle.
BCCL/Representational
The franchises
The new cycle has challenged the monopoly of Star, which held the broadcasting rights.
The other platforms eyeing the rights on June 12 this year when they were e-auctioned were: Disney+Hotstar, Reliance Viacom Sport 18, Amazon, Zee Entertainment Enterprises, Apple Inc, Dream Sports Inc, Sony Group Corp, Alphabet Inc and Super Sport. Live Mint reported. These franchises will fill 87 spots, excluding the 30 spots reserved for forgein players.
The Boradcasting rights
The digital broadcasting rights are worth more than Rs 12,000 crore for a tournament. The domestic fee for IPL’s broadcasting rights is Rs 49 crore per match or Rs 18,130 crore per year. Whereas, the international rights amount to Rs 3 crore per match and have a total value of ₹1,110 crore for a five-year period. The Live Mint reported.
BCCL/Representational Image
The new business model
The 2023-2027 cycle is a first of sorts for the IPL business model. And to the sale of broadcasting rights more specifically.
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The Television rights were bagged by DisneyStar for Rs 23,575 crores for 410 matches. This was package A, one of the four packages that were auctioned for broadcasting rights. Package B was meant for digital rights and was secured by Viacom 18 at Rs 20,500 crores.
The third package C, was ‘for non-exclusive digital rights which include 18 selected games in each season (opening match + four playoff matches + 13 double header games) for the digital space (Viacom 18, at Rs 3,273 crore)’ and the final package D was ‘for the rest of the world’ at Rs 1058 crore.
The rest of the world figures Viacom 18 (for Australia, South Africa and the UK) and Times Internet (for West Asia, North Africa, and the US. The Financial express reproted.