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Business Standard

Punjab Kings' valuation to see huge jump if it wins IPL Season 18 Trophy

Punjab Kings (PBKS) and Royal Challengers Bangalore (RCB) will both see their brand valuations increase after making it to the finals of the Indian Premier League's (IPL) 18th season. However, a win in PBKS's favour will cause a sharper jump in its brand value, though it will still remain lower than RCB's despite both teams not winning the IPL in the last 17 seasons. This story went to print before the tournament concluded. Brand valuation and industry experts collectively state that the final win will have a major impact on PBKS's valuation. 'The impact on RCB's brand valuation would be slightly lower, around a rise of 10 per cent, while for PBKS it would be bigger, around 15 per cent,' Santosh N, managing partner at D and P Advisory, a valuation and financial advisory firm, told Business Standard. 'This is because, irrespective of RCB's lacklustre performance in the first 17 years, the team has some big names like Virat Kohli, an extremely loyal fan base, and strong brand recall. Hence, they have many sponsors.' He added that RCB's valuation is almost in the top three spots out of the 10 IPL teams. As a result, RCB comes under the premium range of teams, which is not the case for PBKS. For RCB, this is their first final appearance in nine years, and for PBKS, their first in 11 years. 'For Punjab, I think the impact would be bigger because they're a smaller team and their valuation base is smaller too,' he noted. According to the IPL Valuation Study 2024 released by Houlihan Lokey, a global investment bank and financial services firm, RCB ranks second in both brand value and business value, with a brand worth $227 million. PBKS ranks ninth in brand value with a total of $101 million and eighth in business value. This data does not account for the latest changes in brand value after the tournament's conclusion. Similarly, Ajimon Francis, managing director at Brand Finance, a valuation and strategy consultancy, and Santosh Desai, managing director and CEO of Futurebrands India, corroborate the significance of a PBKS win on its overall valuation and long-term brand growth. 'The impact on PBKS will be huge as they have underperformed for years. This win (if it happens) will be a big booster for the team's brand valuation. For RCB, it won't make a sizable impact, as the team has come close to winning multiple times in previous seasons, which also means they received some prize money. Also, their big fan base and merchandise sales contribute significantly to RCB's valuations,' said Francis. Francis emphasised that if RCB manages to win, it will be a testament to what the team can achieve when playing collectively rather than relying on superstars like South African cricketer AB de Villiers, Jamaican cricketer Chris Gayle (former RCB player), and Virat Kohli. RCB's brand value rose 67 per cent to $117 million and was ranked the third most valuable brand, according to a Brand Finance report released in December 2024. The report stated that due to IPL's huge global popularity, four teams — Chennai Super Kings (CSK), Mumbai Indians (MI), Kolkata Knight Riders (KKR), and RCB — all crossed the $100 million brand value milestone for the first time last year. 'I think if Punjab (PBKS) wins (the IPL final), it will be an emphatic step forward in building a stellar association with fans and, in turn, brand loyalty and sponsorships. That's because they don't have as robust a following as Royal Challengers (RCB),' said Desai. He added that valuations for RCB and PBKS come later. If PBKS wins, it will play a crucial role in forging a core group of players who can ramp up its brand equity. Agreeing with Desai, Santosh from D and P Advisory said Tuesday's win for PBKS will help it gain more sponsors and attract bigger names to the team in the future. 'Punjab Kings making the final again after 11 years is a testament to the strong leadership of Shreyas Iyer. He is a charismatic and calm captain who can be the face of the franchise for years to come, and brands look for quality leadership and continuity when forging partnerships,' Nikhil Bardia, head of RISE Worldwide, said. Bardia added that the coming season should see many brands interested in partnering with the franchise, as they have played an exciting brand of cricket that has been entertaining for fans.