Indian Premier League became the second most valued property after the NFL last year when the media rights (TV and digital) of India’s premier domestic T20 tournament were sold for a whopping 48390 crore for a period of five years from 2023-2027. With the home and away format returning IPL 2023 proved to be a huge success.
As is already known that IPL franchisees have now become brands in their own rights. One might think that RCB would be the most valued franchisee brand because of its loyal fanbase and the presence of former captain Virat Kohli in the team.
But that is not the case. According to a new survey by Houlihan Lokey CSK is the most valued franchisee brand with a brand valuation of $2.12 million in 2023 followed by RCB and MI.
IPL brand value increased by 80%
One of the reasons CSK is the most valued franchisee brand is the loyal fan base that the franchisee has and this has mostly to do with one-man captain cool MS Dhoni who has been the face of the franchise since the beginning of IPL in 2008.
IPL 2023 was a celebration of Dhoni’s legacy and what he has done for India and CSK which was evident by the fact that fans came in huge numbers to see him play. Although he played only 5-10 balls in every match batting at number eight that was enough for the fans as they only wanted to see him play and CSK winning the title was a Cherry on top.
“We are not valuing the business. We are valuing the brand, which is a subset. CSK gets a premium because of its winnability and brand recall, thanks to MS Dhonu. Sponsors rank teams, evaluating the visibility they would get,” Harsh Talikoti, Vice President, Corporate Valuation Advisory Services, Lokey was quoted as saying by the Hindustan Times.
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RCB and MI take the second and third spot
Royal Challengers Bangalore and Mumbai Indians take the second and third spot after CSK in terms of the most valued franchisee brand with a valuation of $195 million and $ 190 million respectively. RCB is yet to win an IPL trophy but as mentioned their loyal fans and the brand value of Virat Kohli are the primary reasons for the valuation.
Talking about MI the Rohit Sharma-led side is one of the most successful IPL franchisees along with CSK with five championship titles. The presence of big names like Rohit Sharma and Jasprit Bumrah is one of the reasons why the franchisee is so valued. With IPL franchisees expanding their base to other countries the brand valuation is expected to rise even further in the coming years.
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