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.