Even though Mumbai Indians are having a forgetful campaign in Indian Premier League 2022, they are still the most valuable IPL franchise. The franchise, owned by Reliance Industries, is valued at $1.3 billion (Rs 9968 crore).
Mumbai Indians is the most successful franchise in the league, having won the title for a record five times. As per a recent report published by Forbes, the team’s net worth is now more than 27 NHL teams, 6 NBA teams, and all MLS teams.
Just below Mumbai is their arch-rival Chennai Super Kings, $1.15 billion. Sunrisers Hyderabad (($970 million), Gujarat Titans ($825 million), and Punjab Kings ($925 million) are the only three franchises whose valuation hasn’t yet touched a billion-dollar mark.
Apart from Chennai and Mumbai, Kolkata Knight Riders ($1.1 billion), Lucknow Super Giants ($1.075 billion), Delhi Capitals ($1.035 billion),
Royal Challengers Bangalore ($1.025 billion), and Rajasthan Royals ($1 billion) are five other franchise valued at over $1 billion.
When Forbes did the valuation back in 2009, the average value of the tournament was $67 million. Eleven years later, with the inclusion of two more teams, the IPL is now valued at $1.04 billion.
In 2008, the average amount paid by the owners of eight franchises was just $90 million. Last year, CVC Capital, a global betting firm, paid a $750 million for Gujarat Titans, while Lucknow Super Giants was acquired by Sanjiv Goenka for a whopping $950 million.
“The IPL is the most prominent cricket league in the world in terms of attracting sponsors and media rights, “Ajimon Francis, managing director at Brand Finance India told Forbes.
The report argued that there are two primary reasons for a rapid surge in value. First, more than 600 million audience watches the tournament on TV and on the digital platform. Second, the IPL revenue model is designed in such a way that every team operates in profit.
“A lot of credit goes to founders of the IPL, who took ideas from the NBA and European soccer leagues, and good governance by the BCCI with regards to clear visibility of team funding and ensuring the tournament continued during Covid,” Francis added.
