Two IPL Franchises Change Hands in Landmark Rs 31,000 Crore Double Sale
March 24 marked an unprecedented milestone in the commercial history of the Indian Premier League, with two founding franchises changing ownership on the same day in transactions totaling over Rs 31,000 crore. The Royal Challengers Bengaluru were acquired by a consortium led by the Aditya Birla Group for USD 1.78 billion (approximately Rs 16,700 crore), making RCB the costliest IPL franchise ever sold. Meanwhile, the Rajasthan Royals were purchased by a US-based consortium led by Kal Somani for USD 1.63 billion (roughly Rs 15,290 crore), underscoring the extraordinary global investor appetite for stakes in the world’s richest cricket competition.
Both franchises have participated in the IPL since its inaugural season in 2008, giving them a deep-rooted history and institutional identity. Their journeys mirror the IPL’s evolution from a domestic cricket experiment into a global sports entertainment phenomenon capable of attracting multi-billion-dollar investments.
The scale of the combined Rs 31,000 crore valuation has generated widespread scrutiny across financial, sporting, and media communities, raising questions about the economic rationale for such transaction prices relative to current IPL revenues. For the acquiring consortiums, these deals represent a strong vote of confidence in the long-term commercial trajectory of the IPL and the enduring brand value of RCB and Rajasthan Royals. Yet experts caution that conventional financial metrics suggest a notable gap between sales.
The most critical analysis has come from Santosh N, managing partner at D&P Advisory. Speaking to The Indian Express, he highlighted the tension between IPL franchises’ existing revenue streams and the multiples implied by the March 24 sales.
Santosh described the valuations as “very difficult to understand,” noting the contrast with the recent acquisition of the Gujarat Titans at a valuation below USD 1 billion. Within just a year, the implied valuations of RCB and Rajasthan Royals roughly doubled, a pace not clearly justified by conventional commercial developments. Santosh cited several factors that should, in theory, have limited franchise appreciation: the ban on real-money gaming, the lack of renewed broadcasting rights, and the absence of new marquee title sponsorship deals during the relevant period.
The core of the valuation debate lies in the revenue multiple these sales imply. IPL franchises currently earn around Rs 500 crore annually from the central broadcasting pool. Sponsorships, ticketing, and merchandise contribute an additional Rs 200–300 crore, producing total revenues of Rs 700–800 crore per franchise.
Given these numbers, the USD 1.63–1.78 billion purchase prices imply a revenue multiple of approximately twenty times—a premium that would be considered aggressive even in high-growth sectors. Such a multiple assumes extraordinary confidence in future growth, including higher broadcasting rights, expanding sponsorship revenue, and brand monetization opportunities that go beyond current financial performance.
















