RCB sold for $1.78 billion. Where does it stack up against rest of the world?

There was a time when even Bollywood could sell the idea of owning an Indian Premier League (IPL) franchise, an ambitious, near-impossible dream, but one that still felt within the realm of possibility.

That perception has shifted over the years. With franchise valuations now running into billions of dollars, IPL teams have moved well beyond the reach of individual ownership and into the domain of large institutional capital. Even at these elevated levels, however, franchises continue to attract buyers, as seen in the recent takeovers of Royal Challengers Bengaluru and Rajasthan Royals.

In the lead-up to the 2026 season, both franchises changed hands in deals that underline this shift.

United Spirits Limited (USL) approved the sale of Royal Challengers Bengaluru to a high-profile consortium involving the Aditya Birla Group, with the franchise valued at $1.78 billion (Rs 16,500 crore), nearly 37 times its original price in 2008. Around the same time, Rajasthan Royals was fully acquired by a Kal Somani-led consortium at a valuation of $1.63 billion (Rs 15,290 crore).

The scale of these transactions brings into focus how IPL franchises are being valued today, and why investor interest remains strong even at such levels.

BEYOND FINANCIAL METRICS

At a basic level, franchise valuations are linked to revenues, profitability and assets. Those involved in these deals, however, point to a broader set of factors shaping pricing.

“What underpins such a valuation goes well beyond just the numbers,” Paroksh Gupta, co-founder and Managing Director at A&W Capital, which acted as the lead financial advisor to the Bolt-Birla consortium in the RCB transaction, tells India Today.

The broader macro context forms a key part of that assessment. India’s position as a long-term growth market, combined with the IPL’s scale, visibility and consistent demand, makes the league a particularly attractive sporting property.

“Within that ecosystem, RCB stands out as a leading asset across almost every relevant metric, be it sponsorships, gate receipts, fan engagement, star power or on-field performance,” he explains.

Valuations are shaped as much by future expectations as by current earnings, with investors pricing in the league’s ability to grow further.

ROLE OF BRAND IN VALUATION

Brand value is often highlighted in discussions around IPL franchises, but it sits within a larger valuation framework.

According to the Houlihan Lokey IPL Valuation Study 2025, RCB’s brand is valued at $269 million, forming one part of the franchise’s overall business valuation alongside revenues, assets and other intangible factors such as fan engagement and market reach.

Financially, IPL franchises operate within a structured revenue model. Royal Challengers Private Limited (RCPL), which owns RCB, reported revenues of Rs 504 crore in FY25, with a significant portion coming from the central revenue pool distributed by the BCCI, a shared pool of broadcast and sponsorship revenues divided among all teams.

Across the league, this central distribution typically contributes 70 to 80 percent of total revenue. For RCB, it accounted for around 65 percent of operating revenue in FY25, with the rest coming from sponsorships, ticket sales, playoff earnings and royalties.

“Brand strength is a central pillar in evaluating a franchise, given the role it plays in driving long-term monetisation,” Gupta tells India Today over phone.

RCB’s brand has evolved beyond on-field performance, supported by sustained fan engagement and visibility across markets.

HOW RCB STACKS UP GLOBALLY

Placing these deals alongside global benchmarks helps illustrate their scale, even if the comparisons are shaped by differences in market maturity and revenue models.

Italian football club AC Milan was valued at around $1.2 billion when it was acquired by RedBird Capital Partners in 2022. In the same year, Chelsea FC was taken over by a Todd Boehly-led consortium at a valuation of $5.4 billion.

“We have seen similar trends play out globally,” Gupta says, referring to leagues such as the NFL and the English Premier League, where franchise valuations have risen steadily over time.

The IPL, however, operates within a different commercial ecosystem.

“Fan monetisation, licensing and merchandising are still relatively underdeveloped in India,” says Vishal Jaison, co-founder of Baseline Ventures. “These international teams have had decades to build those revenue streams.”

That gap leaves room for further expansion in how franchises generate income beyond central distributions.

MEDIA RIGHTS AND FUTURE DRIVERS

Media rights remain central to the IPL’s financial model and, by extension, franchise valuations.

For the 2023 to 2027 cycle, IPL media rights were sold for Rs 48,390 crore, split between Viacom18 (digital) and Disney Star (television), before being consolidated under JioStar. This central pool forms the backbone of franchise revenues, with annual distributions flowing directly to teams.

As the number of matches increases, the league creates more broadcast content, expanding the potential value of future media rights deals.

“Going ahead, the number of matches is likely to increase, which would create more matches to broadcast and, in turn, more revenue through media rights,” Jaison says.

The broadcast landscape itself is also evolving. "Companies such as Amazon Prime and YouTube are already involved in cricket coverage, while Netflix has begun exploring live sports, opening the possibility of greater competition in future rights cycles," he adds.

Aryaman Birla, who is expected to take on a leadership role within RCB, has indicated that investor focus is already shifting to the longer term.

“What we believe is really important is not this media cycle, but the next one we are very bullish on that,” he said at an investment summit in Mumbai, referring to the cycle beginning in 2033.

EVOLVING MARKET

Recent franchise sales point to a market that is expanding in both scale and complexity.

IPL teams are increasingly being valued alongside global sporting properties in headline terms, even as their business models continue to evolve. Revenue streams such as merchandising, licensing and international fan monetisation remain underdeveloped compared to established global leagues, leaving significant room for growth.

The deals involving RCB and Rajasthan Royals reflect this dual reality, strong present-day valuations built on an ecosystem that is still growing into its full commercial potential.

IPL 2026 | IPL Schedule | IPL Points Table | IPL Videos | Cricket News | Live Score

- Ends

Click here to read article