PLAYING WITH ASTRAIGHT BAT

A Concise Report on brand values inthe Indian Premier League

June 2016

Image source Getty Images

Duff & Phelps 2

Table of Contents

Contents Page No.

Foreword: Playing with a straight bat 3

Summary of Brand Values 4

The Juggernaut rolls on! 5

Sports in India – The game ischanging!

7

Understanding Brand Value in theIPL

9

Valuation Approach andMethodology

11

Conclusion: Heading in the rightdirection

12

A Concise Reporton Brand Valuesin the IndianPremier League

Duff & Phelps 3

FOREWORD

Playing with a straight bat

Dear Readers,

It gives me great pleasure in welcoming you to the third edition of our annual study ofIndian Premier League (“IPL”) franchisee brand values.

This IPL season has drawn attention for all the right reasons with a relativelycontroversy-free tournament, coupled with some scintillating on-field performanceswhich have brought the spotlight back to the game.

Over the years, we have seen multiple instances of scandals surrounding the premiersporting event of the country, but in almost every single year, the IPL has come outstronger and more popular than before. However, this year the added bonus and a majorboost to the Brand IPL has been a controversy-free IPL season. Also, the IPL Fan Parksinitiative, which saw footfalls of 15,000 to 20,000 spectators every weekend, was a hugehit in the Tier 2 and Tier 3 cities. The other initiatives such as Twitter match hashtagtrends, IPL Selfie trends, player battles and the Facebook “Support Your Team” initiativealso ensured that the fans were hooked on the IPL.

Before the start of the tournament, there were apprehensions about how Brand IPLwould survive the tumultuous prior 12 to 15 months which included the suspension oftwo popular franchisees - Chennai Super Kings (CSK) and Rajasthan Royals (RR) fortwo seasons as well as Pepsi terminating its association with IPL.

On the contrary, Brand IPL not only came out of these controversies relatively unscathedbut also surged forward to prove that it is the most successful cricketing league in theworld and one of the premier sporting events across the globe.

The Vivo title sponsorship deal was 26% higher than the Pepsi deal. Sony completelysold out its ad slots for the IPL season even before the first ball of the tournament wasbowled (despite hiking ad rates by nearly 15%). These along with the recent news ofHotstar’s viewership touching 100 million (a jump of nearly 45% from the previousseason), suggest that Brand IPL’s popularity is not only intact but is in fact increasing.

The above evidence is also reflected in our valuation analysis. The value of Brand IPLhas increased to US$ 4.2 billion from US$ 3.5 billion, even though the US$-INR currencyhas depreciated by nearly 10%. For our analysis this year, we did not value Rising PuneSupergiants (RPS) or Gujarat Lions (GL) due to lack of visibility on their association withIPL beyond IPL Season 10 when CSK and RR are expected to come back after servingtheir suspensions. Royal Challengers Bangalore (RCB) were the biggest gainers inpercentage terms with a 31% increase in their brand value over last year’s value.SunRisers Hyderabad (SRH) also gained nearly 17% value while Kings XI Punjab(KXIP) and Kolkata Knight Riders (KKR) lost nearly 24% and 10%, respectively, of theirlast year’s brand value.

As an aside, we are happy to announce that following the global merger of AmericanAppraisal with Duff & Phelps, we have fully transitioned our brand to Duff & Phelps fromAmerican Appraisal in India.

We look forward to your feedback.

Varun Gupta

Varun GuptaManaging Director

Duff & Phelps India

Duff & Phelps 4

Brand Value(2016)

$78mn

Brand Value(2015)

$72mn

Brand Value(2016)

$77mn

Brand Value(2015)

$86mn

Brand Value(2016)

$67mn

Brand Value(2015)

$51mn

Brand Value(2016)

$41mn

Brand Value(2015)

$35mn

Brand Value(2016)

$34mn

Brand Value(2015)

$34mn

Brand Value(2016)

$31mn

Brand Value(2015)

