What IPL’s latest ownership deals mean for its brand growth?

As the Indian Premier League returns on March 28, its commercial scale remains unmatched. Advertising spends are expected to hover in the ₹4,500–5,000 crore range, with digital and connected TV continuing to expand their share. 

This season, however, carries added significance. Two marquee franchises—Royal Challengers Bengaluru (RCB) and Rajasthan Royals (RR)—are set to transition to new ownership after the tournament, subject to Board of Control for Cricket in India approvals. 

While there is no immediate operational change, the scale of these transactions underscores the IPL’s evolution into a high-value, multi-dimensional asset class. RCB’s sale by Diageo-controlled United Spirits to a consortium led by the Aditya Birla Group, alongside the Times Group, Bolt Ventures and Blackstone, at a valuation nearing $1.8 billion, marks a significant milestone. Rajasthan Royals’ acquisition by a US-based consortium led by entrepreneur Kal Somani, at over $1.6 billion, reinforces investor appetite. 

The twin deals underscore the growing institutional interest in IPL franchises. Together, they signal not just investor appetite, but a re-rating of teams as long-term strategic assets.

Clearly,  the shift is structural. Valued at ₹76,100 crore (D&P Advisory IPL Valuation Report 2025), the league is likely to see its valuation trajectory further strengthened by the recent deals. 

These valuations “cement the power of brand IPL as one of the world’s strongest sports franchises”, Vikram Sakhuja, Senior ad executive and Chairman of the Media Research Users Council India (MRUC India), quips. 

“The deals mark another milestone in the international growth of Indian sport and business, says Ramesh Narayan, Director Strategy, Asian Federation of Advertising Associations (AFAA)”, pointing to rising global interest as cricket expands into markets such as the US.

Veteran adman Sandeep Goyal, MD of Rediffusion, downplayed the significance of ownership changes, arguing that consumer affinity lies with the brand rather than its backers. “Frankly, 99% of customers don’t know if Horlicks is owned by SmithKline Beecham or Hindustan Unilever. They know the brand and consume it—manufacturer or owner doesn’t really matter. Same with IPL franchises. Some owners are more visible than others—Nita Ambani, SRK, and perhaps Vijay Mallya when he was around. The franchise just needs amity, pace and one voice for progress and performance.”

Sponsorship economics to change?

For IPL 2026, execution remains largely unchanged, with sponsorships locked and campaigns rolling out as planned. However, the next phase of growth—both in terms of brand deals and valuations—will take time to play out. While RCB enters the season as defending champions, Rajasthan Royals, despite winning the inaugural edition, have seen a more uneven trajectory, say experts. 

“Ownership changes can lead to shifts in team positioning and sponsorship priorities, which means continuity for deeply aligned brands is no longer guaranteed. Over the long term, however, this could drive more discipline, stronger governance, data-led decision-making and a more structured approach to monetisation, with greater ROI accountability. The flip side is that such transitions could also become more frequent,” noted Vinay Hegde, CEO, Investments (Media), Madison World. 

Ashish Bhasin, founder of The Bhasin Consulting, noted that while there is no immediate impact, relationships could evolve over time. “A lot of IPL partnerships are built on relationships between team owners and brand owners—Kingfisher and RCB had that natural fit. With new ownership, some of these dynamics can change, but over time new relationships will be formed, potentially enhancing team valuations further.”

Rising IPL franchise valuations set to reshape sponsorship economics. As costs escalate, brand associations risk becoming more exclusive, widening the gap between early and new owners. To justify investments, newer stakeholders will need to diversify monetisation through digital ecosystems, premium experiences and global extensions, operating increasingly as media and entertainment brands, explained Krishna Iyer, Director - Marketing, MullenLowe Lintas Group (now TBWA\Lintas).

Media Rights Reset: The Real Test for IPL’s Valuation Story

If the ownership deals reflect where franchise valuations stand today, the next decisive trigger will come in 2027, when media rights for the Indian Premier League come up for renewal.

The centrality of broadcast revenues to the IPL business model makes this cycle critical. Franchises derive nearly 70–75% of their income from central distributions, with the Board of Control for Cricket in India sharing roughly half of the ₹48,000 crore media rights pool from the current cycle among teams. This predictable inflow has underpinned franchise profitability and, by extension, their soaring valuations.

However, the economics for media partners are under sharper scrutiny. “IPL media partners that bid aggressively in the last cycle are still working towards sustainable returns, as high rights costs intersect with evolving consumption patterns and fragmented advertising demand. Besides, the ad growth this season may be more measured, amid macroeconomic pressures and middle-east conflict impacting global advertiser sentiment.”

This sets up a more nuanced equation for 2027. While the IPL continues to deliver unmatched scale, advertisers are increasingly diversifying spends across digital, mobile and connected TV ecosystems. The shift in consumption—particularly towards streaming—remains a long-term positive, but monetisation models are still evolving.

For investors, however, the long-term thesis remains intact. The IPL’s ability to aggregate mass audiences, attract premium advertisers, and expand into global markets continues to differentiate it from most other properties. The recent interest from global capital only reinforces that confidence.

“The next rights cycle will be crucial in determining the trajectory of value creation,” said a senior executive at a global ad network. “If media valuations continue to grow, it further strengthens franchise economics. If they stabilise, the model still holds—but growth expectations will need to be recalibrated.”

In that sense, the 2027 renewal is not just another broadcast deal—it is a referendum on the IPL’s next phase of growth. The outcome will determine how sustainably the league can balance soaring valuations with evolving media economics, and whether its current momentum can translate into long-term value creation.