Pitch perfect for private equity as the IPL investment playbook draws global investors

Synopsis

Several team owners have extended their footprint into overseas T20 leagues such as South Africa's SA20, the UAE's ILT20 and England's The Hundred. This has effectively transformed franchises into multi-league cricket portfolios, transforming them from single-league entities into scalable global platforms with diversified revenue streams and greater upside for investors.

MUMBAI: The Indian Premier League (IPL) is fast emerging as an institutional-grade asset, attracting strong interest from global private equity firms such as Blackstone, KKR, EQT and Temasek, driven by stable profitability anchored in lucrative media rights, a steadily expanding fan base, and the enduring appeal of live sports as one of the last major categories of appointment viewing in an increasingly on-demand world.

What distinguishes the IPL is its unique position at the intersection of media growth and franchise expansion.

Several team owners have extended their footprint into overseas T20 leagues such as South Africa's SA20, the UAE's ILT20 and England's The Hundred. This has effectively transformed franchises into multi-league cricket portfolios, transforming them from single-league entities into scalable global platforms with diversified revenue streams and greater upside for investors.

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Recent transactions underscore the surge in valuations.

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A consortium of Aditya Birla Group, The Times of India, Bolt Ventures and a Blackstone fund acquired Royal Challengers Bengaluru for $1.78 billion, while Rajasthan Royals was valued at $1.63 billion in a deal led by Kal Somani, backed by Rob Walton and the Hamp family. Most IPL teams generate Rs 500-700 crore in annual revenue with Rs 100-200 crore profit, barring Gujarat Titans. The league has also drawn investors like the Glazer family and the Josh Harris-David Blitzer combine, signalling a structural shift as rising valuations make private equity central to future ownership. The RCB investment is Blackstone's first investment in a sports franchise in India.

In addition to Blackstone, Temasek, KKR and EQT have evaluated stakes in franchises such as Royal Challengers Bengaluru and Rajasthan Royals. Firms like Tiger Global have also shown interest. Earlier, in 2021, RedBird Capital invested $37.5 million in Rajasthan Royals at a $250 million valuation. The same year, CVC Capital Partners acquired the Ahmedabad franchise, Gujarat Titans, for Rs 5,625 crore. In March, CVC completed a 67% sale to Torrent for Rs 5,362 crore, valuing the franchise at Rs 8,003 crore, according to Torrent Investments' filings.

Viral Patel, chief executive officer of Blackstone's perpetual private equity strategy, BXPE, said the firm's investment in Royal Challengers Bengaluru builds on its long-term commitment to India. "RCB stands out as one of the most popular sports franchises in the world, with a powerful brand, a loyal fan base, and multiple avenues for growth. Together with our partners, we look forward to supporting the franchise's enduring legacy and continued success," he said.

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So what's driving private equity interest in the IPL?

According to the CEO of a leading franchise, team valuations do not align with revenues when assessed through traditional metrics. However, the investment thesis has shifted beyond multiples, with investors betting on long-term growth, exponential market expansion and the continued rise in sports rights costs, which is fuelling capital into the sector.

"If you think about sports as an institutional asset, it is really the sharpest expression of a consumer play. Long-term secular growth is almost guaranteed. But because monetisation must play out over multiple cycles with sometimes uncertain interim outcomes, only those pools of capital that have staying power can make current valuations work," said Vivek Gupta, Partner, M&A and PE Lead, Deloitte South Asia.

Experts say the evolving dynamic is increasingly being reinforced by broader market trends and investor behaviour.

"The deal sizes are steadily increasing, larger private equity players are stepping in, and early investors exiting these funds are seeing strong returns," said Amit Khandelwal, managing partner, strategy & transactions, EY India. "With limited avenues for new team creation, particularly in leagues like the IPL, competition remains constrained, while franchises benefit from stable ebitda margins and consistent long-term returns. This model has already been validated across US and European leagues, and a similar playbook is now unfolding in India, with momentum set to build further."

Earlier entrants include CVC Capital Partners in Gujarat Titans and RedBird Capital Partners in Rajasthan Royals. Gulf-based funds have also held informal discussions to acquire stakes in IPL franchises, although no deals have materialised so far. Meanwhile, the UAE cricket board runs the International League T20, where Indian business leaders and global investors own teams, and Saudi Arabia has shown increasing interest in India's cricket ecosystem.

According to PitchBook, global private equity investment in sports crossed $60 billion in 2024, with firms such as Arctos, RedBird Capital and Sixth Street investing across major leagues from the NBA to European football.

Sports team deal values reached $23.6 billion through August, according to S&P Global Market Intelligence. This surge has been driven largely by private equity investors such as Arctos Sports Partners, Ares, CVC, Silver Lake, RedBird, MSP Sports Capital and Sixth Street. As leagues ease ownership rules and valuations continue to rise, supported by predictable revenues and limited team supply, sports assets are increasingly emerging as a preferred long-term investment avenue for institutional capital.

Private equity played a defining role in 2025's biggest sports deals, with two of the top 10 investments involving such capital, according to S&P Global Market Intelligence. In March, an investor group led by Sixth Street Partners agreed to acquire a majority stake in Banner Seventeen LLC, which owns the Boston Celtics in the National Basketball Association, for $6.10 billion. In July, Velocity Sports Ltd., backed by Alk Capital LLC, agreed to acquire RCD Espanyol of La Liga for $152 million.

India's sports economy crossed the $2 billion milestone for the first time in 2025, reaching Rs 18,864 crore ($2.1 billion), according to WPP Media's latest Sporting Nation report.

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