Why do IPL Valuations Continues to Rise? An Analysis of the Commercial and Governance Models in Franchise Cricket

This^[1] year a series of landmark transactions reshaped ownership across the Indian Premier League (IPL), with Royal Challengers Bengaluru (RCB) reportedly sold at a valuation of approximately $^[2]1.78 billion^[3] and Rajasthan Royals at approximately $1.6 billion. [4] These billion-dollar deals, involving a mix of global institutional investors, strategic buyers, and private equity participants, mark a defining moment in the commercialization of franchise cricket and signal the IPL’s emergence as a mature, investable global sports asset.

Launched in 2008, the IPL fundamentally transformed how cricket is consumed and monetised. Its shorter match durations, city-based franchise structure, international player participation, and media-first approach have aligned the sport with modern, on-demand viewing habits. Against this backdrop, the recent transactions not only underscore the league’s strong financial trajectory but also frame the key question explored in this article: what structural features make the IPL one of the most attractive investment opportunities in global sport.

First, the entry of institutional private equity, most notably Blackstone as part of the consortium acquiring RCB^[5], marks a structural shift in the investor base and establishes IPL franchises as a scalable, long-term investable asset class.

Second, these valuations imply price-to-revenue multiples in the range of 20x to 22x.^[6] By comparison, S&P Global (the parent company of the S&P 500 index in the United States and a financial intelligence and analytics corporation) notes that price-to-revenue multiples for top-tier teams typically sit in the low double digits, with franchise valuations having accelerated sharply over the past decade, outpacing growth seen in prior periods.^[7] Recent transactions illustrate the valuation levels being paid for established North American franchises. For example, the Milwaukee Bucks were sold at a price-to-revenue multiple of approximately 9.9x, while the Boston Celtics were valued at approximately 13.3x revenue in their recent transaction. [8] This valuation premium reflects the IPL’s positioning and growth potential compared to leading sports leagues such as the National Football League (NFL) and English Premier League (EPL).

Figure 1: Implied Average Revenue Multiples for North American Leagues vs Recent Acquisition of IPL Teams

In this article, the authors examine certain key factors underpinning the attractiveness of IPL franchises as an investable sports asset, including its adoption of advanced broadcast technology, premium media rights valuations, capital-light operating model, predictable profitability and, subject to potential cross-league regulation, the ability for investors to build multi-team portfolios across global cricket leagues.

This article looks at:

• Broadcast Technology and Media Rights
• Profitability and Capex Light Model
• New Formats Gaining Popularity – The Hundred & Women’s Cricket
• Multi-Club Ownership in Cricket
• Complexity and Sustainability of IPL Valuations
• Conclusion