Fans cheer from the stands during the Indian Premier League (IPL) Twenty20 final cricket match between Royal Challengers Bangalore and Punjab Kings at the Narendra Modi Stadium in Ahmedabad on June 3, 2025. (Photo by Arun Shankar/AFP) / – Image limited to editorial use – strictly no commercial use – (Photo by Arun Shankar/AFP via Getty Images)
Arun Shankar AFP | getty images
Indian cricket is becoming an increasingly popular asset for investors looking to cash in on the booming business of the subcontinent’s most popular sport.
In less than a month, the Indian Premier League, or IPL, has sold two of its franchises to investors at valuations exceeding billions of dollars, the latest being Rajasthan Royals which was bought this Sunday, valuing it at $1.65 billion.
A consortium of American investors led and supported by Kal Somani Rob Walton of Walmart Group According to multiple media reports, Rajasthan was in the race to acquire Royals but lost out to global steel giant Lakshmi Mittal and Indian vaccine tycoon Adar Poonawala.
somani’s group expressed disappointment According to ESPN, due to his inability to become a franchise owner. “We were all inspired by the opportunity to help take the IPL to new international heights,” the consortium reportedly said.
In late March, Blackstone and a group of serial American sports investors David Blitzer acquired the IPL’s Royal Challengers Bangalore or RCB franchise in a deal worth $1.8 billion.
The IPL is a fast-paced, franchise-based cricket league launched in 2008 featuring a mix of top international and Indian talent. Played over approximately two months each year, it involves 10 teams, offering a mix of high-intensity cricket, celebrity ownership, entertainment and massive TV and streaming audiences.
promising returns
Experts say global investor interest in the IPL is rising due to the history of strong capital returns and the potential to scale up a franchise supported by nearly a billion fans.
“The IPL has become highly attractive to investors because it combines strong capital appreciation potential with stable, recurring cash flows,” James Walton, sports business group leader at Deloitte Asia Pacific, told CNBC in an email.
According to Deloitte, on a per match basis, the IPL is already the second most valuable sports league behind the NFL. The IPL is projected to be valued at $18.5 billion in 2025, compared to the NFL’s $227 billion and the NBA’s $165 billion, but NFL teams play 272 games, compared to the IPL’s 74 games, and the 30 NBA teams play 82 games per team each season.
Apart from cash flows and valuations, returns to investors have also been quite impressive. “Compared to global deal benchmarks, IPL returns stand out for its pace and growth profile,” Walton said, estimating that private equity firm CVC Capital has earned a 350% return. last year When it sold its 67% stake in IPL franchise Gujarat Titans. CVC had Gujarat Titans acquired In 2021.
AHMEDABAD, INDIA – June 03: Virat Kohli of Royal Challengers Bangalore lifts the IPL trophy with teammates after the team’s victory in the 2025 IPL Final match between Royal Challengers Bangalore and Punjab Kings at Narendra Modi Stadium on June 03, 2025 in Ahmedabad, India.
Pankaj Nangia Getty Images Sport | getty images
Take the case of RCB, a franchise that has a huge fan base despite winning the league only once since its inception.
After being sold for Rs 166 billion in March, RCB returned 37 times the invested capital. Former United Spirits owner and Indian businessman Vijay Mallya has recently revealed Bought RCB for 4.5 billion Rs. In 2013, when Diageo acquired United Spirits, ownership of RCB was transferred to the liquor maker.
“The valuations of (IPL) franchises have increased manifold over the past decade, with returns competitive with the top US leagues,” said Gareth Burley, director of Singapore-based Mason Rae Capital, which specializes in raising funds for sports assets.
Experts said that compared to the NBA and the English Premier League, India’s cricket league is at an early stage of maturity, so despite the lower absolute value, the growth trajectory will be rapid.
“In my opinion, investors are buying US assets like they did 12-15 years ago, but this time with a much larger population and digital audience,” Burley said in an email response to CNBC.
The next phase of growth, he said, will be globalization of leagues, deeper monetization of digital audiences and commercial expansion beyond matchday revenues. Some of this is already underway.
empowering ipl
According to market research firm Nielsen, More than 66% people in India are cricket lovers fan – About 950 million. Experts told CNBC that there is likely to be a huge increase as rising disposable income drives spending on tickets and merchandise.
Fans are buying tickets at prices that would have been “unimaginable a few years ago,” said Amitesh Shah, founder of sports management firm Legaxy, adding that fans’ engagement with the game “doesn’t stop even when the last ball is bowled.”
They’re spending on merchandise, subscribing to platforms specifically to follow their teams, and engaging in brand campaigns in a way that will ultimately lead to purchases, Shah said.
IPL teams are now full-fledged sports and entertainment franchises.
The IPL 2025 season was watched and streamed by over 1 billion people across television channels and digital platforms 3.83 billion interactions On social media. About 44% of those watching also engaged with the free-to-play, live quiz game during the match.
There can be no better example of the hold these franchises have among local and Indian expatriate fans than the Mittal family, who have their roots in the state of Rajasthan.
In a statement announcing the acquisition, Mittal said, “I love cricket and my family is from Rajasthan, so there is no IPL team I would rather be a part of than Rajasthan Royals.”
Experts say that from a buyer’s perspective, the IPL hits all the right criteria and investors may be making the only profitable bet on Indian sports so far.
It has a huge and growing fan base, earnings are predictable as revenue from media rights comes before the start of the season, and there are few external risks, said Karan Kalra, managing partner of law firm Bombay Law Chambers.
