IPL’s revenue flywheel: How two franchise sales will deliver Rs 1,550 cr windfall for BCCI

The back-to-back sales of Royal Challengers Bengaluru and Rajasthan Royals—together valued at over ₹31,500 crore—are set to deliver an estimated ₹1,550 crore windfall to the Board of Control for Cricket in India, sources told e4m.

“The payout stems from a 5% transfer fee embedded in IPL franchise agreements, which is triggered on any change in ownership. The clause, coupled with mandatory approvals from the BCCI and IPL Governing Council, ensures the board benefits financially from every ownership transaction. The transaction fee is typically borne by the buyer,” sources privy to the development say. 

The latest trigger comes from United Spirits Ltd (USL), which has approved the sale of its entire stake in Royal Challengers Sports Pvt Ltd—the entity that owns RCB—for ₹16,660 crore. The deal, signed on March 24, 2026, involves a consortium including Bolt Ventures, the Aditya Birla Group, funds managed by affiliates of Blackstone Inc, Times Internet, and Metropolitan Media Company.

In parallel, Rajasthan Royals is being acquired by a consortium led by US-based entrepreneur Kal Somani at a valuation of around $1.63 billion (₹15,000–₹16,000 crore). Both transactions remain subject to regulatory approvals.

Since 2008, Rajasthan Royals’ valuation has risen roughly 25-fold, while Royal Challengers Bengaluru has seen a near 16-fold increase, placing IPL teams firmly in the $1.5–$2 billion bracket.

The deals come at a time when the IPL’s business value touched $18.5 billion (Rs 1.56 lakh crore) in 2025, according to Houlihan Lokey, making it one of the most valuable sports leagues globally on a per-match basis.

However, concerns had emerged over a potential cooling in valuations, with industry estimates suggesting a ₹16,000 crore erosion following the Jio–Star merger and a hit to key sponsorship categories.

The latest transactions, however, indicate that premium franchises continue to command strong valuations, backed by global investor interest and limited supply. Both RCB and Rajasthan Royals saw competitive bidding from private equity funds, global investors and Indian conglomerates. 

“Multiple private equity clients across the U.S. and Europe have initiated enquiries for IPL stakes over the past few months. This is notable at a time when economic headwinds have prompted several investors to pull back from India, with geopolitical tensions in the Middle East adding to market uncertainty. The IPL, however, continues to hold strong on brand value,” say industry sources.

In this backdrop, the 5% transfer clause assumes greater importance. It allows the BCCI to capture value at the point of transaction, even as broader revenue streams such as media rights and sponsorships face potential headwinds, an executive noted. 

For the BCCI, each franchise sale is no longer just a change in ownership—it is a direct monetisation event.

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More Franchises to explore opportunities?

The supercharged valuation of the two IPL franchises is likely to trigger stake-sale explorations by other owners which may further bolster the BCCI’s coffers, say industry insiders. 

“The latest transactions have pushed benchmark valuations to around ₹16,000 crore—over twice the ₹7,500 crore valuation implied when Torrent Group acquired a 67% stake in Gujarat Titans for ₹5,025 crore in early 2025,” a sports marketing executive said.  

Early signals indicate some shareholders are informally evaluating options, driven by internal dynamics, with activity likely to pick up ahead of the next media rights cycle.

Is it sustainable?

Not everyone is going with the flow. Sceptics are questioning the steep jump in IPL franchise valuations amid global economic headwinds and geopolitical uncertainty in the Middle East.

“It’s hard to justify valuations doubling within a year despite macro pressures and the real-money gaming ban. No major triggers—such as media rights renewal or new title sponsorship deals—have emerged in this period, making the surge difficult to rationalise,” sports experts noted. Some even call the phenomenon a bubble which may burst.

Experts also flagged a disconnect between earnings and valuations, noting that IPL franchises generate around ₹700 crore annually. Nearly ₹500 crore comes from central revenues, largely media rights, with the rest driven by sponsorships, ticketing and merchandise. “Against this, how do you justify valuations at 20x revenue?” one expert said.