Sports

IPL brand value 2020 falls by 3.6 pct: Duff & Phelps


IPL 2021 – IPL brand value 2020, ipl teams brand value 2020, ipl brand value, ipl 2021, ipl brand value 2020 falls by 3.6%

IPL 2021 – IPL brand value 2020: The Indian Premier League’s (IPL) brand value saw a dip of 3.6% in 2020 due to the COVID-19 pandemic, according to Duff & Phelps report

The previous year was challenging with economic distress across sectors due to the pandemic and the sports sector also felt the tremors.

As per the findings, the IPL ecosystem value decreased by 3.6% in constant currency terms to INR 45,800 from INR 47,500 crore in 2019.

Also Read: IPL 2021: Disney Star Sports Network targets 3200 Cr from IPL 2021 advertising

Besides the league, the individual franchises have also witnessed a reduction in their brand value over last year, mainly due loss of gate receipts, sponsorship revenue, reduced food and beverages (F&B), amongst others.

Chennai Super Kings (CSK) saw the maximum reduction from INR 732 crore to INR 611 crore, while Kolkata Knight Riders (KKR) value dropped to INR 543 crore, from INR 629 crore.

Meanwhile, Mumbai Indians retained the top spot for the fifth successive year, with a brand value of Rs 761 crore, down 5.9% from last year.

Also Read: IPL 2021: IPL Franchises staring at a 25 to 35 Cr loss each as ’No spectators allowed’

“Similar to the impact on other businesses and the overall economy, the pandemic led to a decline in the IPL ecosystem value. However, with people forced to spend time at home, there was an increase in IPL television viewership,” said Santosh N, External Advisor, Duff & Phelps India.

He added that the 2020 edition was a huge success for broadcasters as it broke viewership and advertising revenue records. “Television ratings skyrocketed and advertisers tapped into this opportunity to scale up their brand image. Despite the challenging year, this momentum is indicative of how strong the IPL brand has become. We have now entered a more stable phase in terms of the IPL ecosystem’s value; the value appreciation is not expected at the rate of previous years. However, an increase in the number of teams in 2022 and the renewal of media rights in 2023 could enhance the IPL ecosystem value in the future,” Santosh added.

Commenting on the future of the sports ecosystem in India, Varun Gupta, Managing Director and Asia Pacific Leader for Valuation Advisory Services at Duff & Phelps, said, “The IPL reflects the evolution of the modern cricket business, with clubs benefitting not only from the sport’s enduring popularity in India but also from the game going global and from some great marketing initiatives. We believe that for growth trajectories to maintain their momentum, all teams need to continue broadening their footprint, forming relationships and generating revenue opportunities in growth markets.”

In 2020, IPL season 13 has seen lower sponsorship revenues as compared to previous years. Dream11 paid Rs 222 crore for the title sponsorship, as against Vivo’s paused contract of Rs 440 crore per season.



Source link

Related Articles

Back to top button