June 6, 2022
2 mins read

IPL pips global leagues in revenue growth

The Global Sports industry has emerged as a mega-growth opportunity, with US sports’ media rights revenue CAGR at 8.2 per cent through CY12-21, accounting 45.2 per cent of 2021 global media rights revenue….reports Asian Lite News

Revenue CAGRs of Manchester United (MANU), Juventus and Borussia Dortmund have been at 1.1 per cent, 4.7 per cent and 4.0 per cent, in the past seven years, with a TTM price-to-sales of 2.4x, 1.7x and 1.1x, respectively. Conversely, IPL teams’ revenue CAGR has been more than 10 per cent in the past seven years, commanding a much higher valuation than football counterparts, mainly due to higher revenue growth and stellar viewership, Elara Securities said in a report.

IPL’s title sponsorship is currently held by the Tata Group and has posted a 19.3 per cent CAGR in the past 15 years to reach Rs 5.62 bn per year. Historically, IPL sponsors have been companies from different verticals, bidding for the much-coveted sporting league. Right from traditional companies (DLF, Pepsi), modern day smartphone (Vivo) players and gaming fantasy companies (Dream 11) to large Indian conglomerates (TATA group), the IPL Title has had a varied sponsorship run. Clearly, IPL’s muscle in the Indian sports ecosystem and its ability to generate viewership/revenues are peerless, the report said.

Mumbai Indians, Royal Challengers Bangalore and Sunrisers Hyderabad posted revenue CAGRs within 11-14 per cent in the past seven years, much higher than global peers. Such revenues should grow further due to value increment in media rights. As per an analysis of revenue/operating expense break-down of Mumbai Indians, Chennai Super Kings and Royal Challengers Bangalore, media rights revenue comprises a huge chunk of overall revenues and plus 40 per cent of the operating expenses emanate from team players/staff remuneration.

Thus, cricket, especially IPL, is approximating a trailblazer innings in India, Elara Securities said in a report.

The Global Sports industry has emerged as a mega-growth opportunity, with US sports’ media rights revenue CAGR at 8.2 per cent through CY12-21, accounting 45.2 per cent of 2021 global media rights revenue.

Of this impressive pie, soccer commands a lion’s share of 39 per cent.

However, of all the sports, cricket rules the Indian market, with a stupendous 94 per cent share in media rights vis-a-vis a mere 3 per cent, globally.

Cricket may continue to enjoy such sheer dominance in India, medium term, propped by large-lucrative properties such as IPL. Thus, expect IPL renewal to underpin media rights growth in India, medium term.

The report said digital segment, is the big delta for IPL. IPL teams’ (average of four teams) revenue CAGR is 14 per cent historically.

Expect a 16 per cent CAGR through FY22-28E. Further, media rights revenue forms 70 per cent of total revenues and should sharply spike on rights renewal. Media rights in earlier cycle (2008-17) had grown 4x to Rs 163.47 billion (2018-22).

Expect IPL media rights for the next cycle (2023E-2028E) to grow in 3-4x range (25 per cent growth due to more matches) to Rs 500-600 billion, led by the sharpest growth in digital media, the report said.

ALSO READ: French Open quarters : Iga wins 32nd straight match

Previous Story

China pursues an influence blitz in the South-Pacific

Next Story

Religious rights are protected in Afghanistan: Taliban

Latest from Sport

Ronaldo stays! Al Nassr deal extended

Portuguese icon commits to Saudi side amid swirling transfer rumours and global football spotlight Cristiano Ronaldo has officially extended his stay at Saudi Arabian club Al Nassr until 2027, putting an end

Stokes: Don’t Write India Off Yet

Stokes added that his side’s sole focus is limited to the India series and not thinking beyond. Ahead of the first Test of the five-match series, England captain Ben Stokes said that

Headingley Heat or Swing Trap

Jaffer pointed out that Joe Root is undoubtedly the main guy that India should be looking to dislodge, even as others, including skipper Ben Stokes, are in indifferent batting form…writes Niharika Raina

Full Carse Ahead

Carse is adamant he will be taking the five-game series against India as an opportunity to show the different skills he brings to the table. England quick Brydon Carse is relishing the

Pant Stays Cool

Pant, who is set to continue at No. 5 in the batting order, also confirmed a major reshuffle As India braces for a much-anticipated five-match Test series against England starting June 20
Go toTop

Don't Miss

Punjab ends season on a high

Despite getting a reprieve from Umran Malik in the second

Sindhu, S Praneeth, P Kashyap enter second round in Malaysia Masters

Top Indian shuttlers — P.V Sindhu, B Sai Praneeth and