IPL Valuation Falls 11.7% Due to Weak Media Rights Performance

The study indicates that the next IPL media rights cycle might see a more cautious approach due to the merger between Star India and Viacom18, as well as the delayed involvement of tech giants in the bidding process.

Santosh N, managing partner at D and P Advisory, expects demand-side constraints in the upcoming media rights auction because two major sports content buyers have merged, and tech giants like Amazon, Meta, and Apple have yet to enter the IPL media rights bidding.

In addition to demand-side constraints, he noted that the failed merger between Sony and Zee has also contributed to the downward adjustment in IPL's valuation. Had the Sony-Zee merger gone through, it could have produced remarkable competition to the combined Star-Viacom18 entity.

Star India and Viacom18 obtained the IPL media rights for ₹48,390 crore for the 2023-27 cycle, an important increase from the ₹16,347 crore they spent for the 2018-22 period. In addition to Star and Viacom18, Sony and Zee also take part in the IPL media rights auction clasp in June 2022. The merger between Reliance Industries-owned Viacom18 and Walt Disney-owned Star India will create an influence force in sports broadcasting, with the new organization holding all major cricket rights, including those for the IPL, the International Cricket Council (ICC), and the Board of Control for Cricket in India (BCCI).

Despite this, BCCI Secretary Jay Shah recently revealed confidence that beginners will participate in the bidding for the next IPL media rights cycle, anyhow of the Star-Viacom18 merger.

"My job is to ensure the growth of the game and increase the brand value of Indian cricket. As it happens, the broadcasters come automatically," he had told ET.

The report says, the Mumbai Indians are the highest-valued IPL teams in 2024, followed by the Chennai Super Kings, Kolkata Knight Riders, Royal Challengers Bangalore, Delhi Capitals, Gujarat Titans, Sunrisers Hyderabad, Lucknow SuperGiants, Rajasthan Royals, and Punjab Kings.