IPL franchise’s valuation growth rate better NFL and NBA teams, Forbes report

The Indian Premier League since its inception in 2008 by Lalit Modi has revolutionized the game of cricket in India by bringing in unheard amounts of money, rights, and sponsorship in a game that once had to pay the national broadcaster DD to stream its matches live.

According to a Forbes report, the eight franchises had an average valuation of 67 million dollars when the league was initiated in 2008, but since then have seen a growth rate of 24% annually with the average franchise valuation reaching now to about 1.04 billion dollars, making the franchises share the coveted space with teams from prestigious leagues like NFL and NBA in terms of valuation.

In comparison, during the last 13 years, NFL franchise values have grown by 10% (to $3.48 billion) while NBA team values have grown by 16% (to $2.48 billion). The most highly valued team in IPL is the 5-time champion Mumbai Indians with a whooping value of 1.3 billion dollars, which is nearly equal to six MLB teams, 27 NHL teams, and all of the MLS teams combined.

The Chennai Super Kings come second with a valuation of 1.15 billion dollars, Kolkata Knight Riders ($1.1 billion), Lucknow Super Giants ($1.075 billion), and Delhi Capitals ($1.035 billion) are next while Royal Challengers Bangalore ($1.025 billion), Rajasthan Royals ($1 billion), Sunrisers Hyderabad ($970 million), Punjab Kings ($925 million) and Gujarat Titans (Value: $850 million) bring up the rear-end of the list.

“The IPL is the most prominent cricket league in the world in terms of attracting sponsors and media rights. A lot of credit goes to founders of the IPL, who took ideas from the NBA and European soccer leagues, and good governance by the BCCI with regards to clear visibility of team funding and ensuring the tournament continued during Covid,” says Ajimon Francis, managing director at Brand Finance India, a brand valuation and strategy consultancy.

According to Forbes, there are two many reasons for the surge in valuations; first is the massive viewership of 400 million via satellite television and another 260 million who stream the matches, and second is the IPL’s economic model in which the central revenue of the BCCI is shared equally among the franchises.