$41mn

Mumbai IndiansRank: 1

Previous Year’s Rank: 2

Kolkata Knight RidersRank: 2

Previous Year’s Rank: 1

Royal Challengers BangaloreRank: 3

Previous Year’s Rank: 4

SunRisers HyderabadRank: 4

Previous Year’s Rank: 7

Delhi DaredevilsRank: 5

Previous Year’s Rank: 8

Kings XI PunjabRank: 6

Previous Year’s Rank: 6

Image source Getty Images

IPL VALUE CREATIONValue generated by the IPL as a businessUS$ 4.2 BILLION

8%

-10%

31%

17%

0%

-24%

SUMMARY OF BRAND VALUES

19%

Duff & Phelps 5

INTRODUCTION

The juggernaut rolls on!

No other brand would have survivedthe onslaught that Brand IPL had toface since its inception. Conflicts ofinterest, allegations of match / spotfixing, couple of team owners and afew players being banned for life,allegations of professional misconductby certain office bearers among otherissues eventually led to the highestcourt of the country stepping in toclean up the taint from the nation’sfavourite sport by constituting theJustice Lodha Committee. The after-effects of these controversieseventually led to the banning of CSKand RR from participating in thetournament for two years.

However, the effects of thesecontroversies had very little impact onthe spectators and the advertisersalike with the official broadcaster,Sony Pictures Networks India (SPN),garnering a record INR 1.2 billion inadvertising revenues (a growth of20% over its last year’s ad revenue).SPN also sold its entire ad inventorybefore the start of the tournament,which was remarkable.

More evidence of the strength ofBrand IPL was Vivo Mobile’s deal tobecome the title sponsor for IPL bypaying INR 1,000 million a year (a25% premium from the earlier deal)after Pepsi decided to prematurelyterminate its 5-year contract with IPL.

Many analysts predicted this year’sIPL to garner less spectator interestlargely due to an overdose of cricketas the ICC T20 Cricket World Cup hadconcluded just a week before the startof Season 9. Initially, the analysis didprove correct, with the first weekaverage Television Ratings (TVR) at3.50 dipping to the second lowest inthe history of the IPL as comparedagainst 4.50 during the first week ofSeason 8. There was also lower crowdattendance at the stadiums. However,both the fans’ interest in IPL and thecrowd attendance increaseddramatically after the initial slow start.IPL Fan Parks were a remarkablesuccess with each fan park getting astaggering 15,000 – 20,000 footfallson any given weekend.

Television no longer remains the onlyplatform to consume IPL- relatedcontent. Viewership on digitalplatforms (phones, tablets, computers,etc.) also increased multi-folds thisseason, an indication of the shift inpreferences and viewership. StarIndia’s Hotstar, which holds Internetand Mobile broadcasting rights for IPL,touched 100 million in viewership thisseason which more than doubled from41 million viewership at the end of IPLSeason 8. Moreover, more than 60%of viewers accessed the matches viatheir smartphones.

Sony PicturesNetworks India’s(SPN) advertisingrevenues grew by20% over last year.

IPL Fan Parks wasa tremendoussuccess with anaverage footfalls of15,000 – 20,000 ineach fan park.

500

790

1000

0

200

400

600

800

1000

1200

DLF Pepsi VIVO

Sponsors

hip

Fee

Per

Year

(IN

RM

n)

IPL Title Sponsorship Trend

58%

27%

2008 - 2012 2013 - 2015 2016 - 2017

Duff & Phelps 6

INTRODUCTION

As per data shared by Twitter India,IPL has become the fastest growingglobal sports league on Twitter with a300% growth, higher than UEFAChampions League (UCL) (239%),National Football League (NFL)(125%) and National BasketballAssociation (NBA) (99%). Nine out often Indian Twitter users are cricketfans, with cricket being one of the keyconversation drivers on their Twitterhandles. RCB were the mostmentioned team on Twitter withskipper Virat Kohli being the mostfollowed IPL player on Twitter.

