There was a time when even Bollywood could sell the idea of owning an Indian Premier League (IPL) franchise, an ambitious, almost impossible dream that still felt like the realm of possibility.
This perception has changed over the years. With franchise valuations now in the billions of dollars, IPL teams have moved significantly beyond the reach of individual ownership and into the realm of large institutional capital. However, even at these elevated levels, franchises continue to attract buyers, as seen in the recent takeovers of Royal Challengers Bengaluru and Rajasthan Royals.
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Prior to the 2026 season, both franchises changed hands in deals that underscore the shift.
United Spirits Limited (USL) approved the sale of Royal Challengers Bengaluru to a high-profile consortium including the Aditya Birla Group, with the franchise valued at $1.78 billion (Rs 16,500 crore), nearly 37 times its original price in 2008. Around the same time, Rajasthan Royals of a valu Kalumanium was fully bought out by Rajasthan Royals of a $1.63 billion (Rs 15,290 crore).
The scale of these transactions focuses on how IPL franchises are valued today and why investor interest remains strong even at such levels.
BEYOND FINANCIAL METRICS
At a basic level, franchise valuations are tied to revenue, profitability and assets. But those who participate in these trades point to a broader set of factors shaping prices.
“What underlies such a valuation goes far beyond just numbers,” says Paroksh Gupta, co-founder and managing director of A&W Capital, which acted as lead financial adviser to the Bolt-Birla consortium on the RCB deal.
A key part of this assessment is the broader macro context. India’s position as a long-term growth market, combined with the IPL’s scale, visibility and consistent demand, makes the league a particularly attractive sporting property.
“Within this ecosystem, RCB stands out as a leading asset in almost all relevant metrics, be it sponsorship, gate revenue, fan engagement, star power or on-field performance,” he explains.
Valuations are shaped by both future expectations and current earnings, with investors valuing the league’s ability to continue to grow. IPL: Fans attend RCB’s opening match of the 2026 season. (Photo: RCB)
THE ROLE OF THE BRAND IN VALUATION
Brand value is often emphasized in discussions of IPL franchises, but it is part of a broader valuation framework.
According to the Houlihan Lokey IPL Valuation Study 2025, the RCB brand is valued at $269 million, which forms one part of the franchise’s total business valuation along with revenue, assets and other intangible factors such as fan engagement and market reach.
Financially, IPL franchises operate under a structured revenue model. Royal Challengers Private Limited (RCPL), which owns RCB, posted revenue of Rs 504 crore in FY25, with a significant portion coming from the BCCI-distributed central revenue pool, a shared pool of broadcast and sponsorship revenue shared among all teams.
Across the league, this central distribution typically contributes 70 to 80 percent of total revenue. For RCB, this accounted for around 65 per cent of operating income in FY25, with the rest coming from sponsorship, ticket sales, play-off earnings and royalties.
“Brand strength is a central pillar in evaluating a franchise, given the role it plays in driving long-term monetization,” Gupta told India Today over phone.
The RCB brand has evolved beyond on-field performance, underpinned by sustained fan engagement and visibility in various markets.
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Another masterclass in chasing from Virat, Dev’s commanding batting, Duffy’s deadly spell making it a sensational debut, Salty’s jaw-dropping fielding and love for our pic.twitter.com/CT6xdat6rF— Royal Challengers Bengaluru (@RCBTweets) March 29, 2026
HOW RCB DOWNLOADS GLOBALLY
Placing these deals alongside global benchmarks helps illustrate their scale, although comparisons are shaped by differences in market maturity and revenue models.
Italian soccer club AC Milan was valued at around $1.2 billion when it was bought by RedBird Capital Partners in 2022. In the same year, Chelsea FC was acquired by a consortium led by Todd Boehly for $5.4 billion.
“We’ve seen similar trends around the world,” says Gupta, referring to leagues like the NFL and the English Premier League, where franchise valuations have steadily increased over time. Football and cricket team rating against NFL team Dallas Cowboys – the richest sports team in the world.
However, IPL operates within a different commercial ecosystem.
“Fan monetization, licensing and merchandising is still relatively underdeveloped in India,” says Vishal Jaison, co-founder of Baseline Ventures. “These international teams have had decades to build these revenue streams.”
This gap leaves room for further expansion in how franchises generate income outside of central distribution.
MEDIA RIGHTS AND FUTURE DRIVERS
Media rights remain central to the IPL’s financial model and, by extension, the valuation of franchises.
For the 2023 to 2027 cycle, IPL media rights were sold for Rs 48,390 crore, split between Viacom18 (digital) and Disney Star (television), before being consolidated under JioStar. This central fund forms the backbone of franchise revenue, with annual distributions flowing directly to the teams.
As the number of games increases, the league creates more broadcast content and expands the potential value of future media rights deals.
“In the future, the number of matches is likely to increase, which would create more matches to broadcast and consequently more revenue through media rights,” says Jaison.
The broadcasting landscape itself is also evolving. “The likes of Amazon Prime and YouTube are already involved in cricket coverage, while Netflix has started exploring live sports, opening up the possibility of more competition in future rights cycles,” he adds.
Aryaman Birla, who is expected to take over the leadership role at RCB, indicated that investors’ focus is already shifting to the longer term.
“We believe what’s really important is not this media cycle, but the next one, which we’re very bullish on,” he told an investment summit in Mumbai, referring to the cycle starting in 2033.
DEVELOPING MARKET
Recent franchise sales point to a market that is expanding in both scale and complexity.
IPL teams are increasingly valued alongside global sports fixtures on prime dates, even as their business models continue to evolve. Revenue streams such as merchandising, licensing and international fan monetization remain underdeveloped compared to established global leagues, leaving considerable room for growth.
The deals involving RCB and Rajasthan Royals reflect this dual reality, a strong current valuation built on an ecosystem that continues to grow to its full commercial potential.
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Issued by:
Kingshuk Kusari
Published on:
March 29, 2026 1:26 PM IST
