IPL crosses $10 billion valuation to become decacorn: Details here
What's the story
The Indian Premier League (IPL) has become a decacorn, having crossed the $10-billion mark in terms of overall valuation.
As per a D and P Advisory report released on Tuesday, the league's current value stands at $10.9 billion.
Notably, it has recorded an astonishing growth of 75 % since 2020.
Lucrative deals with broadcasting giants have been instrumental to IPL's growth.
Here are further details.
Context
Why does this story matter?
A decacorn is a business with more than $10.0 billion in valuation.
The IPL has achieved the landmark within 15 years of its inception.
The inaugural edition of the competition was played in 2008, months after India clinched the inaugural ICC T20 World Cup title.
IPL has since gone from strength to strength with prominent players across the globe featuring in the competition.
Report
What does the report say?
In a report titled "Beyond 22 Yards", the D and P Advisory stated that IPL reached the massive landmark after selling its media rights for 2023 to 2027.
The league sold its media rights for $6.2 billion, recording a three-fourth jump in comparison to their previous cycle.
For the very first time, the rights were spread among different broadcasters.
IPL teams
Two new teams in IPL
Another factor that contributed to IPL's massive landmark was the addition of two new teams ahead of the 2022 season.
The two sides - Gujarat Titans and Lucknow Super Giants - were auctioned at a combined value of $1.6 billion.
Overall, the price tag of a team has witnessed a 16-fold jump from the inaugural season.
Currently, 10 teams are part of the IPL.
Facts
IPL is the second-largest sporting league
Meanwhile, the IPL is the second-largest sporting league globally in terms of broadcasting fees earned per match.
It is set to earn $12 million per match via broadcasting.
Only National Football League (NFL) is ahead of the Indian T20 competition in this regard, earning $17 million per match.
Notably, the number of IPL matches would gradually increase in the coming years.
Advertisement
What about the advertisement rates?
The Indian competition is significantly behind several global leagues as far as advertisement rates are concerned.
A 10-second slot for an ad during IPL 2022 cost nearly $20,000.
The ad rates of the National Football League, English Premier League, and Major League Baseball for the same time slot have been over $1,00,000.
The IPL would like to work on this area.
Women's IPL
Introduction of Women's IPL
The valuation of the IPL ecosystem is expected to enhance even further as 2023 would mark the start of Women's IPL.
Six teams will feature in the competition, with the base price of each side being Rs. 400 crore ($ 50 million).
This price is higher than many other cricket leagues around the world. Several prominent players will feature in the tournament.