Facebook also saw the highest everconversations on IPL this season with360 million interactions from over 30million users. Virat Kohli was the mosttalked about player on Facebook withGujarat Lions being the most talkedabout team during IPL Season 9. TheIPL Facebook page also grew by over2 million fans to reach 18.4 millionlikes.

Sports website, Cricbuzz.com,recorded a 40% jump during this IPLseason with 30 billion page views andviewers spending more than 24 billionminutes on the platform. Cricbuzz had14 million average active daily usersduring the IPL season, which jumpedto 19 million for the final matchbetween RCB and SRH.

There was also a 64x growth in IPLvideo views this season as comparedto the 2015 Season.

The phenomenal success of IPLSeason 9 was largely helped by acontroversy-free season and somescintillating performances on the field.

There was no surprise that the realwinner of IPL 9 was the game ofcricket.

So how does this impact the brandvalues of the various franchises? Thefollowing pages provide our analysisand detail our approach to theassessment.

27

41

100

0

20

40

60

80

100

120

2014 2015 2016

Vie

wers

hip

#(M

n)

Hotstar Viewership Trend

52%

144%

300%

239%

125%99%

0%

100%

200%

300%

400%

IPL UCL NFL NBA

Gro

wth

inL

ast1

Yr

Twitter Trend (Fastest Growing League)

IPL was thefastest growingsports league onTwitter with 300%growth.

RCB & Virat Kohliwere the mostmentioned team& player onTwitter during thisIPL Season.

IPL Facebook fanpage grew byover 2 millionfans during IPLSeason 9.

Duff & Phelps 7

BUSINESS OF SPORTS

Sports in India –The game is changing!

The Indian Sports sector is seeing aparadigm shift over the last couple ofyears. Until 7-8 years ago, organizedsport, outside of cricket, was limited tothe Olympics, occasional Internationalfootball matches, world championshipsin Badminton and the Davis Cup. TheIndian Premier League changed all ofthat and packaged cricket into aneasily digestible, advertiser-friendly,corporate partnered event. It was thefirst time that any sport in any formathad been embraced by the masses,and the business model clearlyworked.

Over the last couple of years, we havewitnessed an explosion ofcorporatised and organised sportingevents in the country, starting with thePro-Kabaddi League, the Indian SuperLeague, Indian Badminton League,Hockey India League and tennisleagues to name a few, each of whichhas seen success. It truly has been anunprecedented growth, fuelled byincreasing TV viewership, prime timead rates that rival the most populardaily television shows and even theopportunity to monetize brands thatwere previously unnoticed orunrecognizable.

The most successful league in termsof viewership has been the IndianPremier League (IPL), which followsthe English Premier League (EPL)format. The league has helped gainpopularity among women spectatorsand retain interest of cricketenthusiasts overall.

The Indian Super League (ISL) was arunaway success in its inauguralseason, with stadium attendancespegging it as the fourth best attendedleague among others globally. Theviewership wasn’t far behind the othersporting leagues, recording cumulativereach of 410 million in its first edition in2014 whereas the 2015 edition saw anincrease of 26% viewers.

The Pro-Kabaddi League (PKL) hasshown a 35% increase in TVviewership in the third seasonconducted earlier this year with acumulative reach of 189 millionviewers after the first two weeks of thetournament. The opening week’sviewership was 36% higher than thefirst week of Season 2. PKL scored bigwith youth audiences passionatelyfollowing the game, while women andchildren together continued tocontribute about 50% of theviewership. Viewership has alsoincreased on the digital front. Buoyedby success, PKL has decided to makethe event bi-annual with the secondleg starting in July 2016.

Sports broadcasters in India generallyearn a significant portion of theirrevenue through subscription unlikeGeneral Entertainment Channels(GEC), which are highly dependent onadvertisements. The market share ofIndia’s sports channels together isonly 4%, compared to 50% held byGECs.

In 2015, adspends from theICC World Cupand IPL 8 wereestimated to havecrossed INR 22 to25 billion.

