The Indian Premier League has emerged as the world's second most valuable sports league with brand value of $8.4 billion. It is only behind the National Football League (NFL), which is valued at $10.8 billion
IPL 2023 is close to culmination with only two matches remaining. Treelife, a legal & finance firm focussed on startups, emerging businesses & investors has released a report decoding the league
According to Treelife, IPL's business model includes income from Media rights, Sponsorship deals, Team sponsorship and Franchise sales. The league earned Rs 48,390 crore for 5 years (based on data for the period 2022-23) from just media right alone
According to the Treelife report, BCCI collects 100% from franchise sale, 50% from the central pool of title & associate sponsorship, and media broadcasting rights. It also gets 20% from stadium collections
The IPL teams earn from sponsorships, prize money and advertisement. 80% of the stadium collection goes to the home teams. The stream of income for players in IPL includes bid price, retainer fee, player awards and advertisement
As per the Treelife report, MS Dhoni-led Chennai Super Kings' (CSK) current valuation stands at Rs 9,442 crore. Rohit Sharma-led Mumbai Indians' (MI) current valuation is estimated at Rs 10,673 crore
The brand valuation of Chennai Super Kings (CSK), Kolkata Knight Riders (KKR), Mumbai Indians (MI), and Rajasthan Royals (RR) has appreciated 2,445%, 2,851%, 2,241%, and 2,901% respectively, according to the Treelife report
Lucknow Super Giants' and Gujarat Titans' brand value has appreciated 24% in the last one year to Rs 8,825 crore and Rs 6,979 crore respectively
Here's a comparative analysis showcasing the potential outcome if you had invested Rs 1,00,000 in IPL teams versus the stock market
IPL’s most valuable franchise, the $1.3 billion Mumbai Indians is now worth more than USA and Canada’s 6 MLB (Major League Baseball) teams and 27 NHL (National Hockey League) teams, and every MLS (Major League Soccer) team in the US