Is IPL fit for the long run?

After having witnessed a steep fall in its long-term value of over a billion Dollars from its peak, IPL’s brand value has held steady at US$ 3.03 billion in 2013, (compared to US$ 2.9 billion last year).

The relative stability at these lower levels can be largely attributed to efforts being put in by the BCCI as well as the franchisees to bring consistency in the cricketing product, enhancing fan engagement and building loyalty through wide spread marketing efforts. The learning curve has been steep and some clubs seem to have cracked the code across various marketing, cricketing and business performance drivers.

With IPL’s franchisees entering the sixth year of their operations, they face an acid test of

commercial sustenance. No doubt, their destiny lies deeply intertwined with IPL’s as a whole. Brand Finance has evaluated each franchisee on the following three broad parameters: cricketing excellence, marketing excellence and corporate governance.

As the league tries to claw its way back with operational improvements, the equity (or trust) that is built with stakeholders will eventually determine the health of IPL’s long-term cash flows. Sweeping ethical infractions under the carpet is not an option.

The absence of transparency and accountability in the IPL ecosystem which drives trust and alignment amongst stakeholders remains to be addressed in full measure and lies beneath the waters as a significant unmitigated risk.

Whilst the short-term operational improvements are encouraging, they need to be aligned to the overarching strategy of what IPL really means for the emerging Indian identity and cricket as an international sport which can spread opportunity and value in a fair and equitable way.

IPL is a means towards this greater good and not an end in itself. Whilst all organisations go through highs and lows the real question to be asked is one of sustainability and endurance. Is IPL able to rise to its higher calling and is it fit for the long run?

These findings have far reaching implications on Sri Lanka’s own SLPL T20, which was hurriedly put together and launched in 2012. In the light of the issues that have been highlighted here, there is much that SLPL T20 needs to do, in order to build its credibility all the year round, and not just wait for the tournament to arrive.

All of these initiatives are critical to its long term success, in addition to building a loyal fan base by the franchisees. Building this trust across all the stakeholders (fans, team owners, players, sponsors and partners) is the key for sustaining this brand.

Brand Finance, the world’s leading independent brand valuation consultancy, advises strongly branded organisations on maximising their brand value through effective management of their brands and intangible assets.

Founded in 1996, Brand Finance has performed thousands of branded business, brand and intangible asset valuations worth trillions of Dollars. Its clients include international brand owners, tax authorities, Intellectual Property lawyers and investment banks. Its work is frequently peer-reviewed by the big four audit practices and its work has been accepted by various regulatory bodies, including the UK Takeover Panel.

Brand Finance is headquartered in London and has a network of international offices in Amsterdam, Athens, Bangalore, Barcelona, Cape Town, Colombo, Dubai, Geneva, Helsinki, Hong Kong, Istanbul, Lisbon, Madrid, Moscow, New York, Paris, Sao Paulo, Sydney, Singapore, Toronto and Zagreb.