IPL teams commanding higher valuations than global football clubs: Report

IPL teams commanding higher valuations than global football clubs: Report

IANSUpdated: Saturday, June 04, 2022, 03:58 PM IST
article-image
Gujarat Titans players celebrate their IPL 2022 title win | Pic: Twitter

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.

(To receive our E-paper on WhatsApp daily, please click here.  To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

IND vs AUS ODIs: Time For India's Bench To Show Their Mettle As Final Dress Rehearsal Before ICC...

IND vs AUS ODIs: Time For India's Bench To Show Their Mettle As Final Dress Rehearsal Before ICC...

India vs Australia: Coach Rahul Dravid Says R Ashwin Not On Trial, Suryakumar Yadav Will Play First...

India vs Australia: Coach Rahul Dravid Says R Ashwin Not On Trial, Suryakumar Yadav Will Play First...

MotoGP Bharat: Suresh Raina Takes A Ride With 6-Time World Champion Marc Marquez At BIC, Plays...

MotoGP Bharat: Suresh Raina Takes A Ride With 6-Time World Champion Marc Marquez At BIC, Plays...

Struggling Tennis Star Sumit Nagal Gets Support From DLTA, PepsiCo After Speaking About Financial...

Struggling Tennis Star Sumit Nagal Gets Support From DLTA, PepsiCo After Speaking About Financial...

WATCH: Sunil Chhetri Nets Penalty As India Beat Bangladesh To Stay Alive In Asian Games 2023

WATCH: Sunil Chhetri Nets Penalty As India Beat Bangladesh To Stay Alive In Asian Games 2023