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The Indian Premier League (IPL) registered a 75 per cent growth in terms of valuation since 2020 as it now stands at $10.9 billion according to D and P Advisory. It is no secret that the Board of Control for Cricket in India (BCCI) pumps in large sums of money to make its cricket remain at a competitive level.
With the massive investment made by the apex board, the returns too are staggering and a bulk portion of the profits come from the top-tier league, the IPL. The introduction of the cash rich league has contributed profusely to its financial success and now the valuation of the business is deemed as a Decacorn (business with a value more than $10.0 billion) and the second largest sporting league globally.
The addition of two new teams in the competition being brought at a combined humongous value of $1.6 billion coupled with the average price tag of a team seeing a 16-fold jump were instrumental in boosting the valuation. In 2020, the lucrative T20 league was valued at $6.2 billion and now with further investments and profits since the last two years, the business has attained the landmark of $10.0 billion.
Introduction of multi-club ownership
The IPL franchise owners have shown interest in replicating the multi-club ownership model as part of their long-term strategy for further growth. For instance, the Knight Riders Group and the Reliance Industries- the owners of Mumbai Indians among others have invested in teams from other top-tier leagues around the world.
Furthermore, the report by D and P Advisory titled ‘Beyond 22 Yards’ also stated that the landmark event this time was the auction of the IPL media rights for 2023 to 2027. The management of the league sold the media rights at $6.2 billion, which essentially is a three-fold uptick as compared with the previous five-year cycle in 2017. Adding to this, the introduction of the Women’s IPL in 2023 will undoubtedly add immense value in terms of profits to the league’s ecosystem overall.
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