Global private equity firms such as KKR and Blackstone are increasingly targeting India’s cricket market, drawn by the rapid growth, profitability, and massive global viewership of the Indian Premier League (IPL). The IPL, India’s richest cricket league, has seen its business value surge to a record $18.5 billion last year, according to Houlihan Lokey. Although smaller than the NFL and NBA, the IPL is the world’s second-most valuable sports league on a per-match basis.
KKR and Blackstone are reportedly considering stakes in Royal Challengers Bengaluru (RCB), the winner of last season. KKR is also evaluating a potential investment in the Rajasthan Royals team, while Partners Group is exploring opportunities with at least one team. The heightened interest follows a successful deal by CVC Capital, which sold its majority stake in the Gujarat Titans, realising a return of over 350% in just four years, valuing the team at $900 million. CVC Capital is a private equity firm that focuses on investments across a wide range of industries. Houlihan Lokey is an investment bank that provides advice and services to corporations, institutions, and governments worldwide.
Key factors attracting investors include a doubling of broadcast rights to over $6 billion in 2022, rising franchise revenues, and the Board of Control for Cricket in India (BCCI)’s revenue-sharing model, which ensures well-funded teams and competitive balance. Each IPL franchise earns approximately $55 million annually from the BCCI’s pool, in addition to ticket sales and sponsorships. Mohit Burman, co-owner of the Punjab Kings, notes that his sponsorship revenue has grown 30% annually, emphasising the revenue-sharing model as a major draw for private equity firms.
Despite the immense potential, risks remain. The proliferation of similar leagues in other countries and the merger between Reliance and Disney, which could reduce competition for broadcast rights in 2027, are potential concerns. Nevertheless, the IPL’s team revenue, earnings growth, and limited number of teams continue to attract significant investment interest, with some IPL teams more than doubling their revenue and profits since 2022. Kolkata Knight Riders, for example, reported a 119% increase in revenue for 2023-24, reaching $76.8 million.
