20-30% increase in IPL media rights will not be surprising: Mohit Burman

Punjab Kings co-owner Mohit Burman believes the recent winning bids for two IPL franchises worth billions of dollars will have a positive impact on the next media rights cycle, and an increase of 20-30 per cent will not surprise him.

The existing media rights cycle from 2023-2027 fetched an eye-popping Rs 48000 crore (roughly $6.2 billion as per the exchange rate back then).

While the number for television rights could go down, the digital rights value is expected to go up drastically. Rajasthan Royals and Royal Challengers Bengaluru recently attracted successful bids from new investors for close to $2 billion each ($1.65 billion and $1.78 billion, respectively), and Burman said that is bound to drive up the media rights value.

“It would be speculative to put an exact number on it right now because the media industry itself is evolving very quickly. The dynamics between television and digital are changing every year, and consumer behaviour is shifting rapidly toward mobile and streaming-first consumption,” Burman said.

Burman termed the engagement consistency of IPL as a big confidence booster.  “But what gives confidence is the IPL’s consistency. Very few sports properties globally deliver this level of engagement year after year. It continues to attract advertisers, massive audiences and strong digital traction. “So while growth rates may not always be linear, the long-term trajectory for the IPL remains extremely strong. A 20-30 per cent increase in the media rights cycle would not be surprising,” said Burman, who holds a 48 per cent stake in Punjab Kings. According to Burman, the global investor interest and the investment attracted by teams put the IPL in the same league as the NFL, EPL and NBA.

“These valuations are not built only on current revenues, but on the long-term potential of the league as a sports and entertainment property. IPL today is among the world’s premier sporting leagues in terms of engagement, reach and commercial value, so naturally the market is recognising that.

“Investors today are looking at IPL not only as a cricket tournament but as a long-term sports, media and entertainment asset. What is especially significant is that these valuations are now being benchmarked against global sporting leagues. Earlier, Indian sports properties were largely valued in isolation.

“Today, IPL franchises are being spoken about in the same breath as teams from leagues like the NBA, EPL and NFL. That shift itself is a huge statement about the IPL’s global standing,” said Burman, who is also the Chairman of Dabur India.

Burman feels there is a strong link between valuations of teams and media rights. “There is definitely a psychological and commercial linkage between franchise valuations and media rights valuations.

When investors are willing to commit such large sums for franchise ownership, it signals a strong belief in the future earning potential of the league.

“Broadcasters and digital platforms take note of those signals because ultimately their investments are also based on long-term audience growth and monetisation opportunities,” he said.

IPL should now focus on deepening engagement and building a year-round ecosystem, Burman said. The expansion of IPL in terms of the number of games will happen when there is a bigger window, but more work can be done on fan engagement and building a stronger year-round ecosystem.

The IPL’s current window is a little over two months, much shorter than the likes of the EPL, NBA and NFL. So, what should the IPL do to maximise its growth potential?

“I think the IPL’s next stage of growth has to go beyond just adding more matches or increasing revenues. The league has already achieved extraordinary scale domestically. The focus now should be on deepening engagement and building a stronger year-round ecosystem.

“One major opportunity is global fan development. Today, IPL franchises have followers across the world because cricket audiences are no longer limited by geography. Digital platforms have made teams global brands. The league can further strengthen its international footprint through fan events, content collaborations and overseas engagement strategies,” said Burman.

More games of more teams in the IPL, what would be Burman’s preference? The number of matches is expected to go up from 74 to 94, but that could not happen in the current window. But post 2027, the number of games is likely to go up, but it is heavily dependent on international cricket commitments.

“With 10 teams, the current range of games is probably sustainable, perhaps with a calculated increase over time if scheduling allows. But cricket is different from many other global sports because players also have significant international commitments.

“Workload management is becoming an increasingly serious issue, especially with so much cricket being played across formats and leagues. As for adding more teams, I think the IPL is in a very healthy position right now with 10 franchises. Expansion should happen only when there is confidence that talent depth, scheduling and commercial demand can support it,” he added.