Kolkata Knight Riders is the most valuable IPL brand due to SRK effect
Royal Challengers Bangalore saw the least increase in brand value.
Published - May 30, 2017 11:54 am | Updated - May 30, 2017 11:54 am
Last year, Kolkata Knight Riders (KKR) topped the list of Indian Premier League (IPL) brand value rankings. This year has not been any different for them. The numbers rose in their favor. According to a report published by the global corporate valuation, analytics, and strategy firm Brand Finance, KKR is now valued at $58.6 million after the recently concluded IPL, which is 23% more than their last year’s valuation.
IPL 10 winner Mumbai Indians is second in that list, with a valuation of $54.1 million. Last year’s champion Sunrisers Hyderabad have secured the third place with $46.5 million. Reports suggest that the fan appeal of KKR’s megastar owner Shah Rukh Khan is the main reason behind their mammoth brand value. Khan was able to establish many local and national sponsorships, all by his connections and influence.
What is Brand Value?
“The company arrives at a brand value on the hypothetical premise that a brand is an asset which can be transferred or lent for a consideration, which can be called a royalty or a license fee. It is the amount that such a transfer would command that determines the brand value,” said Ajion Francis, managing director of Brand Finance India. To make things more transparent, he added: “To put it simply, the brand value is created on the basis of how much of a franchise’s absolute revenue the brand hypothetically contributes.”
What about other teams?
All the teams saw a rise in their brand value in the tenth edition of IPL. Reports suggest that captain Rohit Sharma’s popularity and youngster Nitish Rana’s fiery performances were the reason behind Indians’ steep growth in brand value. For Sunrisers, the task was done by the smart social-media team and the team management. Delhi Daredevils took the fourth place with $40.5 million brand valuation while Kings XI Punjab was at fifth with a brand valuation of $36.2 million.
The lowest rise in brand valuation was seen by the Royal Challengers Bangalore. They dropped down to fourth position after just 4% rise in brand valuation from last year. The reason behind it involves no rocket science, as the report clearly suggests that the poor form of Kohli & Co. is the reason behind their low increase in brand value.