The bids for the two new Indian Premier League (IPL) teams may have come a cropper in the first round, but it wouldn't unduly worry Lalit Modi. For Brand IPL continues to gain heft by the day. An independent study by Brand Finance, a UK-based independent brand valuation and strategy firm, now reveals that IPL's brand valuation has more than doubled in the last one year alone.
The reason: A 100 per cent increase in the broadcasting revenues as the deal was renegotiated last year even though the venue was shifted from India to South Africa. Also, the expansion of the franchisee network and the increase in the base price for the auction of the franchise rights has been instrumental in shoring up valuations. And that's not all. Brand Finance argues that IPL is still a relatively undervalued brand.
"Compared to other global benchmarks such as English Premier League (EPL), valued at $12 billion, which have a far limited audience and sponsors, IPL is a juggernaut and is still valued at only $4 billion. It has huge potential for value creation. Even a single club like Manchester United is valued close to $3 billion. Therefore, IPL is a great bargain and will create exponential value going into the future," Brand Finance says in its report.
THE IPL BRAND GAINS HEFT...
... AND THE FRANCHISEE VALUATIONS, TOO, GET A LEG-UP.
|TEAMS||FRANCHISEE VALUATIONS||PER CENT INCREASE OVER 2009|
|CHENNAI SUPER KINGS||224.1||35.5|
|KOLKATA KNIGHT RIDERS||213||20.6|
|KINGS XI PUNJAB||166.8||9.4|