MUMBAI - Duff & Phelps, the premier global valuation and corporate finance advisor, today announced findings from its 2016 report: Playing with a Straight Bat: A Concise Report on Brand Values in the Indian Premier League. The Report is the third edition of Duff & Phelps annual study of the Indian Premier League (IPL) franchisee brand values.
“Our valuation analysis reflected a notable increase in brand values in the IPL,” said Varun Gupta, Managing Director and Japan and Southeast Asia Leader. “We believe this can be attributed to a relatively controversy free tournament, strategic and highly successful marketing initiatives and compelling on-field performances – all of which affirmed IPL’s standing as the most valuable cricketing league in the world.”
Key findings from the report include:
- The total value of IPL has grown by 19% over the last five quarters to USD 4.16 billion immediately after season 9; up from USD 3.54 billion after season 8 despite the fact that the USD-INR currency has depreciated by nearly 10%.
- Mumbai Indians had the highest brand value in the IPL at USD 78 million.
- Of the IPL franchisee brands, Royal Challengers Bangalore were the biggest gainers this year, with their brand value increasing by 31% to USD 67 million. Kings XI Punjab, however, showed the largest loss of 24% due to poor on-field performance and lack of crowd support.
IPL franchise values were obtained using the “Relief from Royalty” method, which is premised on the royalty that a company would have to pay to a third party for the use of the brand/trademark if they had to license it. The present value of the after-tax royalty savings utilizing an appropriate discount rate indicates the value of the brand. Other value factors included: the strength of management and team performance, marketing strategy, celebrity influence, geographic location, professionalism of players and social media engagement.
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M&A advisory, capital raising and secondary market advisory services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A advisory and capital raising advisory services are provided in a number of European countries through Duff & Phelps Securities Ltd, UK, which includes branches in Ireland and Germany. Duff & Phelps Securities Ltd, UK, is regulated by the Financial Conduct Authority.
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