Mumbai Indians (MI) enjoy the privilege of being a crown jewel among the Indian Premier League(IPL)’s pool of teams, by being the IPL’s most valuable franchise at $1.3 billion (Rs 9968 crore approximately). It now has a net worth of more than six MLB teams, 27 NHL teams and every MLS team.
A Forbes report published these statistics today (26 April), at a stage when the Mumbai Indians have failed to secure even a single win out of the eight matches that they have played. The five-time champions became the first IPL side to have such an embarrassing record to their name.
As per the report, alongside being evaluated at $1.3 billion, they also boast of revenue of $33 million (Rs 254 crore approx) and an operating income of $5.5 million (Rs 42.17 crore approx.).
The evaluation of the other IPL teams are:
Kolkata Knight Riders {$1.1 billion (Rs 8433 crore approx)}
Lucknow Super Giants {$1.075 billion(Rs 8242 crore approx)}
Delhi Capitals {$1.035 billion (Rs 7935 crore approx)}
Royal Challengers Bangalore {$1.025 billion (Rs 7858 crore approx)}
Rajasthan Royals {$1 billion (Rs 7667 crore approx)}
Sunrisers Hyderabad {$970 million (Rs 7437 crore approx)}
Punjab Kings {$925 million (Rs 7092 crore approx)}
Gujarat Titans {$850 million(Rs 6517 crore approx})
Gold mine for investors
As per the Forbes report, the average value of franchises has grown from $67 million (Rs 513 crore approx for 8 teams) in 2008 to $1.04 billion (Rs 7973 crore approx) in 2022. This represents an annualised growth rate of 24 per cent, making it a gold mine for investors.
Two big reasons may be traced to the surge in IPL valuations, firstly the viewing audience pool and secondly IPL’s economic model.
In 2021, 400 million viewers watched the IPL on television while another 260 million streamed matches on online platforms.
Walt Disney subsidiary Star India’s television and streaming rights cost $2.4 billion (Rs 18,401 crore approx) over 5 years but the contract will end this year. The expectation is that the next round of media rights will be worth $6 billion to $7 billion ( up to Rs 53, 670 crore approx) over five years.
The IPL guarantees that every team is profitable virtually through its economic model In 2021, for example, average revenue for the eight teams was $35 million (Rs 268 crore approx), with operating income (earnings before interest, taxes, depreciation and amortisation) of $9 million (Rs 69 crore approx). Some 80 per cent of the IPL’s revenue in a typical year — and about 90 per cent during the pandemic — is derived from central revenues negotiated by the Board of Control for Cricket in India, or BCCI, the sport’s national governing body.
Read all the Latest News, Trending News, Cricket News, IPL Live Score, IPL 2022 schedule, IPL 2022 Points table and Entertainment News. Follow us on Facebook, Twitter and Instagram.