New Delhi: The Indian Premier League (IPL) was already the gold standard in franchise cricket, but it is safe to say the league has now comfortably transcended its projection as the best T20 league in the world to become one of the most sought-after global sporting properties. The latest sales of IPL franchises, Rajasthan Royals (RR) and Royal Challengers Bengaluru (RCB), at valuations of over $1.5 billion each, prove the league has already left behind the rest of the cricketing world to place itself in the conversation about the best in the global sports market.
Royal Challengers Bengaluru, who only won their first IPL title last year, have been acquired by Aditya Birla Group, Times of India Group-led consortium for $1.78 billion (Approximately Rs 16,706 crore), while Kal Somani-led consortium bought the Rajasthan Royals for $1.63 million (Approximately Rs 15,287 crore). The sales, the biggest in IPL’s history, make RCB and RR two of the most expensive franchises in the league.
The $6.2 billion worth IPL’s media rights deal for the 2023-27 cycle already placed the league as the second-most valuable sports property, only behind the NFL in terms of per-match value globally. But RCB and RR’s sale at a combined value of around $3.5 billion has sparked conversations about what the future holds for the phenomenon that is the IPL, and where the league sits in the global sports asset market.
While there was never a question about IPL being the best cricket league by a distance in terms of monetary value, brand value and global viewership, the franchises now being sold at valuations similar to those of elite sports teams/clubs around the world, begs for a reflection on how far the Indian league has come from the rest of the franchise cricket ecosystem.
IPL vs rest of franchise cricket
‘Cash-rich’ was a term extensively associated with the IPL during its initial years, with the kind of money the league brought into the global game. With the league’s appeal and valuation skyrocketing over the years, no other cricket league even comes close to where the IPL stands. Not in financial might, not in valuation and neither in future growth prospects.
The latest sales of the two IPL franchises have further raised the benchmark, proving the Indian league has gone where no other cricket league has. While RCB and RR have been sold for over a $1.5 billion each, the valuation of all eight franchises sold in The Hundred was only over $975 million combined. That highlights the stark difference in the economics of the IPL and other franchise cricket leagues.
Despite IPL being way ahead overall, many in Pakistan have often tried comparing the Pakistan Super League (PSL) with its Indian counterpart. However, the fact remains that PSL is nowhere near the IPL. Earlier this year, PSL’s Hyderabad and Sialkot franchises were sold for PKR 1.75 billion ($6.2 million approximately) and PKR 1.85 billion ($6.6 million), respectively, which is less than 1% of RCB or RR’s sale price.
None of the teams in the Big Bash League (BBL), the SA20, where the majority of the owners are those running IPL franchises, come close to the valuation of IPL teams.
How IPL teams compare to other franchise cricket leagues. (Infographic created from AI). Data courtesy: HT.
Where does IPL and its franchises sit in the global sports market?
IPL teams are not yet on the same pedestal as the elite sports clubs and teams around the world, but they are steadily catching up and closing the gap. For a league just 18 years old, IPL has undergone a remarkable transformation over the years and has witnessed tremendous growth, making it one of the hottest sporting properties.
But the IPL franchises still have a long way to go. In the wider sports economy, the elite band is currently dominated by the top NFL, NBA teams and some of the biggest European football clubs. As per Forbes, Real Madrid is the most valued football club at $6.6 billion, followed by the likes of Manchester United ($6.5 billion), Barcelona ($5.6 billion) and Liverpool ($5.3 billion).
English Premier League giants like Arsenal and Chelsea are also among the most valued clubs in the world, thanks to their global following. Chelsea are valued at around $3.25 billion, while Arsenal is valued at $3.4 billion. Chelsea was sold for a package of £4.25 billion (roughly $5.5 billion) in 2022, and the prices of RCB and RR prove the IPL franchises are not too far behind.
Where do IPL teams sit in the global sports ecosystem. (Infographic created from AI). Data courtesy: HT.
As per Forbes, the average valuation of the world’s top 30 football clubs is $2.4 billion. Meanwhile, the average valuation of an MLB team stands at $2.6 billion and an average NBA team is valued at $5.4 billion. Meanwhile, an average team in the NFL is worth over $7 billion. That shows IPL teams are not yet in the elite bracket when it comes to the global sporting market.
However, with a robust ecosystem in place and significant expansion opportunities, the IPL’s growth potential appears virtually boundless in the coming years, and that reflects in the league’s appeal to investors.
While IPL is comfortably sitting above every other cricket franchise league in the world, the price of RR and RCB put the teams fairly ahead of the cream in the MLS (Major League Soccer), where the most valued Los Angeles FC and Lionel Messi-starred Inter Miami are valued at $1.25 billion and $1.2 billion, respectively.