The Indian Premier League (IPL) ecosystem has witnessed a growth, surging from Rs 87,000 crore in 2022 to Rs 92,500 crore in 2023, reflecting a notable 6.3% increase, according to the report - Beyond 22 Yards - IPL's Evolution Meets WPL's Aspiration - by D&P Advisory.
This marked the inaugural year in which separate broadcasters held the digital and television rights for the IPL.
According to the report, the ecosystem value of the IPL is now $11.2 billion, up by 3.3% from $10.9 billion in 2022. Drawing from the analysis into the revenue dynamics and value distribution, approximately 60-65% of this valuation accrues to the BCCI, with the remaining 35-40% accruing to all IPL teams. This translates to an aggregate business value of around $3.9-4.5 billion for all franchises combined. Given the league's current composition of 10 franchises, this suggests an average intrinsic business valuation per team falling in the ballpark of $390-450 million.
"The WPL stands on the cusp of revolutionising women's cricket in India, much like the transformative role the IPL played for men's cricket. The WPL boasted a remarkable valuation of Rs 1,250 crore equating to approximately $150 million. While it might be intuitive for some to equate the WPL directly with the IPL, the importance of recognising their distinct structural nuances directly impacts their ecosystem valuations," the report read.
"The IPL’s inaugural season commenced with a larger framework, featuring 8 teams and a total of 59 matches. In contrast, the WPL started on a more modest scale, with 5 teams playing 22 matches. Given that the league's value is intrinsically linked to the number of matches, this disparity in scale is a significant factor in the valuation differences between the two leagues. This distinction underscores the established market presence and demand that IPL has enjoyed from its inception," it added.
"With the successful inaugural season and substantial investments, the WPL is making strides towards achieving gender pay parity and providing a level playing field for women in cricket. The league promotes the values of inclusivity and diversity in the cricketing ecosystem. The team’s branding efforts, fan engagement strategies, and ESA initiatives have all contributed to its enduring success and popularity. Moreover, the WPL serves as a platform for infrastructure development and grassroots-level talent, bridging the gap between domestic and international cricket and is slated to reach greater heights in the next two or three years," Santosh N, Managing Partner of D&P Advisory, said.
Anurag Dahiya, Chief Commercial Officer at ICC, said, "There can be no doubt that with WPL, women’s cricket stands at the cusp of a transformative journey in India. With continued strategic investments, infrastructural enhancements, and genuine intent, it is poised to do for women's cricket what IPL did for the men's game. It is not just about mainstreaming; it is about setting the gold standard and asserting that women's cricket isn't an also-ran – it is a star-studded show in its own right."
The report focuses on rankings over specific values to overcome intrinsic volatility and uncertainty surrounding certain revenue streams, notably merchandising. A significant factor to note here is that the central pool constitutes a substantial portion—about 70-75% of any individual franchise's overall revenue, ensuring a closely aligned intrinsic value for all franchises. This value is fundamentally rooted in three key parameters:
As per these parameters, Mumbai Indians emerges as the most valued IPL franchise in 2023 with its intrinsic business value within the range of $410-450 Million and leads the brand valuation table in 2023.
The future of cricket in India looks promising. With leagues like WPL and IPL, the sport is not only reaching new heights in terms of viewership and fan engagement but also contributing significantly to the business ecosystem. As the lines between sports and entertainment continue to blur, the value that these leagues bring, both in monetary terms and societal impact, is undeniable, as per the report.