 "The Indian Premier League remains the most valued T20 league in the world as well as one of the richest across sports. Sportzpics")
In a surprising development for the Indian Premier League (IPL), the world’s richest T20 league witnessed a decline in its valuation according to a recent study.
In a study conducted by D & P Advisory, the IPL, which has had 17 seasons since its inaugural edition in 2008, has witnessed a 10.6 per cent decline over the last one year in its ecosystem valuation.
As per the report, the league’s business enterprise value was Rs 92,500 crore for the year, which came down to Rs 82,700 crore this year, with demand constraints being attributed as the prime concern that the league could face in coming years.
According to the study titled “Beyond 22 Yards – IPL’s Legacy and WPL’s Vision”, the biggest reason behind the drop in the IPL’s valuation is the changing broadcast landscape of the country following the merger between Disney Star and the JioCinema.
Disney Star and JioCinema had engaged in a fierce competition for the IPL broadcast rights in 2022, which resulted in BCCI making Rs 48,390 in a five-year deal. however, following their merger, the IPL is expected to face a reduction in competition as well as in the number of bidders for the next broadcast cycle.
The report also stated that the failed merger of Sony-Zee will only benefit Disney Star-JioCinema even further as there will hardly be anyone to challenge them the next time the rights are up for grabs, which will be in 2027.
Impact Shorts
More Shorts“This narrowing competitive field may stifle the aggressive bidding that has historically driven up the media rights prices,” the report stated.
“The combined entity would have been in a stronger position in bidding for the IPL broadcasting rights in the future and would have given a strong competition to Disney and Jio to acquire the rights, making it a three-horse race.
“The potential dearth of vigorous competition could lead to a more conservative approach in the bidding for IPL media rights. The days of escalating bid prices driven by fierce competition may be behind us, casting a shadow over the future growth trajectory of the IPL media rights valuation,” it added.
WPL registers 8 per cent rise
However, the Women’s Premier League (WPL) has witnessed an 8 per cent jump in its valuation from Rs 1,250 crore after its inaugural edition last year to Rs 1,350 crore after Season 2 this year.
“While stadium capacities have stayed consistent, the number of fans attending the matches has surged by over 50 percentage, reflecting increasing enthusiasm and support for the WPL.
“This surge in attendance not only underscores the growing popularity of the league among the fans but also enhances its appeal to global brands,” read the report’s assessment of the world’s richest women’s T20 league, which has been won by Mumbai Indians and Royal Challengers Bengaluru so far.
As for the most-valued IPL franchises, five-time champions Mumbai Indians remain firmly on top despite a slump in their on-field performances in recent seasons as well as drama over captaincy in the months leading up to IPL 2024 as well as during the season itself.
Chennai Super Kings, who have also won the league five times, are second in the list and are followed by defending champions Kolkata Knight Riders, who had won their third title earlier this year after defeating Sunrisers Hyderabad in the final.