Of IPL Stakes and the inherent brand valuation | Advantage Sports

Kings Punjab XI has more reports to file but the buyers are prepared to pay $300million for their 93% stake and get Preity Zinta as an ambassador for 7% stake as a partner. In the meantime, while India Cements has audited its stake in Chennai Super Kings for a brand valuation of $1 billion presumably based on the performance of the team in these three years. Of course, tho monetise this brand value the owners have to take the call to sell a stake to private parties or the public or leverage it as collateral to raise some serious financing for Cricket or for its own businesses.

Nevertheless, the difference between the two valuations shows a variation in brand perception and thence the methodology used to show case the brand value especially for a sports brand with high emotional attachments. The second valuation of course is not contingent to any deal but nevertheless holds value in terms of merchandise sales, gate and sponsorship receipts and also for conducting business with the owners in any area of cricket/ sports and business.

Also why limit Franchise valuations to annual sponsorship and gate receipts. Brand Valuation has to span the entire lifetime of the brand and each franchise is today averaging around $30 to $38 m in tangible revenues that translate to a $375 mn brand value at the very minimum. Also currently most have been financed by equity and convertibles but once the intangible value is showcased ( and we are ready to do the job with or without E&Y/PWC we can prefer more knowledge on the subject. As one Brand valuation methodology mentions ( inangiblebusiness.com) CSK captain Dhoni alone earns $37 m in endorsements, $10million a year and he is a part of Chennai Super Kings