In 2013, adrevenues from theIndian BadmintonLeague were INR0.9 billion and theHockey IndiaLeague were INR0.7 billion.

Duff & Phelps 8

Star Sports has expanded into eightchannels to showcase a variety ofdomestic and international leaguesand tournaments. Star Sports has alsoextended broadcasting rights forinternational hockey, as well as leaguematches, for the next three years.Sony, which also expanded to foursports channels, has secured thebroadcasting rights for majorinternational football tournaments overthe next 3-4 years along with itsongoing IPL rights.

Based on FICCI-KPMG Report onMedia and Entertainment - 2015, themedia spend on sports, primarilytelevision, is growing at aCompounded Annual Growth Rate(CAGR) of 14% from 2008 to 2013. InIndia, advertisements still account for60% of revenues of sports channels,mainly driven by cricket, whichaccounts for 80-85% of the totaltelevision sports media revenue. In2015, ad spends from the ICC WorldCup and IPL Season 8 were estimatedto have crossed INR 22 to 25 billion. In2013, ad revenues from IndianBadminton League were INR 0.9billion and Hockey India League wereINR 0.7 billion.

Overall advertising spends in India areexpected to grow at 12.6% to reachINR 490 billion in the next few years.The growth in 2014 was attributable toelections as well as advertising from e-commerce and telecom. In 2015, TVadvertising was the most prominent,accounting for 46% of the total spend.

The popularity of sports offerscorporates an effective, large-scaleplatform to connect with theircustomers.

There is a clear need by advertisers toexplore newer and more up andcoming sports leagues in India. TheISL and PKL have proved toadvertisers that there are multiplesports formats with immense potentialand not just the IPL. We could see adramatic shift in advertising budgetsas relevant endorsers try to takeadvantage of these new formats in thenear term, even as TV viewership ofthese new leagues continues to grow.However, these new leagues are farbehind the leader of the pack, IndianPremier League, and would need toshow consistent on-field performancesto ensure the spectators’ interest doesnot wane.

37.0%

38.0%

39.0%

40.0%

41.0%

42.0%

43.0%

44.0%

45.0%

46.0%

47.0%

-

500.0

1,000.0

1,500.0

2,000.0

2,500.0

'10 '11 '12 '13 '14 '15

Advertising Spend in India over the years

Estimated Spend (INR Bn.) % of Total Media Spends

Advertisementsaccount for 60%of sportsbroadcastingchannels’revenues in India.

Cricket contributesover 80% of totaltelevision sportsmedia revenues.

BUSINESS OF SPORTS

Duff & Phelps 9

BRAND VALUATION

Understanding BrandValue in the IPL

Great sporting brands across theworld have been built over severaldecades of fan following, successfulperformances, the ability of a team toattract great talent, and continuedassociation with large companies,partners and sponsors. Teams like theNew York Yankees, Dallas Cowboys,Manchester United, Chelsea, RealMadrid, Barcelona and Los AngelesLakers, among others, have becomemuch sought after brands byadvertisers and represent brandvalues in the billions of dollars.

In the IPL, brand value is derived froma wide variety of factors, keeping inmind the Indian viewer’s associationpreference for vernacular proclivities,cricketing knowledge and celebrityinfluence. Accordingly, drivers ofbrand value in the IPL can becategorized as follows.

Management Strength and On-FieldPerformance

For an advertiser / sponsor, beingassociated with a team that isconsistently performing at the top ofthe table is a key factor in assessingbrand potential. A look at the largestdeals in the sponsorship space notonly in the IPL, but also internationally,will reveal that teams that are betteron-field performers garner highersponsorship values. In the IPL, theestimated lead sponsorships (leadchest and limited player promotions)were valued at a 100% premium for atop-ranked team over its lower-rungpeer.

Of course, a team that consistentlyperforms at the top of the table is notthe result of a pre-fixed formula. Teammanagement plays an important rolein squad selection, talent acquisition,performance management andadministrative support. Clearly, awinning team is the result of a winningcombination of several factorsincluding the strength of themanagement team.

