Investors chase Indian Premier League to ride booming cricket economy
Fans cheer from stands during the Indian Premier League (IPL) Twenty20 final cricket match between Royal Challengers Bengaluru and Punjab Kings at the Narendra Modi Stadium in Ahmedabad on June 3, 2025. (Photo by Arun SANKAR / AFP) / — IMAGE RESTRICTED TO EDITORIAL USE – STRICTLY NO COMMERCIAL USE — (Photo by ARUN SANKAR/AFP via Getty Images)
Arun Sankar | Afp | Getty Images
Indian cricket is increasingly becoming hot property for investors looking to cash in on the booming business of the wildly popular sport in the subcontinent.
In little over a month, the Indian Premier League, or IPL, has seen two of its franchises being sold to investors at billion-dollar-plus valuations, the latest being the Rajasthan Royals that was bought this Sunday, valued at $1.65 billion.
A consortium of U.S. investors led by Kal Somani and backed by Rob Walton of Walmart Group was in the fray to acquire Rajasthan Royals, according to multiple media reports, but lost out to global steel magnate Laxmi Mittal and Indian vaccine tycoon Adar Poonawalla.
Somani’s group expressed disappointment at not being able to own the franchise, according to ESPN. “We were all motivated by the opportunity to help take the IPL to new international heights,” the consortium reportedly said.
In late March, a group comprising Blackstone and serial American sports investor David Blitzer acquired IPL’s Royal Challengers Bengaluru, or RCB, franchise in a $1.8 billion deal.
IPL is a fast‑paced, franchise‑based cricket league launched in 2008 that blends top international and Indian talent. Played each year over nearly two months, it features 10 teams, offering a mix of high‑intensity cricket, celebrity ownership, entertainment, and massive TV and streaming audiences.
Promising returns
A history of strong capital returns and potential to scale up the franchises backed by a fanbase of nearly a billion people is leading to heightened interest from global investors in the IPL, experts said.
“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, Deloitte Asia Pacific, told CNBC in an email.
On a per-match basis, IPL is already the second most valued sports league after the NFL, according to Deloitte. IPL valuation is estimated at $18.5 billion, as against the NFL’s $227 billion and the NBA’s $165 billion in 2025, but compared with IPL’s 74 matches, NFL teams play 272 games, and 30 NBA teams play 82 games per team each season.
Besides cash flows and valuations, investor returns have also been quite stellar. “Compared with global deal benchmarks, IPL returns stand out for their speed and growth profile,” Walton said, estimating that private equity firm CVC Capital earned 350% return last year when it sold its 67% stake in IPL franchise Gujarat Titans. CVC had acquired Gujarat Titans in 2021.
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