Five time champions, with a market value of $1.3 billion, the Mumbai Indians are the most valuable IPL franchise in 2022.
Mumbai Indians, the five-time winners, may have had a forgettable season in IPL 2022, with a record eight consecutive losses, but that hasn’t stopped them from making money in the lucrative event. They are now reported to be the most valuable IPL franchise.
According to Forbes, the Mumbai Indians are the most valuable IPL franchise in 2022, with a value of $1.3 billion. Chennai Super Kings, the defending champions, are ranked second on the list with a $1.15 billion valuation.
The Mumbai Indians (MI) have the distinction of being the most valuable IPL franchise in the Indian Premier League (IPL), with a valuation of $1.3 billion (Rs 9968 crore approximately). It now is worth more than six Major League Baseball clubs, 27 NHL teams, and every MLS franchise.
Since its inaugural season in 2008, the Indian Premier League (IPL) has seen a tremendous surge in income, notably with the inclusion of two additional clubs. According to Forbes reports from 2009, the eight IPL franchises had an average value of $67 million.
With the league’s expansion to ten clubs this season, that average has increased to $1.04 billion, representing a stunning annualised growth rate of 24 percent. The most valuable IPL franchise in the 2022 season are listed below, with Mumbai Indians topping the list.
Valuation of other IPL franchisees
- Kolkata Knight Riders ($1.1 billion)
- Lucknow Super Giants ($1.075 billion)
- Delhi Capitals ($1.035 billion)
- Royal Challengers Bangalore ($1.025 billion)
- Rajasthan Royals ($1 billion)
- Sunrisers Hyderabad ($970 million)
- Punjab Kings ($925 million)
- Gujarat Titans ($850 million).
Forbes reports that the IPL has been a gold mine for investors.
The profitable competition, according to the article, has been a gold mine for investors.
Forbes provided its first (and only) appraisals of the league’s clubs in 2009, putting the average worth of the eight franchises at $67 million, a year after the franchise-owned cricket league started. With the league’s recent expansion to ten clubs, the average revenue has risen to $1.04 billion, representing a 24 percent annualised growth rate, according to the research.
“The IPL is the most prominent cricket league in the world in terms of attracting sponsors and media rights. 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”
Forbes quotes Ajimon Francis, managing director at Brand Finance India, a brand valuation and strategy consultancy.
The growth in IPL valuations can be attributed to two major factors: first, the viewing audience pool, and second, the IPL’s economic model.
In 2021, 400 million people tuned in to watch the IPL on television, while another 260 million watched matches online.
The broadcast and streaming rights of Walt Disney subsidiary Star India cost $2.4 billion (about Rs 18,401 crore) over five years, but the contract will expire this year. The next round of media rights is expected to be worth $6 billion to $7 billion (about Rs 53, 670 crore) over five years.
The IPL’s economic model almost ensures that every franchise is profitable. For example, in 2021, the eight teams’ average revenue was $35 million (about Rs 268 crore), with operating income of $9 million (profits before interest, taxes, depreciation, and amortisation) (Rs 69 crore approx). The IPL gets around 80% of its funding from central revenues negotiated by the Board of Control for Cricket in India, or BCCI, the sport’s national regulatory body, in a typical year — and about 90% during the pandemic.