Marketing Strategy

Based on our analysis, it is estimatedthat on average, franchises spendanywhere between 15% and 25% oftheir revenues towards marketing andpromotion. Some teams, like KolkataKnight Riders, who investedsignificantly towards brand building inthe early part of their IPL existence,have seen fantastic support fromsponsors and partners. IPL events,television advertisements,merchandising, in-stadium giveawaysand other such promotional activitiesdriven by the franchise go a long wayin garnering exposure and support,translating into brand gains.

Merchandising in the IPL is presentlyin a nascent stage and mostfranchises are still coming to termswith the best possible way to monetizedifferent streams. We believe that thiswill be a game-changer for franchisesthat are able to crack this difficultmarket and identify new monetisationstreams by tapping into their existingfan base.

In the IPL, brandvalue is derivedfrom a wide varietyof factors, keepingin mind the Indianviewer’sassociationpreference forvernacularproclivities,cricketingknowledge andcelebrity influence.

Duff & Phelps 10

Celebrity Influence and MarqueePlayers

The presence of key marquee playersand celebrity owners in a franchisebrings additional popularity to theindividual team brands. A case in pointis RCB, whose brand value has soaredpiggybacking on the likes of ViratKohli, Chris Gayle and AB De Villiers.However, it may be added that cricketis a team game and no one personcan change the fortunes of a badlyperforming franchise. In addition, whilefranchise brands may be able to rideon the brand of a celebrity owner or amarquee player, they are also open tothe risk of damage in cases where thesaid individual is embroiled in acontroversy, even if that controversy isoutside of the IPL.

Geographical Location

The geographical location of thefranchise determines the population ofits support base and is an importantfactor in assessing the strength of anindividual team brand. In general, it islikely that a higher density of teams ina particular region of the country willsplit the fan base and impact the abilityof a team to garner support outside ofits immediate location. While theintention of the IPL was never to splitsupport on the basis of vernacularlines, this does seem to be the currentsituation with every team in the currentseason belonging to a different state ofthe country. While this makes supportof each team more intense, it remainsto be seen how support will beimpacted once more franchises areadded to the current format.

Governance and Transparency

Over the last year we have found thatbrand perception is negativelyimpacted for teams, or promoters ofteams, accused of professionalmisconduct or embroiled in acontroversy.

Mumbai Indians were voted as thebest performing team when it comesto effectiveness and transparency oftheir management team along with ahigh perceived brand strength. Ourassessment of the brand values of thevarious franchises takes intoconsideration the effectiveness andtransparency of their managementteams.

Social Media Engagement

The ability of a franchise to engagefans on a regular basis, particularlyduring the IPL, has been crucial inbuilding positive brand perception.Over the last few seasons, we haveseen dedicated Twitter and Facebookcampaigns organised by thefranchises with the intention ofengaging fans regularly and keepingthem up to date with the events of theindividual teams. RCB’s PlayBoldhashtag and the RCB Insider showwith Mr. Nags were a major hit onsocial media. We have givenadditional weights to teams that havea large social media presence inestimating the brand values of thevarious franchises.

The social media ranks indicated forthe individual franchises are providedon the side of this page.

Social MediaRankingbased on thefranchisessocial mediafollowing

SocialMediaRank

CombinedFacebook,Twitter &InstagramFollowers

(Mn)

KolkataKnightRiders

1 15.8

MumbaiIndians

2 12.5

RoyalChallengersBangalore

3 10.3

Kings XIPunjab

4 8.8

SunRisersHyderabad

5 4.9

DelhiDareDevils

6 4.5

Rising PuneSuperGiants

7 1.5

GujaratLions

8 0.9

The ability of afranchise toengage fans on aregular basis,particularly duringthe IPL season,has been crucialin building positivebrand perception.

