The Indian Premier League (IPL) is set to expand next season with the Board of Control for Cricket in India (BCCI) inviting bids for one of two new teams debuting in 2022, taking the number of franchises competing in the popular Twenty20 cricket tournament to 10.

Both BCCI and IPL will benefit from the planned expansion, but is it all good news for the league, whose brand value declined in 2020, the year of Covid-19. Experts say there are both pros and cons.

There is no denying that IPL’s brand value will increase with the addition of two new teams, said Lloyd Mathias, a business strategist and angel investor.

“The additions of the new team will add to the number of games, thereby adding revenue besides getting two new sponsors into play. Overall, this should add to IPL’s value and impact,” Mathias said.

With more matches, monetisation opportunities will increase and with higher consumption and more time spent by spectators on the tournament, the league’s brand value will rise, said analyst Karan Taurani.

Last year, the brand value of IPL, founded in 2007, dropped for the first time in seven years. Eight teams based in as many cities vie for tor the title — Punjab Kings (Mohali), Sunrisers Hyderabad, Mumbai Indians, Chennai Super Kings, Delhi Capitals, Rajasthan Royals, Kolkata Knight Riders and Royal Challengers Bangalore.

According to a report by consulting firm Duff & Phelps, IPL’s brand value in 2020 fell by 3.6 percent to Rs 45,800 crore from Rs 47,500 crore in 2019.

While two new franchisees from the 2022 season will enhance the IPL ecosystem’s value, Santosh N, external advisor at Duff & Phelps India Pvt Ltd, cited some looming challenges.

“There are 60 matches over 50 days and there is one match a day and two matches during the weekend. Then there are breaks before the knockout matches. Now, if two more teams are added and the (IPL’s) structure remains the same, then you are seeing 95 matches,” Santosh said.

Under the current structure of the league, all the eight teams play each other twice.

If all the matches have to be squeezed in, will the league become a three-month event or will more matches be scheduled in a day, he wondered

“If more matches are scheduled then there will be 4 PM matches during weekdays. So, if BCCI decides to close 90 matches in 60 days, while it will be a positive as there will be a 50 percent jump in number of matches, I don’t think the value of IPL will jump by 50 percent because the per match value for 4 PM matches is significantly lower than prime time match on a weekday or weekend,” he said.

Whether a broadcaster will be ready to pay Rs 50 crore per match, which the current official broadcaster Star India pays to BCCI, if more matches take place at 4PM on weekdays is debatable, Santosh said.

“The increase in value may not be proportionate to increase in number of matches,” he said.

Adding to this, Mathias said given that the days available to play the IPL is fixed there will be logistical challenges. “Also, with the increase in the number of games the broadcaster may renegotiate the broadcast rights,” he said.

Another aspect Mathis pointed to is impact on franchises’ brand value.

He said while the format is yet to be decided, it is unlikely that the number of games would be reduced.

“However, the games per franchise may come down and this may lead to some shortfall in revenues of some franchises,” he said.

Santosh said that if IPL’s structure changes, instead of all teams playing each other twice, there may be two groups.

“At a franchise level this could have a negative impact considering a team like Mumbai Indians will play 10 matches instead of 14 and that would mean their sponsorship revenue comes down,” said Santosh.

If we look at the last IPL season, franchises experienced a dip in their brand value with the Mahendra Singh Dhoni-led Chennai Super Kings seeing a sharp fall in value by 16.5 percent from Rs 732 crore in 2019 to Rs 611 crore in 2020.

Because of the coronavirus disease’s impact, individual franchises experienced a reduction in their brand values last year as sponsorship revenue dipped, and gate receipts and food and beverage (F&B) revenue declined.

Covid-19 has brought in many changes to the league, resulting in loss of value for both the league and the franchises, the outcome of the addition of two new teams remains to be seen.

“Whether (IPL’s) value remains the same or will it jump, there will be clarity when we know at what sort of terms the new teams will come in,” said Santosh.


Indian Premier League to Expand to 10 Teams in 2022, Will It All Be Good News
Source: Trend Updates Article