RCB’s $1.8 billion takeover sets new benchmark for IPL
Rajasthan Royals also in the process of having new ownership
The Indian Premier League reinforced its status as one of the most valuable sports properties in the sporting world as Royal Challengers Bengaluru was bought for a staggering $1.8 billion.
After months of speculation over a change of ownership in the IPL, a consortium comprising of Indian conglomerate Aditya Birla Group, media company Times of India Group, and investment firms Bolt Ventures, and Blackstone acquired one of the biggest teams in franchise cricket.
Last year, RCB clinched their first IPL title after a nearly two-decade wait, further fuelling interest around the team that already has an incredible fan following for its men’s and women’s teams.
RCB’s women’s team were the first winners of the franchise tournament.
Bengaluru attracted offers from global private equity firm KKR, Indian tycoon Adar Poonawalla as well as Manchester United co-chairman Avram Glazer.
Bengaluru are not the only franchise changing ownership. Rajasthan Royals, majority owned by London-based venture capitalist Manoj Badale, are also in a separate sale process.
According to reports, a US based consortium is close to acquiring Rajasthan for a price that is similar to that of Bengaluru.
Last year, CVC Capital Partners sold its majority holding in the Gujarat Titans, valuing the franchise at around $800 million.
The stunning figures in IPL underscore the value of the league for investors across the world.
Key factors driving interest in the league were a doubling in the value of broadcast rights to more than $6b in the most recent auction in 2022.
That provided a major and guaranteed revenue stream for all franchises, which is a rarity in privately-owned sports leagues.
However, the IPL is expected to hit its peak soon as central revenue streams begin to plateau.
A ban in India on online gaming sites – a big source of sponsorship – and a consolidation of streaming platforms for media rights is expected to result in a stabilisation of revenue for the Indian cricket board, rather than the unprecedented growth witnessed over the last few years.
There are reports of the IPL expanding over the coming seasons to include more matches, or even have a separate window, to maximise returns for new investors.
However, it is unlikely that the IPL will go beyond 10 teams anytime soon as that could eat into the share of existing team owners.
