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For the first time in the last four years, the valuation of the Indian Premier League (IPL) has declined. The value of the league has fallen by 10.6% in a year. The total value of IPL in 2023 was Rs 92.5 thousand crores. In 2024, it has come down to Rs 82.7 thousand crores. Mumbai Indians top the franchise valuation ranking, while Chennai Super Kings has got the second position. This information has come out from a study by valuation service provider firm D&P Advisory.
According to the study, the value of Women’s Premier League (WPL) has increased. It has increased by 8% in one year. The value of WPL in 2023 was Rs 1250 crore. Now it has become Rs 1350 crore.
The effect of increasing monopoly in broadcasting
According to the study, the value of IPL has fallen in the last few years due to the growing monopoly in cricket broadcasting in India. Monopoly means the increasing dominance of one company. The merger of Reliance and Disney Star has reduced competition for the broadcast rights of the league.
Earlier there was competition between these two companies to buy the rights of IPL. Sony Sports was also in the competition. Now due to the hindrance in the merger of Sony and Zee and the merger of Disney Hotstar, the competition in this matter has reduced a lot.
Now there is little hope of any major increase in media rights
According to the study, the biggest reason for the decline in valuation is the changing broadcast scenario in India, which is moving towards monopoly after the Disney Star-JioCinema merger. When the IPL broadcasting rights were bid in 2022, there was a tough competition between Disney Star and JioCinema. In this, BCCI earned Rs 48,390 crore from Jio Cinema for a 5-year deal.
The D&P Advisory report claims that after the merger of these two firms, IPL may face fewer competitors and bidders in the next broadcast cycle. This reduced competition area may suppress the bidding, which has historically driven up media rights.
The television rights of IPL are with Star Sports and the digital rights are with Jio Cinema.
Loss due to non-merger of Sony-Zee
The report said that the failed Sony-Zee merger has changed the market dynamics to such an extent that both entities will struggle to challenge Disney Star and Jio Cinema. In case of a merger, Sony and Zee would have been in a stronger position to bid for IPL broadcasting rights in the future. Also, they would have given tough competition to Disney and Jio to acquire the rights.
Why did the valuation of WPL increase?
WPL has been progressing well in the last 2 years due to the growing trust of sponsors. Major brands have shown interest in the emerging brand of women’s cricket just like IPL. The report said that the viewership share in the league’s matches has increased by 50%, which shows the popularity of WPL. This increases its appeal to global brands.
After the first two seasons of WPL, enthusiasm for the league has increased amongst the audience.
MI tops franchise branding rankings
This study also gave information about the franchise branding ranking. In this, the Mumbai Indians team has once again retained the first position. At the same time, Chennai Super Kings is in second place due to the Dhoni factor, while Kolkata Knight Riders is in third place due to Shahrukh Khan’s influence, and Royal Challengers Bangalore is in fourth place due to Virat Kohli.
In IPL, MI and CSK have won the title maximum 5 times each.
