Mixed financial fortunes for IPL’s marquee teams
Despite their global brand presence and massive fan bases, three of the Indian Premier League’s biggest franchises—Mumbai Indians (MI), Royal Challengers Bengaluru (RCB), and Lucknow SuperGiants (LSG)—have reported significant revenue declines for the financial year ending March 2025 (FY2025). According to a report by Economic Times‘ Javed Farooqui, all three teams experienced either shrinking profits or mounting losses, in a year that included the conclusion of IPL 2024 and the partial start of IPL 2025.
The financial performance reflects broader structural challenges facing even the most commercially successful teams, including fluctuating match schedules, growing operational costs, and fixed franchise obligations that remain constant regardless of on-field results.
Mumbai Indians see earnings decline despite global cricket portfolio
Indiawin Sports, the Reliance Industries-owned entity that operates Mumbai Indians, posted a profit of ₹84 crore ($9.65 million) in FY2025, down from ₹109 crore ($12.53 million) the previous year. Revenues also slipped from ₹737 crore ($84.69 million) to ₹697 crore ($80.10 million).
The Mumbai Indians brand is arguably the most globally diversified among IPL franchises, with ownership stakes in SA20, Major League Cricket (MLC), the Women’s Premier League (WPL), International League T20, and The Hundred in England. However, that international footprint wasn’t enough to insulate the franchise from the year’s financial squeeze.
RCB suffers steepest revenue and profit decline
Royal Challengers Bengaluru, fresh off their maiden IPL title in June 2025, reported one of the sharpest financial declines among the three franchises.
The Diageo-owned club’s revenue fell to ₹514 crore ($59.07 million) in FY2025 from ₹649 crore ($74.58 million) in FY2024, while profits dropped to ₹140 crore ($16.09 million) from ₹222 crore ($25.51 million). The team still declared and paid an interim dividend of ₹120 crore ($13.79 million) to shareholders during the fiscal year.
While no single factor was cited for the financial slide, fewer IPL matches played by RCB during the fiscal year was a key driver. The IPL season typically spans late March to May, straddling two financial years.
As noted in ICRA’s credit rating report on RCB’s ownership group,
“However, the company’s FY2025 revenues will also depend on how many matches of IPL 2025 are played in Q4 FY2025.”
RCB also remains active in the Women’s Premier League, continuing to invest in the broader ecosystem of Indian cricket.
LSG slips into the red as franchise fee weighs heavy
Among the three franchises, Lucknow SuperGiants—owned by RPSG Sports, a subsidiary of RPSG Ventures—reported the most dramatic financial reversal. LSG posted a net loss of ₹72 crore ($8.27 million) in FY2025 on a turnover of ₹557 crore ($64.01 million). That compares to a ₹59 crore ($6.78 million) profit on ₹694 crore ($79.75 million) in revenue in FY2024.
A key factor impacting LSG’s bottom line is the ₹709 crore ($81.48 million) annual franchise fee it is obligated to pay until 2031, which places a heavy financial burden on the club regardless of season-to-season fluctuations.
Still, RPSG Ventures chairman Sanjiv Goenka remained optimistic about the long-term business trajectory:
“LSG has developed a strong fan base and enjoys healthy ticket revenues. It has also garnered attractive sponsorships. These, coupled with revenues from broadcast rights augur well for the business.”
RPSG’s broader cricket portfolio includes Durban SuperGiants in SA20, operated through its 51% stake in RSVPL, and a controlling stake in Manchester Originals in England’s The Hundred, acquired in February 2025.
BCCI distributions and the central revenue picture
While the individual franchises faced varying financial pressures, the Board of Control for Cricket in India (BCCI) reported strong central earnings for FY2024, a portion of which contributed to FY2025 team revenues. According to BCCI’s annual report:
Total IPL earnings: ₹11,703 crore ($1344.86 million)
Media rights: ₹8,744 crore ($1004.83 million)
Franchise fees: ₹2,163 crore ($248.56 million)
Sponsorships: ₹758 crore ($87.11 million)
Disbursed to IPL teams: ₹4,578 crore ($526.09 million)
It’s important to note that the original eight IPL franchises—excluding newer entrants like LSG and Gujarat Titans—are required to pay 20% of their income from net central rights, sponsorship, and ticketing revenue back to the BCCI as part of their franchise agreements.
Outlook: Success on-field, caution off-field
The fiscal results for FY2025 serve as a reminder that on-field success does not always translate to financial windfalls. While teams like RCB enjoyed historic victories, and others like MI and LSG continue to build international cricket empires, match scheduling, franchise fee obligations, and the timing of revenue recognition are emerging as pivotal variables in IPL franchise financial planning.The league’s growing complexity and overlapping fiscal years make quarter-by-quarter revenue forecasting more difficult for team owners, particularly as they expand globally and navigate rising costs. As the IPL continues to evolve into a year-round, multi-market brand, franchises will need to find new efficiencies and revenue streams to stay financially competitive.