BRAND VALUATION

Duff & Phelps 11

METHODOLOGY

Valuation Approach andMethodology

There are several methods andtechniques that can be applied inestimating the value of a brand, themost popular of which is the Relieffrom Royalty Method. The Relief fromRoyalty method is premised on theroyalty that a company would have topay for the use of the brand/trademark if they had to license it froma third party. Here, royalty isexpressed as a percentage of salesfor its use. The present value of theafter-tax cost savings (i.e., royaltyrelief) at an appropriate discount rateindicates the value of the brand.

The first step in the valuation of theIPL franchise brands was to estimatethe future revenue expected fromthese brands. We developed adetailed business model for each ofthe individual franchises afterextensive research and limiteddiscussions with industry players. Themodel was built keeping in mind thevarious contractual revenue sharingagreements between the Board ofCricket Control in India (BCCI) and theIPL franchises. Each business modelwas developed keeping in mind thefranchise’s current performancestanding, its brand rank and otherqualitative factors which could impactits brand value.

The second step in the brandvaluation would be development of thefair royalty rate.

As part of our analysis, we researcheda number of Brand and Trademarklicensing arrangements acrossinternational sporting leagues such asthe English Premier League, theNational Football League (NFL), theNational Basketball League (NBA),Major League Baseball (MLB), etc., inconcluding an appropriate royalty ratefor the valuation of the IPL franchisebrands. This estimated royalty rate isapplied to the appropriate level ofrevenues of each franchise tocalculate the royalty savingsattributable to the brand owner. Theroyalty savings are then tax-affectedand discounted to present value usingan appropriate required rate of returnto estimate the value of individualbrands.

The Relief fromRoyalty method ispremised on theroyalty that acompany wouldhave to pay for theuse of the brand /trademark if theyhad to license itfrom a third party

Duff & Phelps 12

CONCLUSION

Heading in the rightdirection

Based on our analysis, the total valueof the IPL has grown by 19% over thelast five quarters to US$4.16 billion(immediately after Season 9) fromUS$3.54 billion (immediately beforeSeason 8) even though the currencyhad depreciated by nearly 10% sinceour last year’s valuation. As a part ofour analysis, we realised that while thebrand value is a significant componentof business value of individualfranchisees, there are several otherfactors which drive the business valueof the IPL. Over the last few years, wehave seen several transactions wherestakes in a few IPL franchisees werebought and sold at premiums of over100% to values originally bid for duringthe first auction. This year we saw thefirst-ever reverse bidding process. Thenew IPL franchises RPS and GLdecided to forego their share of centralsponsorship revenue and in-turn paidBCCI INR 160 million and INR 100million per year to acquire the rights ofthese franchises for a period of twoyears. For most people, this wouldn’thave made much business sense, asthe two new franchises end up losingalmost INR 100 crores a year and willalso lack visibility beyond the nextseason. However, the owners arelooking at it more from a brandbuilding and visibility point of view andtreating the cost to acquire andmaintain the teams as an investmenttowards building their respectivemother brands.

The individual IPL franchisee brandshave mixed results since our lastvaluation in April 2015.

Royal Challengers Bangalore were thebiggest gainers this year with theirbrand value soaring by 31% to US$ 67million on account of their on-fieldperformances plus the marketability oftheir battery of stars. SunRisersHyderabad’s brand value, buoyed bytheir success in IPL 9, saw a 17%jump, whereas, Mumbai Indiansmaintained a steady 7% increase intheir brand value to top the charts withUS$ 78 million. However, Kings XIPunjab were the biggest losers in thisedition as nearly 24% was shaved offtheir 2015 brand value of US$ 41million, largely due to poor on-fieldperformances coupled with lack ofhome and away crowd support as wellas the lack of marquee Indian player/sin their line-up. KKR also lost nearly10% of their brand value though it stillconsolidated the second position withUS$ 77 million as brand value. Duff &Phelps did not value the two newfranchisees since they have novisibility at this stage beyond IPLSeason 10.

We estimate that on average thebrand value of the top four franchisescontributes around 30% towards theiroverall business value, whereas thebrand value contributed less than 20%for Kings XI and Delhi Daredevils’overall value. The business value ofan individual franchise is dependenton its on-field performance, presenceof marquee players in the team,marketability factor of the team, fans’involvement with the team,advertisers, sponsors and ad agenciesperception of brand, social mediaoutreach and the effectiveness andtransparency of its management.

