IPL: A Lucrative Business – A Deep Dive
This study reveals the IPL's surging business and brand value in 2025, highlighting its global appeal, resilience, and strong investment potential.
Published in July 2025 by Houlihan Lokey, The "IPL Valuation Study 2025" provides an in-depth analysis of the brand valuation of the Indian Premier League (IPL) and its 10 franchise teams. The report's objective is to provide a comprehensive evaluation of brand valuations, considering key drivers such as fan engagement, commercial partnerships, and on-field performance, offering a 360-degree perspective for investors, industry professionals, and enthusiasts.
Overall IPL Valuation
IPL Business Value: The study indicates that the value of the IPL as a business has soared to US$18.5 billion, marking a 12.9% increase (16.1% in INR terms) from the previous year. This valuation incorporates the cash flows generated by the IPL as a standalone entity, representing its fair market value.
IPL Brand Value: The brand value of the IPL has increased by 13.8% year over year, reaching US$3.9 billion (equivalent to ₹32,721 crore, a 16.1% increase year over year in INR terms). Brand value signifies the monetary worth of intangible assets such as a trade name, trademark, and associated goodwill, and is considered a subset of an entity's overall business value. This considers factors such as comparable third-party license agreements, the brand's importance to operations, company profitability, competitive landscape, and the presence of marquee players like Virat Kohli and MS Dhoni.
IPL's Success, Resilience, and Commercial Impact
The IPL has established itself as a global phenomenon, revolutionising fan engagement and commercial models, and inspiring the creation of short-format leagues across continents. The 2025 season notably demonstrated the league's resilience and adaptability, swiftly resuming after a temporary suspension due to geopolitical tensions, akin to its agility during the COVID-19 pandemic.
Key commercial aspects and achievements highlighted in the study include:
Talent Incubation: The 2025 IPL season underscored the league's role in nurturing new cricketing talents, with young Indian and international players gaining prominence.
Player Acquisitions: A remarkable ~US$76.00 million was invested in 182 players during the November 2024 mega-auction, featuring high-profile signings such as Rishabh Pant for ~US$3.19 million and Shreyas Iyer for ~US$3.16 million.
Sponsorship Deals: The BCCI successfully generated ₹14,850 million from the sale of four associate-sponsor slots, representing a 25% increase over the previous cycle. Furthermore, the Tata Group extended its title-sponsorship commitment through 2028 in a five-year deal worth US$300 million.
The IPL has become a primary platform for launching high-profile commercial campaigns, similar to the Super Bowl in the U.S..
Viewership Records:
The IPL 2025 final attracted over 600 million views on JioCinema, reinforcing its status as one of the world's most-watched broadcast spectacles.
The overall projected audience for IPL 2025 was anticipated to reach 500 million unique viewers across platforms, with advertising revenues estimated at US$600 million.
Specifically, the IPL 2025 final garnered over ~678 million views on JioHotstar, surpassing the viewership for the India-Pakistan clash during the ICC Championship earlier in the year.
Technological Innovations: To enhance viewer engagement, IPL 2025 introduced multi-angle 4K HDR streaming, real-time augmented reality (AR) graphics, interactive polls, and metaverse "game-day" lounges.
The IPL is described as a "near-perfect blend of predictable cash flows and cost discipline," a rare attribute in the global sports asset landscape.
Its revenues are underpinned by long-term media rights contracts and upfront sponsorship deals, ensuring annuity-like cash flows, while a salary cap serves as an "embedded margin protector" against wage inflation. This "asset-light, revenue-guaranteed model" positions the IPL as a "high-growth compounder in the entertainment space" for institutional investors. Its robust growth trajectory is further propelled by OTT penetration, a blend of youthful and diverse audiences, global awareness, and ongoing asset creation.
Franchisee Brand Valuations (2025)
The report provides a detailed evaluation of the brand valuations for individual IPL franchises, which are influenced by factors such as fan engagement, commercial partnerships, and on-field performance, with the emergence of dynamic young talent significantly boosting marketability.
Royal Challengers Bengaluru (RCB): RCB clinched the No. 1 IPL brand position with a brand value of US$269.0 million.
Mumbai Indians (MI): MI secured the No. 2 spot with a brand valuation of US$242.0 million.
