The economics of the IPL

An article in the Indian business paper, Mint, suggests that the IPL could be one of the 200 most valuable brands in the world, but warns that viewer fatigue is likely to become a serious problem.

We are already seeing data that suggest viewers are now being more finicky and watching only those matches that feature their teams. It is likely that IPL may not keep getting new viewers, but existing viewers may be spread across more matches. Since broadcasting revenues are so critical to profitability, this is a risk the IPL management will have to grapple with.

The Canadian newspaper, Globe and Mail, puts the valuation of the new franchises in perspective: the new teams are each worth at least US$100m more than the winners of the National Hockey League, the Pittsburg Penguins.

Gujarat may have lost out on its IPL dream with Ahmedabad failing to make the cut, but the state will still have a strong connection to the IPL going forward. A report in the Telegraph reveals that Gujarati businessmen have a 50% stake in the Kochi franchise which was picked up for the price of $333.33 million by Rendezvous Sports World Ltd.