Private equity’s latest frontier is not Silicon Valley or European infrastructure, but India’s cricket stadiums. According to a report by Reuters, global buyout giants including KKR and Blackstone are actively exploring stakes in Indian Premier League franchises, drawn by soaring valuations, record media rights and a revenue model that has transformed the IPL into a serious institutional asset class.
What began in 2008 as a celebrity-backed sporting experiment has evolved into a league valued at $18.5 billion, according to U.S.-based investment bank Houlihan Lokey. On a per-match basis, the IPL now ranks as the second-most valuable sports competition globally after the NFL, despite being far smaller in aggregate scale than America’s $227 billion NFL or the NBA at $165 billion.
The deal that triggered private equity’s rush
The catalyst for the current wave of interest was CVC Capital’s exit from Gujarat Titans. The European firm sold a majority stake in the franchise for a valuation of about $900 million, generating a return exceeding 350% in dollar terms just four years after its initial acquisition.
That transaction, bankers say, reshaped how global capital views cricket assets.
Harsh Talikoti, a sports deals specialist at Houlihan Lokey, speaking to Reuters, said the CVC transaction sent a clear signal to the market, noting that “The IPL model proved you can generate serious profit.”
Interest has since broadened. Banking sources indicate KKR and Blackstone are evaluating stakes in Royal Challengers Bengaluru, while KKR is also reviewing Rajasthan Royals. Swiss-based Partners Group is considering at least one franchise. Separately, Avram Glazer has reportedly tabled a bid of around $1.8 billion for RCB.
Why IPL economics appeal to institutional investors
At the centre of the investment thesis is the Board of Control for Cricket in India’s centralised revenue structure. Media rights and league-level sponsorship income are pooled, with half retained by the board and the remainder distributed evenly among the 10 franchises.
Each team receives roughly $55 million annually from this central pool alone, before factoring in ticket sales, local sponsorship deals and merchandise income. The structure ensures steady cash flows and competitive balance through annual player auctions.
Siddharth Patel, managing partner at CVC Capital, linked the opportunity directly to India’s broader macroeconomic trajectory. “India’s structural economic growth should continue to support long-term value creation,” he told Reuters, adding that “Combined with the scarcity of IPL franchises, it is clear why there is such intense investment interest from both industrial groups, family offices and private equity investors.”
Patel also pointed to the league’s design, explaining that the revenue-sharing framework helps “maintain strong audience engagement and provides franchises with predictable economics through the media rights cycle.”
Broadcast rights and viewership drive valuations
Media economics underpin much of the optimism. In 2022, IPL broadcast rights for the 2023–2027 cycle were sold for $6.2 billion, more than double the previous deal. The rights are now held by the merged Reliance-Disney India entity following their 2024 combination.
Jefferies analysts have noted that on a per-match basis, those media deals place the IPL second only to the NFL globally.
Audience metrics reinforce the premium. The 2025 season drew a record 1.19 billion viewers across digital and television platforms, eclipsing many established global leagues in annual reach.
Consultant Sumat Chopra of Kearney, who has advised clients on IPL matters, told Reuters that “IPL franchise valuations are likely to compound steadily over time, supported by rising media economics.”
Franchise revenues and profitability accelerate
Regulatory filings analysed by Reuters show at least five IPL teams have more than doubled revenue since 2022. Two franchises also doubled profits over the same period, while three others recorded profit growth even without revenue doubling.
Kolkata Knight Riders reported revenue of $76.8 million for 2023–24, marking a 119% jump from the prior year. Net profit surged sixfold to $19.4 million.
Punjab Kings co-owner Mohit Burman highlighted that sponsorship revenue for his franchise has been expanding at about 30% annually. Comparing returns to established U.S. leagues, he told Reuters, “The IPL can certainly rival – and in some cases outperform – U.S. leagues on investor returns, even if the absolute scale differs.”
Reflecting on the broader shift in perception, Burman added that “The asset class has clearly come of age.”
Trophy assets with competitive tension ahead
For some owners, IPL teams represent more than financial vehicles. Indian billionaire Sanjiv Goenka described his 2021 acquisition of a franchise for $781 million as a “trophy business” in an interview with Reuters last year, signalling both prestige and long-term confidence in rising media valuations.
Yet risks remain. The consolidation of broadcast rights under a single Reliance-Disney platform has prompted concerns that reduced competition could temper the next rights auction in 2027. Meanwhile, expanding T20 leagues in South Africa, the UAE and Australia are intensifying the global franchise calendar, creating scheduling pressures for elite players.
Unlike the NFL, which only opened team ownership to private equity in 2024, and the NBA, which imposes strict caps, the IPL currently has no formal ceiling on private equity participation. That regulatory flexibility adds another layer of appeal for global funds seeking scalable exposure.
With the next IPL season beginning on March 26, several of the world’s largest investment houses are weighing entry into what has rapidly become one of sport’s most dynamic financial ecosystems.
What was once a Bollywood-backed spectacle is now being evaluated in boardrooms alongside infrastructure, private credit and growth equity — and the numbers suggest cricket’s premier league is no longer just a sporting contest, but a multi-billion-dollar asset class competing for global capital.
