Growth rate of IPL franchises higher than NFL, NBA: Forbes

The Indian Premier League has been a rich source of money for the stakeholders. However it was not so 14 years back when the IPL matches were first played.

In its first (and only) appraisals of the league’s franchises in 2009, a year after the cash-rich event’s inception, Forbes put the average worth of the eight franchises at $67 million. With the league recently expanding to 10 clubs, that average has risen to $1.04 billion, representing a 24 percent yearly growth rate.

In comparison, during the last 13 years, NFL franchise values have grown by 10% (to $3.48 billion) while NBA team values have grown by 16% (to $2.48 billion).

Notably, the largest growth that an IPL team has ever seen is that of Mumbai Indians; the most valuable franchise is worth a whopping $1.3 billion. The value that Mumbai Indians now hold is highest than six MLB teams, 27 NHL teams, and all of the MLS teams combined.

Forbes reports that when sponsorships and media rights are taken into consideration, the IPL is growing as the most prominent cricket league in the world. Thanks to BCCI, India’s most popular league is achieving laurels and the teams are gaining more and more popularity.

A lot of credit also 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.

The growth in values is reflected in transaction prices. The examples of Deccan Chargers and Delhi Daredevils are in front of us. The Deccan Chargers was kicked out in the year 2012 after they failed to pay their players. But after they taken over by Sun TV, players were paid more than double the amount that the previous owners did.

Something similar happened with the Delhi-based franchise, when the JSW group took over, with the valuation of the team changing drastically. Now, with two more teams joining IPL 2022, the numbers have touched the roof.

Below is the list of IPL’s most valuable teams:

1. Mumbai Indians (Value: $1.3 billion)

2. Chennai Super Kings (Value: $1.15 billion)

3. Kolkata Knight Riders (Value: $1.1 billion)

4. Lucknow Super Giants (Value: $1.075 billion)

5. Delhi Capitals (Value: $1.035 billion)

6. Royal Challengers Bangalore (Value: $1.025 billion)

7. Rajasthan Royals (Value: $1 billion)

8. Sunrisers Hyderabad (Value: $970 million)

9. Punjab Kings (Value: $925 million)

10. Gujarat Titans (Value: $850 million)