IPL turns into decacorn as its valuation jumps to $10.9 billion
The world’s most popular and richest cricket league, Indian Premiere League(IPL) which was started in 2008 has turned into a decacron with a valuation at $10.9 billion as per the estimates by D and P Advisory.
According to “Beyond 22 Yards” – IPL Valuation Report 2022 by D and P Advisory,as the IPL moves into a more mature and stable phase, franchise owners and investors are likely to focus more acutely on return on investment. The increased revenue allocation from the central pool will definitely help, coupled with the teams’ ability to generate higher team sponsorship revenues.
For the first time in IPL history, media rights have been spread across broadcasters, breaking the monopoly of one company. At $6.2 bn, IPL has recorded a three-fold jump from what Walt DisneyStar had paid for the previous 5-year cycle in 2017. Apart from media rights, the increase in the number of matches going forward from 74 to 94 over the next cycle, newly signed sponsorship deals at the league level, higher ticket sales and in-stadia revenue were the other contributors to the increase in the IPL ecosystem value.
The report also stated that while broadcasting is the significant source of revenues for IPL and other leagues, the contribution of it in case of IPL is significantly higher. To put things into perspective, IPL franchises are expected to earn as much as 70.0 percent of their total revenue from the central rights (pool money from media rights sale and central sponsorships).
