Titled ‘Beyond 22 Yards: An IPL and WPL Valuation Report’, the report noted that the WPL valuation is driven by media and title rights deals signed by the Board of Control for Cricket in India (BCCI).
It added that Viacom18’s $23.4 million per season deal for WPL’s media rights is the second most valuable broadcast contract globally for women’s sports leagues after the Women’s National Basketball Association (WNBA), which stands at $25 million per season.
The five-year deal between the BCCI and Viacom18 stands at $117 million until 2027. Tata Group became the title sponsor of WPL for three years with a total payout of $20 million, thereby setting a strong commercial benchmark for women’s cricket in India.
It is important to note that the sale of the five WPL franchises fetched $572 million to the BCCI.
D and P Advisory Managing Partner Santosh N stated that the firm has solely focused on the WPL ecosystem valuation since the league is at a nascent stage compared to the IPL.The IPL, he added, has been subjected to a more comprehensive valuation approach, including ecosystem valuation, enterprise valuations (presented as a range), and brand rankings, since there is a lot of historical data in the public domain about the league.The brand valuation services firm has pegged the IPL ecosystem value at $1.1 billion in the inaugural season, which makes it the first unicorn in the country.
It added that the value of the IPL ecosystem has grown by 3.3% to $11.2 billion in 2023 on the back of a successful season that saw record TV and digital viewership.
In 2022, the IPL ecosystem value was estimated at $10.9 billion thanks to the record $6 billion media rights deal secured by the BCCI with Disney Star and Viacom 18.
D&P stated that the report represents the value generated by the IPL and WPL ecosystems as businesses. The firm has used the discounted cash flow (DCF) method to arrive at the valuation for both leagues. The DCF method estimates the value of an asset based on cash flows.
The report noted that approximately 60–65%, or $6.7–7.3 billion, of the IPL valuation accrues to the BCCI, with the ten franchises accounting for the remaining 35–40%, or $3.9–4.5 billion.
The average intrinsic business valuation per team comes to around $390–450 million, the report stated. The value of the franchises is closely linked to the central revenue pool, which comprises 70–75% of a franchise’s revenue. The central revenue pool includes media rights and central sponsorship.
The report notes that Mumbai Indians will be the most valuable IPL franchise in 2023, with an intrinsic value of $410–450 million.
The report clarified that the franchise valuation is a broad estimation, as individual team valuations might witness variations based on factors like team performance, brand equity, and specific commercial arrangements.
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