How The Indian Premier League Is Primed For The Best Season Yet

Cricket: The Crown Jewel of Asian Sport

pti

Last week, the Indian Premier League (IPL) wrapped up its player auction for the 2022 season. Instead of an entry draft or free agency period like we are used to from North American leagues, the IPL operates differently. At the end of each season, teams select up to four players on their roster to keep for next year. The remaining players are then up for auction, where all teams have the opportunity to use their salary cap (purse) to bid for players and build their roster. It takes the concept of a fantasy keeper league and brings it to life. Before this piece becomes a tangent about how amazing an auction format would be in the NHL, NFL, NBA, or MLB - let’s take a quick look into the business of the IPL, and what is in store for the 2022 season.

The league was first introduced in 2008, playing a format known as Twenty-Twenty (T20) - a more commercialized format of cricket that lasts ~3 hours. The IPL was focused on taking this fast-paced style of cricket and infusing it with entertainment, under the lights and sounds of the Indian audience. 14 years later, the league’s brand value has boomed to $4.7 billion USD, up 7% from last year.

In the COVID era, the IPL has been postponed and relocated for the past two seasons, being played out without a large audience in Dubai and the UAE due to the spread of COVID in India. The brand value took a hit and dropped 13% in 2020. Looking ahead to the 2022 IPL, the league has big plans for their hopeful return to the diehard Indian fanbase.

2022 marks the entry of two new franchises, bringing the league total to ten. Teams in Gujarat and Lucknow (located in the state of Uttar Pradesh). The two states are in the top five TV markets in India, which contributed to the league’s increased brand value. Sponsors see the lucrative opportunities of having a partnership with the IPL - everything from the player of the game, the timeouts, and the scoring is sponsored. The league also has a title sponsor, being referred to as the TATA IPL 2022 on all official league messaging.

With the booming sponsorship opportunities, the most attractive asset the IPL has to sell is its TV rights. Conveniently, the IPL TV rights deal is expiring - and preparations for a bid are underway. Media business leaders in India, including Kunal Dasgupta, believe that the media rights of the IPL will exceed a value of Rs 40,000 crore ($5.3 million USD). The additions of the aforementioned Gujarat and Lucknow franchisees contribute to that figure. Companies including Disney (who own Indian streaming service Hotstar) are part of the media giants that are in the bidding for the IPL’s media rights.

When compared to USD or CAD, the numbers from the IPL seem elementary - minor league level at best for a North American market. However, for a league that has only existed for 14 years, the increase in value year over year is something to watch - and sponsorship deals and assets that the league has boasted for over a decade are important to keep an eye on for North American sports fans. With the NHL and NBA recently introducing equipment sponsorship (e.g. jersey patches) - something that the IPL has sold since its inception, there could be more sponsorship assets on sale in North American leagues that are inspired by the sports entertainment product that puts an emphasis on entertainment.

Published: February 18, 2022 - Issue 27 of The Sport Marketeer