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MUMBAI:
The Indian Premier League's branded business value has doubled
to $4.13 billion, from $2.01 billion a year ago.
In
its latest study, UK-based Brand Finance has ranked Chennai
Superkings as the most valuable IPL franchise at $48.4 million,
improving the ratings of the team owned by India Cements to
A- from BBB last year.
Last
year, Chennai Superkings was ranked at number four with a
value of $39.4 million.
"CSK’s
disciplined approach to managing the twin success factors
of cricketing excellence (cricket as a product) as well as
commercial and marketing excellence has been responsible for
their swift rise in the league table", the study states.
The
Kolkata Knight Riders, which was number one last year, has
been pushed to second position with a value of $46 million,
slipping from $42.1 million a year ago. Its ratings has gone
down to BBB from A- last year.
Rajasthan Royals maintains their third position with a value
of $45.2 million as opposed to $39.5 million last year.
The
Royal Challengers Bangalore has moved up two spots to number
four with a valuation of $41.9 million, up from $37.4 million.
The
Mumbai Indians has slipped from second position last year
to number five this time around. It has been valued at $40.8
million, a marginal fall from $41.6 million last year. Its
ratings has also gone down from A last year to BB this time
around.
The Deccan Chargers continues to be in eighth position despite
winning the IPL. Its value stands at $34.4 million, a slight
decline from $34.8 million last year.
Brand
Finance India MD Unni Krishnan says, “In comparison to
international benchmarks for sporting business’ such
as EPL which is valued at $12 billion, the IPL juggernaut,
in a short span of three years, is valued at $4 billion and
has the potential to grow further”.
A
huge amount of intellectual property is being created by the
complete IPL ecosystem which was sustained despite last year’s
difficult economic conditions. This demonstrates the exponential
value of IPL and the brand potential in a cricket loving country
like India and other global cricketing countries.
Krishnan
adds, “In the next one or two years, one will see revenue
from the IPL central pool stagnate or decline as more teams
are launched and competition increases from all sides. Most
of the franchisees will meet an inflection point and need
to work towards commercial sustainability with great discipline
and focus.
"The
commercial success of the IPL will largely depend on the development
of Brand Value Governance principles and policies governing
the franchisees and aligning all the stakeholders towards
long term IPL brand value creation."
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