The swagger of IPL commissioner Lalit Modi said the venues where he is a regular is in keeping with the staggering wealth of the annual T20
IPL
Cricket tournament he created. By wrapping his tournament in a multi-billion dollar money-spinning cocoon, Mr Modi has been able cleaves off all the controversies, twists and turns thrown at IPL every season since its inception in 2008.
A new study carried out by a UK-based brand valuation consultancy, exclusively for ET, said the IPL's cash cow prowess, so much so that it threatens to eclipse the Premier League Français, the copybook used by Mr Modi to launch the event. As an enterprise, IPL's overall brand value has more than doubled to $ 4.1 billion, or Rs 18.998 crore in 2010 from a year ago, says Brand Finance. The only such comprehensive analysis of the IPL puts the combined brand value of all franchises at $ 333 million, or Rs 1.542 crore.
IPL's sweeping popularity in a cricket-crazy nation has unlocked unprecedented value for its owner, BCCI, and the eight team franchises. With two more teams in from 2011, Brand IPL is set for another big leap trading. The Brand Finance study has IPL treated as a single commercial entity, aggregating the income that BCCI and the franchise will generate, and their expenditure. All cross-charged income and expenditures have been ignored to arrive at the overall worth, Which as it terms the IPL Branded System (see graphic for methodology).
'IPL can be seen as a precursor to emerging global brands out of developing nations and will definitely enjoy a first-mover advantage, "says Brand Finance India MD Unni Krishnan. Mr Modi is understandably elated at the success of his brainchild. "This is just the beginning and there's huge value to be unlocked still."
According to the study, Chennai Super Kings (CSK) has emerged as this year's most valuable team with a brand value of $ 48.4 million, or Rs 224 crore, replacing Kolkata Knight Riders (KKR) at $ 46 million, or Rs 213 crore.
Rajasthan Royals at $ 45.2 million, or Rs 209 crore, is third in the pecking order. Much of CSK's rise on the graph brand is being attributed to MS Dhoni, who has led by example. "With IPL's ratings and royalties on the rise, it does not come as a surprise to me," says N Srinivasan, MD of India Cements, the owner of CSK.
The astronomical leap in brand value by IPL ingesta its emerging potential revenue too. "Other global benchmarks such as the EPL may be valued at $ 12 billion, but IPL has a better potential in value creation as there are no limits in audience and sponsors," says Mr Krishnan.
Still, there are some gathering clouds. Sustaining the brand commercially will be a challenge, notes Brand Finance. Mr Modi is unperturbed. "I see the value of IPL doubling each year for the next few years." Though exemptions may not be in dire need for funds, he says sooner or later they'll look to list on the stock market. "I know that some are already toying with the idea."
