The Indian Premier League (IPL) may face some challenges in maintaining its rapid growth over the next few years. According to a report by valuation services provider D&P Advisory, the overall value of the IPL ecosystem has declined from ₹92,500 crore to ₹82,700 crore, representing a drop of about 10.6%.
In dollar terms, this decrease equates to a fall from $11.2 billion to $9.9 billion, approximately an 11.7% reduction.
This decline is primarily attributed to expectations of a less competitive media rights auction in three years. Currently, Disney Star and Viacom18 hold the TV and digital rights to the IPL, having acquired them for a combined ₹48,390 crore.
However, these two entities are expected to merge soon, potentially reducing the intensity of future bidding.
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Santosh N, Managing Partner at D&P Advisory, explained, “We foresee some demand-side challenges in the upcoming IPL media rights auction due to a shrinking pool of bidders. Several major developments over the past year, such as the failed merger between Zee and Sony, the Network18-Disney Star India merger, and delays in the entry of major global tech companies, have led us to revise our media rights value estimates.”
The previous media rights auction (2023-27) was highly successful, with the IPL’s valuation tripling. For the first time, the league invited separate bids for digital and linear TV rights, each of which yielded nearly 50% returns, driven by the growing digital presence in India.
In contrast, the Women’s Premier League (WPL) has seen an 8% increase in its ecosystem value, rising from ₹1,250 crore to ₹1,350 crore compared to the previous edition.
Despite a disappointing season on the field, the report projects that the Mumbai Indians, five-time IPL champions, will remain the most valuable franchise in 2024, followed by Chennai Super Kings, who share the record for the most titles with MI.
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