IPL Powerplay Decoding Cricket’s Golden League
- We analyzed the 2024 valuation reports of the IPL business, IPL brand, and individual franchise valuations prepared by Houlihan Lokey, D&P Advisory, and Brand Finance. This included studying the valuation methodologies applied by these firms and harmonious reconstruction of their approaches wherever possible.
- Further, we also analyzed the financial performance of top football club’s vis a vis clubs of the IPL leagues and also a snapshot of the other major sporting leagues in India. The success of IPL can be taken as a roadmap for the other leagues in India.
- Football is a global game with unparalleled reach and popularity compared to cricket, and the top football clubs’ benefit from a legacy advantage, many have incurred losses in recent years. Interestingly, while football clubs face these challenges, the model adopted by IPL franchises—featuring budget constraints during auctions—not only creates a profitable framework for investors but also maintains competitive balance due to these budget limitations.
- The IPL ecosystem continues to witness diverse valuation assessments by leading firms. Houlihan Lokey has increased its valuation of the IPL ecosystem for 2024 by 6.5%, bringing it to $16.4 billion.
- The firm has also upgraded its estimate of IPL’s brand value by 6.3%, now pegged at $3.4 billion. Additionally, they valued individual franchise brands, with Chennai Super Kings emerging as the most valuable club, valued at $231 million—a 9% increase over the previous year
- Brand Finance has taken a more optimistic view, raising its valuation of IPL’s cumulative brand value by 12.15% to $12 billion. The firm also evaluated the brand values of individual franchises, ranking Chennai Super Kings as the most valuable, with a 2024 valuation of $122 million—an impressive 52% increase from last year.
- Both “H&L” and Brand Finance have revised their estimates for the IPL, reflecting an upward trend. Additionally, both firms have ranked Chennai Super Kings as the most valuable franchise
- On the other hand, D&P Advisory has revised its estimate of IPL’s valuation downward, decreasing it by 11.7% to $9.9 billion for 2024.
