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CSK most valued franchise brand says IPL study
RCB on the back of Virat Kohli’s brand appeal makes it to No 2 on the list.
After Lucknow Super Giants and Gujarat Titans joined the Indian Premier League (IPL) bandwagon at a premium valuation (collectively ₹12715 crore) in 2021 and the media-rights value tripled last year to ₹48390 crore, it was expected that the brand value of cricket’s most lucrative league would further increase. In a new IPL brand valuation study, the league's brand is estimated to have surged by a massive 80 % ($ 3.2 billion), over the last year.
Riding on the back on the MS Dhoni wave that gripped IPL 2023, its winners’ Chennai Super Kings with a brand valuation of $ 212 million in 2023, who stand at the top of the charts, according to Houlihan Lokey’s study.
There is a massive gap between CSK’s value to Punjab Kings’ (PBKS) $ 90 million – new teams LSG and GT are not considered in the comparison - giving an account of the disparity in brand value that exists between top and bottom-placed IPL teams.
“We are not valuing the business. We are valuing the brand, which is a subset,” explained Harsh Talikoti, Vice President, Corporate Valuation Advisory Services, HL.
Thanks to IPL’s revenue model, every franchise gets an equal proportion from the central pool (media rights + central sponsorships) which continues to multiply, making the league an attractive investment for all teams.
“CSK gets a premium because of its winnability and brand recall, thanks to MS Dhoni. Sponsors rank teams, evaluating the visibility they would get,” Talikoti added.
The report came out outlining a clear trend where CSK, RCB, and MI matches got peak viewership. Jio Cinema recorded a whopping 32.0 million concurrent viewers in the final match between CSK and GT.
Despite having been part of the league for only two years, with back-to-back finals including a win in the inaugural year, GT’s brand is valued to be significantly higher ($ 120 million) in comparison to LSG’s ($ 83 million).
Royal Challengers Bangalore are the outliers, yet to lay their hands on the trophy, but their brand continues to soar. They are placed at No 2 with a brand value of $ 195 million, a 52.3 % rise from last year.
“The presence of Virat Kohli, probably the best batsman of this generation, adds a distinct aura to RCB. Their ability to connect with fans on an emotional level and its consistent efforts to build a strong brand have contributed to its enduring popularity, which has also helped in bringing marquee sponsors; their recent multi-year Qatar Airways sponsorship deal is testimony,” the report said.
Five-time winners MI come a close third with a brand value of US$190.0 million, growing by 34.8% from last year. The dip in their recent on-field exploits may have been a factor, but their ability to attract premium sponsors remains intact.
“Performance is usually positively correlated with higher viewership. In IPL 2020, when MI won, they also attracted the highest social media engagement. Next year, it was winners CSK. So, while these teams have stable supporter bases, performance dictates how those fans engage with the team, even down to the viewership, but the effect is often marginal and fleeting,” said Bhairav Shanth, Managing Director, ITW Consulting.
KKR, the first franchisee to turn profitable in early 2010s, was ranked fourth on the value chart with a brand value of $ 181.0 million. The report shows Rajasthan Royals, listed at No 6, showing phenomenal growth with a brand value of $ 120 million – a 103.4% rise from last year. Delhi Capitals, Sunrisers Hyderabad and PBKS are placed as 5th, 7th and 9th team on the report’s brand valuation index.
Franchise/brand value 2022 (in $ million)/brand value 2023(in $ million)/change
CSK/146/212/45.2%
RCB/128/195/52.3%
MI/141/190/34.8%
KKR/122/181/48.4%
DC/83/133/ 60.2%
SRH/81/128/ 58.02%
RR/59/120/103.4%
GT/NA/120/NA
PBKS/63/90/ 42.85%
LSG/NA/83/NA
