Over 70% of IPL, WPL teams' revenue comes from media rights and sponsorships: Report
According to D&P Advisory titled IPL Valuation Report 2024, the central revenue pool for WPL is not expected to achieve the same rapid growth as IPL
In the evolving landscape of sports franchises, team valuation is increasingly driven by the burgeoning central revenue pool, a model that significantly impacts both the IPL and WPL.
This central pool, comprising media rights, title sponsorships, and associate sponsorships, accounts for more than 70-75% of a team's revenue, explained a report by D&P Advisory titled IPL Valuation Report 2024.
The exponential growth of this central revenue stream over the last few years has reshaped the financial dynamics of these leagues. Given the huge financial contribution of the central pool to a team's revenues, other team-specific line items often get ignored when considering future value creation.
While IPL franchises have successfully leveraged their brand strength to enhance team-specific revenues, these revenues still constitute a minor portion of the overall team income. As per the report, the primary driver of financial growth has been the central revenue pool, which has seen substantial growth due to the almost religious following of men's cricket in the country.
"In contrast, the WPL faces a different scenario. Given the nascent popularity of women's cricket, the central revenue pool for the WPL is not expected to achieve the same rapid growth as the IPL," said the report
Therefore, it becomes crucial for WPL teams to focus more on generating team-specific revenues to bolster their earnings.
Factors influencing team valuations
When it comes to on-field performance winning titles, consistent performance and value per players impact the team’s valuations.
Factors like ticket sales, merchandise sales, and sponsorship deals positively impact the fan base of a team.
Finally, match day revenue and prize money, broadcasting rights, and partnerships diversify the revenue streams to help team valuations.
Promoting values such as inclusivity, diversity, and sportsmanship resonates well with modern audiences. Campaigns that align with these values can create a positive brand image and attract fans who share similar values. For example, UP Warriorz's collaboration with the UN Women's Generation Equality campaign and partnership with Sisters in Sweat promote gender equality in sports.
Offering unique in-stadium experiences, interactive fan zones, and special events on match days can attract more spectators and enhance their overall experience. Innovations like virtual reality experiences, augmented reality interactions, and fan engagement activities can make matchdays more exciting. Social media platforms highlighting the journeys of WL players create a deeper connection with fans and enhance matchday experiences.
Collaborating with brands that align with the team's values and audience is crucial. Companies with women-centric products and services are particularly relevant. Delhi Capitals' partnership with brands like JBL and HDFC Life enhances their market presence and resonates with their target audience.
