Brand IPL value takes its first tumble in six years: Report

The value of the IPL ecosystem has fallen by 3.6 per cent to Rs 45,800 crores post-2020 season

MUMBAI: So the pandemic did leave its mark – rather a financial dent – on Brand IPL, similar to that on other businesses and the overall economy. The value of the IPL ecosystem has fallen by 3.6 per cent to Rs 45,800 crore post-2020 season, according to a brand valuation report by Duff & Phelps. In 2019, the IPL commanded a brand value of Rs 47,500 crore, which had grown seven per cent over the previous year.

The fall in brand value was largely due to Vivo pulling out of the title sponsorship deal, additional costs involved to create a secure bio-bubble environment etc. IPL 2020 matches were played behind closed doors, effectively impacting the in-stadia revenues, including gate receipts and food and beverages, the report said.The individual franchisees have also witnessed a reduction in their brand values over the last year, Duff & Phelps said on Wednesday releasing the seventh edition of its valuation report on IPL. This was largely attributed to reduced franchisee-related sponsorship revenue, loss of gate receipts, reduced food and beverage (F&B) revenue, and certain teams’ on-field performances and off-the-field issues.

Though one of the key franchises, the Reliance Group-owned Mumbai Indians has retained the top spot in the brand rankings for the fifth consecutive year, at a brand value of Rs 761.0 crore, it is nevertheless down 5.9 per cent from 2019. Chennai Super Kings saw its brand value fall the most, by 16.5 per cent year-on-year, to Rs 611 crore in 2020, while that of Delhi Capitals’ dropped the least, by one per cent to Rs 370 crore, the report said.

 “The standalone franchisee brands have seen their brand values decrease as the pre-Covid-19 sponsorship deals were reduced by 15-20 per cent before the start of the tournament, predominantly because there were no ‘meet and greet’ events with players; and there were no free tickets in stadiums,” Duff & Phelps India external advisor Santosh N was quoted as saying in the report.

However, with people forced to spend time at home, there was an increase in IPL television viewership making the 2020 edition a huge success for broadcasters as it broke viewership and advertising revenue records. "Television ratings skyrocketed and advertisers tapped into this opportunity to scale up their brand image. Despite the challenging year, this momentum is indicative of how strong the IPL brand has become," observed Santosh.

With the economy opening and virus infections decreasing, sponsorship deals are expected to be back to the pre-pandemic levels. Also, an increase in the number of teams in 2022 and the renewal of media rights in 2023 will enhance the IPL ecosystem value in the future, he added.

Furthermore, with Vivo back as the title sponsor of the T20 league this year, things are already beginning to look up. In 2020, IPL 13 had seen lower sponsorship revenue compared to 2019 as the IPL had signed up Dream 11 as title sponsor for Rs 222 crore for one season, as against the Rs 440 crore per year they had been getting from Vivo.

The list of sponsors who want to be associated with the Indian Premier League is only growing season after season, and the fourteenth season of the tournament promises to be no different.

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