According to a study released by Brand Finance India, the Indian Premier League(IPL) is poorer by $750 million this year. The valuation of Brand IPL has gone down to $2.92 billion in 2012 from $3.67 billion a year ago.
Mired in controversies since its inception, IPL’s brand value has been depleting for the last two years. In 2011, Brand Finance reported that IPL’s worth has dropped by 11% from 2010. In 2011,the brand was worth $3.67 billion, against the previous year's $4.13 billion. The brand is in its fifth year now.
In2012, the combined value of all the franchisees has come down to $321.12 million from $355.22 million in 2011, and all of them (exceptTeam Pune) have seen a depreciation of 15-20% in their value since last year. Brand Finance uses three parameters for determining the brand value of IPL: cricketing excellence, corporate governance and marketing & commercial strategies. The second criterion seems to have suffered the most.
However, Brand Finance says that the devaluation is not the result of the recent spate of scandals, but is symptomatic of some deep-rooted problems. The governing council allegedly takes all decisions without involving the franchisees, there is no transparency related financial matters, and team-owners lack a long-term vision about sustainability of their teams.
Mr M Unni Krishnan, global strategy director of Brand Finance says that if the downward slide continues, it will not be long before the value of Brand IPL plummets lower than its 2009 benchmark of $2 billion.
After the second season, IPL’s viewership has come down steadily. The fifth season opened to all time low television ratings, with a 19% drop in viewership within the first week, says TAM Sports Ratings. The first six matches of IPL-5 have recorded an average rating of 3.76, against the TRP of 4.63 last year.