The IPL's brand value has dropped to $9.6 billion in 2025, marking a 20 percent decline from the previous year despite creating over 1.5 million direct and indirect jobs in India. A Brand Finance report released on December 9 attributes the fall to restive geopolitics, including Operation Sindoor, affecting nearly all associated brands except Gujarat Titans, which rose marginally by 2 percent. This echoes a D&P Advisory estimate of an 8 percent overall dip, raising questions about the sector's resilience amid external pressures.
Sharp Declines Hit Prominent Brands
Royal Challengers Bengaluru (RCB) and Chennai Super Kings (CSK) recorded double-digit drops, with CSK falling 24 percent to $93 million after a challenging season marked by leadership changes and a poor finish. RCB, despite rising to second in rankings at $105 million, saw a 10 percent decline even after its first major success, partly linked to a stampede during victory celebrations outside M Chinnaswamy Stadium in Bengaluru that killed 11 people. Ajimon Francis, managing director of Brand Finance India, explains: “Valuation is a combination of many factors, one among them is the intangible factor of perception as well as how the future will pan out for the teams.” He notes negative sentiment from the incident and subsequent management reactions, questioning long-term sponsor commitment over governance and ethics.
Ownership Shifts Add Uncertainty
RCB faces a pivotal ownership transition, with Diageo placing it up for sale in a process due by March 31, potentially dampening current perceptions despite its strong fanbase and digital reach. Bhairav Shanth, co-founder of ITW Universe, a sports and media consulting firm, argues the uncertainty explains the dip but affirms: “The uncertainty [about the sale] is the reason why the value might have gone down a bit. But, fundamentally, as a brand, I don’t think RCB has lost its lustre.” Shiv Burman, founder of Burman Sports, points to sale discussions valuing it at $1.2-2 billion, suggesting deep financial assessments support higher market worth than reported valuations indicate.
Reliance on Key Figures and Sponsorship Bans
Brand narratives for RCB and CSK heavily depend on figures like Virat Kohli and MS Dhoni, whose influence drives fan engagement—a core valuation metric—though their active involvement may wane with age. Francis observes: “RCB played under Rajat Patidar last year, but the brand narrative was centred around Kohli.” Kohli tops Indian celebrities at $231.1 million brand value per Kroll 2024, yet the brands' futures hinge on transitions. A ban on real money gaming erased Rs1,500-2,000 crore in advertising, with Dream11 holding five prime sponsorship spots; past exits like crypto and Vivo show adaptability. Shanth highlights potential softening of media rights growth post-2027 due to Star Sports-Jio merger, but Burman counters that IPL's draw for broadcasters signals enduring strength amid evolving fan interactions.
Outlook Amid Broader Pressures
Francis emphasizes IPL's reach, covering 84-85 percent of India's population in a 100-day window, poised to attract new sponsors. While short-term hits from geopolitics, incidents, and regulations loom, historical recoveries suggest the dip may prove temporary as new revenue streams emerge.
