IPL Media Rights’ Revenue Growth is Much Higher Than America’s NBA, NFL
MUMBAI, (IANS) – On pricing, IPL per match is poised at a 70 percent discount to global averages, which may converge to 20-30 percent, led by IPL renewal in 2023-2027. Also, IPL media rights revenue CAGR at 10.4 percent is much higher than other global leagues’ – EPL, NFL, NBA – 8 percent CAGR since their inception, Elara Securities said in a report.
Thus, cricket, especially IPL, is approximating a trailblazer innings in India, Elara Securities said in a report.
The Global Sports industry has emerged as a mega-growth opportunity, with US sports’ media rights revenue CAGR at 8.2 percent through CY12-21, accounting 45.2 percent of 2021 global media rights revenue.
Of this impressive pie, soccer commands a lion’s share of 39 percent.
However, of all the sports, cricket rules the Indian market, with a stupendous 94 percent share in media rights vis-a-vis a mere 3 percent, globally.
Cricket may continue to enjoy such sheer dominance in India, the medium term, propped by large-lucrative properties such as IPL. Thus, expect IPL renewal to underpin media rights growth in India medium term.
The report said the digital segment, is the big delta for IPL. IPL teams’ (average of four teams) revenue CAGR is 14 percent historically.
Expect a 16 percent CAGR through FY22-28E. Further, media rights revenue forms 70 percent of total revenues and should sharply spike on rights renewal. Media rights in the earlier cycle (2008-17) had grown 4x to Rs 163.47 billion (2018-22).
Expect IPL media rights for the next cycle (2023E-2028E) to grow in 3-4x range (25 per cent growth due to more matches) to Rs 500-600 billion, led by the sharpest growth in digital media, the report said.