Our analysisindicates that thetotal value createdby the IPL hasgrown by 19% overthe last one year toUS$4.2 billion fromUS$3.5 billion in2015

Santosh NDirector

Duff & Phelps India

Duff & Phelps 13

For the BCCI, the IPL remains amoney spinner beyond expectations.The IPL has come a long way since itsinception in 2008, steadily expandingits foothold in the global sportingscene. The value created by the IPL insuch a short time is significant due tothe minimal initial investment by BCCI.With almost all sponsorship deals andbroadcasting rights expiring after IPL10, it will be interesting to see thequantum of growth all these deals willsee given that the sponsorship dealsacross the globe have seen aremarkable increase.

The new broadcasting rights issue isone of the keenly watcheddevelopments in the IPL. The BCCI isclearly set for a huge windfall. Wecould be looking at a televisionbroadcasting deal of record proportion

in India. Some food for thought wouldbe the 83% increase in the annualbroadcasting fees for the EPL paid bySky and BT for a league whoseviewership has been increasing at afraction of the growth seen in the IPL.The other leagues, such as MLB andthe NBA, have also set precedencewith a consistent multi-fold growth intheir broadcasting rights.

IPL has not only become a premiersporting event in the country but hasestablished itself as a major sportingbrand in Asia and is well on course tobecoming one of the premier globalprofessional sporting brands rivallingthe likes of EPL, La Liga, NFL and theNBA.

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1992-97 1997-01 2001-04 2004-07 2007-10 2010-13 2013-16 2016-19DealA

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EPL Domestic TV Rights

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Before 2007 2007-16 2017-2025Ye

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The newtelevisionbroadcastingrights areexpected to set amajor milestonein the Sports andBroadcastingIndustry.

CONCLUSION

Duff & Phelps 14American Appraisal India Private Limited 14

Limitations to the studyThe analysis and estimates presented in this report are based on extensive research on secondary sources ofinformation, limited primary discussions with industry participants and the results of our IPL Sponsorship Survey.We have not undertaken any independent verification or carried out any due diligence on the data used orconsidered, nor have we verified its factual accuracy in the current context. Brand values may differ based onactual information available with individual teams. The conclusions provided in this report shall not be construedas investment advice and the valuations provided in the report shall not be used for any other purpose other thangeneral research and media consumption. Each of Duff & Phelps and its affiliates expressly disclaims all liabilityfor any loss or damage of whatever kind which may arise from any person acting on any information and opinionsor analyses relating to the valuations contained in this report.

The valuation of a business or intangible assets is not a precise science and the conclusions arrived at in manycases will of necessity be subjective and dependent on the exercise of individual judgment. There is therefore noindisputable single value and we normally express our opinion on the value as falling within a likely range.However, for the said purpose, we have provided a single value. Under normal circumstances, our assumptionsand methodologies are supplemented by discussions with the management and insights provided by them on themost likely course of business over the near term. Our current assumptions for the valuation are based oninformation derived and analysed from a combination of primary interviews and secondary sources. Accordingly,our assessment and estimates are based on market perceptions and most likely trends of growth for the IPLfranchises. Others may place a different value on the various brands.

All trademarks, trade names, or logos referenced herein are the property of IPL, BCCI and the respectivefranchises.

Editorial Team

Editor: Harsh TalikotiTeam: Jash Shah, Marut Kumar Mishra, Gaurav Kalro

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Varun GuptaManaging Director, Leader - Japan & Southeast AsiaVarun.Gupta@duffandphelps.com

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Santosh NDirector – National ManagementSantosh.N@duffandphelps.com

No.18, MPK Mansion, Guava Garden,Koramangala 5th Block,Bangalore - 560 095, IndiaTel - +91 80 6569 6340Cell - +91 99453 66221

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