Franchises in the Indian Premier League (IPL) command higher valuations relative to revenue than teams in the National Basketball Association (NBA), according to Sportico’s first IPL valuation study. The findings highlight the premium investors attach to shared income and future commercial growth.
The study puts the combined estimated value of the 10 IPL teams at about $17 billion. An average franchise is valued at $1.7 billion against estimated revenue of $74.4 million for the 2026 season. Sportico puts the average valuation-to-revenue multiple at 22.9, compared with 14.6 for the NBA.
Which IPL teams have the highest valuations?
Mumbai Indians lead at $2.1 billion, followed by Royal Challengers Bengaluru (RCB) at $1.85 billion and Chennai Super Kings at $1.75 billion.
Lucknow Super Giants, the lowest-valued franchise, are worth an estimated $1.5 billion. The $600 million gap means Mumbai’s valuation is 40 per cent higher than Lucknow’s.
How does revenue sharing support IPL valuations?
Sportico estimates that central distributions account for about 75 per cent of average franchise revenue. The Board of Control for Cricket in India (BCCI) retains half the media rights fees after production costs. About 90 per cent of the remaining amount, alongside other league earnings, is shared equally, with 10 per cent linked to performance.
This shared income helps explain the relatively narrow gap between team valuations. Owners gain access to the league’s commercial earnings while developing their own fan base and partnerships. A franchise’s financial appeal therefore extends beyond its position in the points table.
The current broadcasting agreement provides the foundation for that income. BCCI’s announcement of the 2022 auction put the cumulative value of rights for the 2023–27 seasons at Rs 48,390.32 crore. A contract spanning several seasons gives investors greater visibility on revenue than a business dependent entirely on fresh sponsorship sales or ticket receipts each year.
Why are IPL franchises attractive to investors?
Scarcity adds to the appeal. In its accompanying podcast, Sportico describes a model combining a short season and structured revenue sharing with just 10 franchises. That limited supply of ownership opportunities can support prices even when current revenue is modest.
The announced RCB transaction provides a measure of investor appetite. United Spirits agreed in March to sell its entire stake in Royal Challengers Sports Private Limited for Rs 16,660 crore to a consortium comprising Aditya Birla Group, Times of India Group, Bolt Ventures and Blackstone. The company owns RCB’s IPL and Women’s Premier League teams.
The deal also shows why headline prices need careful comparison. It covers the company operating both teams, while Sportico publishes enterprise value estimates. Any comparison must account for the assets included and the treatment of cash and debt before it can establish a subsequent change in value.
The RCB deal included both its IPL and Women’s Premier League teams. The transaction price therefore reflects ownership of both businesses and cannot be treated as a standalone valuation of the men’s IPL franchise.
