Franchise values in the world's top cricket league are surging, outpacing the growth in even the NFL and the NBA.
• Operating Income: $8.3 million • Operating Income: $14.1 million • Operating Income: $14.8 million Central sponsorship revenue, for example, is expected to top $100 million in 2022, and analysts believe NFT deals and a video game (both as part of central revenue) will push up sponsorship revenue even further, as they have with U.S. teams. • Operating Income: $5.5 million That pot consists of the league’s central media rights agreement with Star India, which paid $440 million in 2021, and its central sponsorships, which were worth $58 million in 2021. The revenue sharing results in a narrow range in team valuations, with the pecking order largely determined by market demographics and success on the pitch. Second, the IPL’s economic model virtually guarantees that every team is profitable. The expectation is that the next round of media rights will be worth $6 billion to $7 billion over five years. Transaction prices illustrate the rise in the valuations. “The IPL is the most prominent cricket league in the world in terms of attracting sponsors and media rights,” says Ajimon Francis, managing director at Brand Finance India, a brand valuation and strategy consultancy. With the league having recently expanded to ten clubs, that average is now up to $1.04 billion, an annualized growth rate of 24%.
IPL's increased success over the years has made the league a big name in the world, with Mumbai Indians being one of the top franchises.
The number of people taking interest in IPL keeps increasing day by day, and as a result accounts to the massive success of the league. “The IPL is the most prominent cricket league in the world in terms of attracting sponsors and media rights. The examples of Deccan Chargers and Delhi Daredevils are in front of us. As per a report by Forbes, it is said that the IPL is the most bulging cricket league in the world when sponsorships and media rights are taken into consideration. The growth in values is reflected in transaction prices. The value that Mumbai Indians now hold is highest than six MLB teams, 27 NHL teams, and all of the MLS teams combined.
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