Arun Dhumal, chairman of the Indian Premier League (IPL), has downplayed concerns regarding a potential decrease in the valuation of the tournament’s media rights for the upcoming cycle. While Disney Star bought the current domestic television rights for $3.02 billion, Viacom18 acquired the streaming rights for $3.05 billion. With the IPL media rights now in the penultimate year of the 2023-27 cycle, Dhumal suggested that the valuation is likely to increase, rather than decline.
“There is a lot of consolidation that has happened in the media space. But when it comes to the IPL, there is no other property which has this kind of interest for any media company. The live sports content is outstanding. Every ball is an event,” said Dhumal, as quoted by the Hindustan Times.
“By the time we go for the next media-rights cycle, there will be a lot of interest for the existing players as well as new players who may come in. I do not see any reason for the value to go down. I feel it will add up in the next cycle because of the way the tournament has progressed and the value it creates,” he added.
Dhumal expressed confidence that the IPL will remain in high demand, even if the league shifts toward a subscription-based model.
“I do not think it will drop. People do not mind paying when it comes to quality. If you give quality content, there are many takers.” He added, “And the IPL is live content. Who would mind spending five, ten, or 25 rupees for a game? Compare that with paying hundreds of rupees for a movie, which is not live content. In a live game, you do not know what will happen until the last ball.”
Dhumal also suggested that franchises are profitable, highlighting the IPL’s revenue growth over the last three media rights cycles.
“Definitely, they (the franchises) are profitable,” Dhumal said. “If you look at the value the IPL has created over 18 editions, the growth has been significant.”
He further added, “So, it is not just a cricket tournament. It is a strong business model and a live entertainment product, driven by competitive cricket.”