The Business of IPL: How Team Owners Turn Cricket into Crores

The transformation of cricket into a commercial powerhouse has redefined the sports business in India. What began as an experiment in franchise cricket became a case study in converting sporting passion into sustainable profit margins, with team owners commanding valuations that rival established multinational corporations.

The Billion-Dollar Revenue Engine

The IPL's financial architecture was supported by multiple revenue streams, which proved remarkably resilient in 2025. The Indian Premier League (IPL) solidified its position as a financial powerhouse, with its media rights deals alone generating a minimum of ₹12,000 crore for the season. ^[1] This represented the backbone of franchise profitability in the concluded season.

According to reports, the 2025 edition of the IPL is estimated to have generated $1.21 billion (₹10,415.5 crore) in domestic media revenue and ranked among the highest-earning sporting properties in the world. In 2023, the media rights for all seasons of the next four years were acquired by Viacom18 and Star Sports for US$6.4 billion (₹55,100 crore), valuing each IPL match at approximately $13.4 million (₹115.4 crore).^[2] 

Apart from marketing, advertisement revenues continued to show growth day by day.  The 2025 ad revenue forecast reached ₹4,500 crore as JioStar targets 100M subscribers.  The IPL produced $105.31 million in sponsorship revenue for the 2025 edition.^[4] 

Current Franchise Valuation

The year 2025 showed an incredible growth in big individual team valuations. According to the Brand Finance report, Chennai Super Kings priced their brands at $122 million (₹1,050.3 crore), making it the most valuable IPL franchise in 2025.^[5] 

As per the Brand Finance report, the IPL brand value touched $12 billion (₹99,840 crore) in 2025, which is a 13% increase from last year. Even the newer franchises witnessed similar rapid growth, facing much higher growth rates. Lucknow Super Giants now command a brand value of US$60 million (₹499.2 crore), having grown by 29% since last year.^[7] 

The newly crowned IPL 2025 champions, Royal Challengers Bengaluru, have seen a substantial surge in their brand valuation following their historic maiden title win. According to the Brand Finance IPL 2025 report, RCB is now estimated at $120 million (₹1,033.1 crore), marking a significant leap in commercial worth. ^[8] 

Global Expansion Strategy

Smart franchise owners have used the success of IPL  to invest in international sports.

In 2025, RPSG Group bought a 70% share of Manchester Originals for around £81 million (₹863.65 crore),and Mumbai Indians bagged a 49% stake in Oval Invincibles for £60 million (₹639 crore) in the Hundred league, reflecting how IPL success resulted in global cricket portfolio development.^[3]

The Sustainability Framework

Despite impressive growth metrics, franchise profitability required balancing operational costs with revenue generation. With projected valuations surpassing the $2 billion mark (₹17,218 crore) for top teams, franchises experienced a significant upswing following the World Cup^{. [6]}  Long-term sustainability requires ample innovation beyond standard broadcast and sponsorship grounds.

The Path Forward

The success of the business model in 2025 made headlines all over the world, while franchise owners demonstrated that commercial growth can be sustained. The league proved to be one of the rare sporting entities globally that saw brand value growth in double digits and continued growing internationally through strong business engineering.

The franchise owners matured into refined sports business operators as they profited from their passion for cricket. The evolution of the IPL has come to serve as an example that sports entertainment, when structured correctly, can create sustainable wealth while maintaining competitive integrity. With increasing valuations, franchise owners have demonstrated that modern sports business victories are achieved by building enduring commercial empires alongside championship wins.

References

1. The Bridge Chronicle. (2025, April 18). ‘IPL 2025 Revenue: Media Rights Hit ₹12,000 Cr, Ads to Cross ₹4,500 Cr.’ The Bridge Chronicle. https://www.thebridgechronicle.com/sports/ipl-2025-revenue-media-rights-advertising-growth
2. Globe Newswire. (2025, June 9). ‘The Indian Premier League (IPL) Report 2025: $1.21 Billion Domestic Media Revenue Projected.’ Globe Newswire https://www.globenewswire.com/news-release/2025/06/09/3095670/0/en/The-Indian-Premier-League-IPL-Report-2025-1-21-Billion-Domestic-Media-Revenue-Projected.html
3. BBC Sports News. (2025, February 3). ‘Lucknow owners agree deal for Manchester Originals’. BBC Sports News. https://www.bbc.com/sport/cricket/articles/c4g305xvl3lo

4. GlobalData. (2025, May 27). ‘2025 Indian Premier League estimated to generate $105.31 million in sponsorship revenue.’ GlobalData. https://www.globaldata.com/media/sport/2025-indian-premier-league-estimated-generate-105-31-million-sponsorship-revenue-reveals-globaldata/

5. CricTracker. (2025, June 11). ‘IPL 2025: Teams with the biggest brand value growth’. CricTracker. https://www.crictracker.com/cricket-appeal/which-ipl-teams-increased-their-brand-value-in-2025/
6. RNC. (2025, May 27). ‘Cricket Team Valuation in IPL 2025 Amid ICC World Cup.’ RNC. https://rakeshnarula.com/valuation-of-a-cricket-team-in-ipl-amid-icc-world-cup-2025/

7. Brand Finance. (2024, December 4). ‘IPL’s elite clubs: Brand value of four franchises soar above $100 million for the first time’. Brand Finance. https://brandfinance.com/press-releases/ipls-elite-clubs-brand-value-of-four-franchises-soar-above-100-million-for-the-first-time

8. Brand Finance. (2024, December 4). ‘New data: Four IPL brands break $100 million brand value mark for the first time AND THE SECOND!!’ Brand Finance. https://staging.brandfinance.com/insights/new-data-four-ipl-brands-break-100-million-brand-value-mark-for-the-first-time?utm_source=chatgpt.com