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IPL valued at over $2-bn; KKR richest team

Shahrukh Khan's Kolkata Knight Riders may be struggling at the bottom in the second season of Indian Premier League, but in terms of brand value it is the richest team of the twenty-twenty cricket tournament, whose collective valuation has been now pegged at $2 billion.

At the same time, Rajasthan Royals, partly owned by another Bollywood star Shilpa Shetty, has emerged as the best team in terms of return on investment, although it is ranked third in terms of brand value.

The valuation exercise of the entire IPL franchise, along with the individual teams, have been conducted by UK-based international brand valuation consultancy Brand Finance Plc.

"The entire enterprise is valued at USD 2.01 billion," Brand Finance said, adding, its methodology took into account various revenue lines such as broadcasting, IPL sponsorship, team sponsorship, merchandising and gate receipts as well as the effect of performance, the catchment population of the city, the capacity of the stadium and the presence of iconic players.

Among the eight teams: Brand Value

Kolkatta Knight Riders - $42.1 million

Mumbai Indians - $41.6 million

Rajasthan Royals - $39.5 million

Chennai Super Kings - $39.4 million

Delhi Daredevils - $39.2 million

Royal Challengers Bangalore - $37.4 million

Kings X1 Punjab - $36.3 million

Deccan Chargers - $34.8 million



Earlier in terms of franchise fees:

Mumbai Indians - $111.9 million

Royal Challengers - $111.6 million

Deccan Chargers - $107 million

Chennai Super Kings - $91 million

Delhi Daredevils - $84 million

Kings X1 - $76 million

KKR - $75.1 million

Rajasthan Royals - $67 million

Despite propping up the bottom of this year's edition of the IPL taking place in South Africa, the Kolkata Knight Riders are the most valuable franchise brand at $42.1 million. Celebrity co-owner Shah Rukh Khan's hard-selling of the KKR brand has counteracted the team's poor on-field performance.

At the same time, Rajasthan Royal's brand value of $39.5 million at 59 percent of its franchise fee of $67 million, makes the reigning champions IPL's most profitable investment.

When determining our brand ratings, Brand Finance said: we have paid particular attention the ability of the franchises to generate advertising revenue, as well as the potential size of their support base. Rajasthan and Kolkata scored highly in these respective measures.Despite propping up the bottom of this year's edition of the IPL taking place in South Africa, the Kolkata Knight Riders are the most valuable franchise brand at $42.1 million. Celebrity co-owner Shah Rukh Khan's hard-selling of the KKR brand has counteracted the team's poor on-field performance.

At the same time, Rajasthan Royal's brand value of $39.5 million at 59 percent of its franchise fee of $67 million, makes the reigning champions IPL's most profitable investment.

When determining our brand ratings, Brand Finance said: we have paid particular attention the ability of the franchises to generate advertising revenue, as well as the potential size of their support base. Rajasthan and Kolkata scored highly in these respective measures.

KKR has been the ultimate Winner despite being a Loser in the tournament.......

 Top Comment : Dhruv Jaywant   | 12 May 2009 05:10 AM +0000
That implements the fact that Brand Managers are foolish and can be easily convinced the so called Advertising Gurus to put in there money in a dumpster. Why would a brand want to be associated with a complete loser is beyond me, i don't think any Brands associated with KKR would be happy today, irrespective of whether SRK is associated with KKR.
 
3 comments on "IPL is valued at over $2-bn & KKR is the richest team"
  Commented by  Makrand Bhave, Sales Promotion Manager, Camlin Limited    | 12 May 2009 08:53 AM +0000
Rating : +2 
Brands tie up with people who have the quality to entice people to buy what they endorse! The result is not material. Will NOKIA be a lost product in the market just because KKR is loosing its matches?? I dont think so. UB is supporting India F1 team. What will happen here? Will Team India F1 be able to win on each and every circuit?? I dont think we need to answer that!

Brand is associating to entice the consumers as the brand sees a fit with the endorser! When you buy a brand which is endorsed by Pooja Bedi (condoms) wont you go and at least take a look at the brand and the product?? You will. Purpose served!
  Commented by  Dhruv Jaywant, Head/VP/GM-Marketing, Franchising Association of India    | 12 May 2009 05:10 AM +0000
Rating : +1 
That implements the fact that Brand Managers are foolish and can be easily convinced the so called Advertising Gurus to put in there money in a dumpster. Why would a brand want to be associated with a complete loser is beyond me, i don't think any Brands associated with KKR would be happy today, irrespective of whether SRK is associated with KKR.   
  Commented by  Makrand Bhave, Sales Promotion Manager, Camlin Limited    | 11 May 2009 02:05 PM +0000
Thats brand SRK for you!! He has the midas touch... KKR is gold! 
Loosing sometimes is not the end of the world! It adds some dimensions to people who introspect and can develop an ability to turn it into something much better!
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richest team in ipl list from richest to poorest

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