Chennai Super Kings (CSK): CSK held the third position in the brand rankings with a brand value of US$235.0 million, despite a challenging season on the field.
Kolkata Knight Riders (KKR): KKR retained its fourth position on the brand value chart with a brand value of US$227.0 million.
Sunrisers Hyderabad (SRH): SRH ascended to the fifth brand position in 2025, with a brand value of US$154.0 million.
Delhi Capitals (DC): DC was valued at US$152.0 million.
Rajasthan Royals (RR): RR maintained the seventh brand slot in 2025 with a brand value of US$146.0 million.
Gujarat Titans (GT): GT secured the eighth spot in brand valuation for 2025 with a value of close to US$142.0 million.
Punjab Kings (PBKS): PBKS emerged as the highest-growing team in terms of brand value in 2025, securing the No. 9 spot with a value of US$141.0 million.
Lucknow Super Giants (LSG): LSG registered a brand value of US$122.0 million.
Insights into Sports Franchise Ownership
Investing in a sports franchise is increasingly recognised as a compelling opportunity due to its capacity for long-term value creation, profound emotional engagement, and inherent market resilience.
Financial Gains: Sports franchises have historically outperformed many traditional asset classes, demonstrating significant value appreciation driven by diversified revenue streams, including ticket sales, merchandise, sponsorships, and highly lucrative broadcasting rights. For instance, the Dallas Cowboys were valued at over US$10 billion in 2024.
Building Value through Brand Equity: Owning a sports team serves as a powerful statement of influence and cultural relevance, enhancing an individual's or corporation's public profile and facilitating high-level partnerships. Owners often leverage franchises to amplify corporate influence, build global goodwill, and diversify their investment portfolios.
Diversification of Investment Portfolio: Sports franchises constitute a distinct asset class, largely uncorrelated with traditional investments such as stocks or bonds, thereby offering stability during economic downturns due to inherent fan loyalty. The IPL, in the Indian context, is specifically highlighted as a "diversification powerhouse".
Expanding Markets: The global sports landscape is undergoing rapid transformation, unveiling new opportunities in burgeoning sectors:
Women’s Sports: Projected to generate US$1.28 billion in revenue in 2024, with significant growth observed in women’s football/soccer and basketball. The Women’s Premier League (WPL) in India, modelled on the IPL, has emerged as a commercial success, showcasing untapped fan enthusiasm.
Esports: Valued at US$2 billion in 2023, the esports industry is projected to grow at a 15% CAGR through 2032, diversifying its revenue streams across sponsorships, media rights, in-game purchases, and premium subscriptions.
Global Reach and Streaming Power: The aggressive acquisition of global broadcasting rights by streaming platforms is anticipated to propel global sports viewership beyond 4 billion people by 2026.
Rise of Sports Investment Funds: The sports sector is experiencing rapid financialisation, with private equity and institutional investors recognising the stability, cultural relevance, and commercial upside of sports franchises. This has led to the establishment of dedicated sports investment funds managing multibillion-dollar portfolios across various leagues, bringing strategic capital and operational expertise. Most major leagues now permit institutional capital to acquire minority stakes.
Exit Options and Liquidity: Owners have a variety of strategies for achieving profitable exits from their investments, including:
Full or Partial Sale to Strategic Buyers: Divesting stakes to private equity firms, high-net-worth individuals, corporate entities, or international investors.
IPOs and Public Listings: Listing a team on a stock exchange to monetise the investment through share sales and enhance transparency.
Strategic Mergers and Partnerships: Engaging in mergers or joint ventures with other sports teams, media conglomerates, or tech companies to unlock synergies.
Partial Exits and Retained Ownership: Selling a minority stake while retaining operational control or board influence.
Conclusion
The IPL continues its trajectory of redefining sports commercialisation, marked by record auctions, significant sponsorships, technological advancements, and an expanding international footprint.
It stands as one of the most valuable sports properties globally, intrinsically linked to the ICC’s broader ambition to extend cricket’s worldwide reach.
Investing in a sports franchise offers a distinctive combination of tangible and intangible returns, allowing investors to participate in shaping a piece of cultural history while potentially yielding substantial financial rewards.