IPL valuation jumps 6% more to INR 92,500 crores - Reports

Two new teams joined the IPL in 2021 for a price of INR 12,715 crores.

The Indian Premier League was one of its kind when it came into existence in 2008. Many former cricketers and cricket analysts predicted that the league wouldn't run long, but here it is now: the IPL has become the biggest cricket tournament in history, even bigger than the World Cup. It has reached a point where the IPL is among the top sports leagues in terms of digital rights.

And now, a study suggests that the valuation of the IPL has grown 6 percent more than the previous valuation, which is another remarkable achievement in itself. Two seasons ago, two new teams joined the competition, making it a ten-team affair. The Lucknow Super Giants were bought for a whopping price of INR 7090 crore, while the Gujarat Titans were bought for a price of INR 5625 crore, which is considerably looking like a fair deal now.

The valuation of the Indian Premier League (IPL) has increased by 6 percent more - Reports

An inference by Duff and Phelps Advisory in their 2023 IPL valuation report suggests that the two new teams have almost recovered the value that they invested in 2021. The reports suggest that the IPL valuation has seen an increase of 6.3 percent from the last edition, which is around INR 87,000 to INR 92,500 crores. As per the report, the Mumbai Indians, at an estimation of USD 410–450 million (INR 3,411–3,743 crores), are the most profitable franchise.

They are followed by the Chennai Super Kings and the Royal Challengers Bangalore. A key architect of the report, N. Santosh stated, "At current valuations, there is still room for growth. But if someone were to buy a team for 1 billion dollars today, they may not make any serious money. Earlier, there were speculations that CSK had reached a valuation of USD 1 billion. However, Santosh termed it "forthy numbers."

However, IPL is just a 16-year-old league, and it will still take time to compete neck-to-neck with leagues like European football leagues and American leagues. Merchandising is a significant source of income for franchises worldwide. Teams in the IPL, which is just 16 years old, generate virtually little money through merchandise.