RCB sold for record $1.78 billion, RR for $1.63 billion

The deal for 100% of RCB, which includes both the men’s Indian Premier league team and the Women’s Premier League team, according to a statement by the consortium, followed the news of another IPL sale. A consortium led by Arizona tech entrepreneur Kal Somani is buying the Rajasthan Royals for $1.63 billion.

Somani is backed by Walmart heir Rob Walton, and Sheila Ford Hamp, a descendant of both the Ford and Firestone families, according to an official privy to the bidding details.

Both deals have to be approved by the Board of Control for Cricket in India (BCCI), the IPL Governing Council and regulatory bodies.

They mark a significant increase in the valuation of IPL teams from the last time the league expanded in 2021. The combined price of expansion teams Gujarat Titans and Lucknow Super Giants was $1.6 billion. And last year, when Torrent Pharma took a 67% stake in Gujarat Titans, the Ahmedabad franchise was valued at $800 million.

The RCB sale follows a strategic review by United Spirits Ltd., the Indian unit of Diageo Plc, which owns the franchise through Royal Challengers Sports Pvt. Initial reports put the asking price at $2 billion.

“Over the past 2 decades, the IPL has morphed to become a global sporting powerhouse that has changed the face of Indian cricket creating enormous value for India. RCB, as one of the most compelling franchises in modern sport, offers the Aditya Birla Group a distinctive platform to extend its legacy of institution-building into the arena of global sport. We are delighted to become custodians of this asset and committed to further building this extraordinary legacy,” said Kumar Mangalam Birla, chairman of the Aditya Birla Group, in the statement.

Aryaman Vikram Birla, director, Aditya Birla Group, will serve as chairman and Satyan Gajwani of The Times of India Group will serve as vice-chairman of the franchise, the statement said.

The transaction is the first sports team investment for Blackstone, Bloomberg reported. The firm is investing through its Private Equity Strategies fund, its fund for wealthy individuals.

Times Group has investments in the US-based Major League Cricket and England’s The Hundred tournament.

The other member of the consortium, Bolt Ventures, is owned by US sports investor David Blitzer. He has ownership stakes in Crystal Palace FC (EPL), the Philadelphia 76ers (NBA), the New Jersey Devils (NHL), the Washington Commanders (NFL), the Cleveland Guardians (MLB), Real Salt Lake (MLS), and other franchises.

The RR consortium too has extensive interests in sport ownership.

Rob Walton, the eldest son of Walmart founder Sam Walton, bought NFL team Denver Broncos for $4.7 billion in 2022. He also owns a 10 percent stake in Major League Baseball (MLB) team Arizona Diamondbacks. Sheila Ford Hamp is the principal owner and chairwoman of NFL franchise Detroit Lions.

Somani, who became an early investor in Tomorrow Golf League (TGL) through co-ownership in Motor City Golf Club, became a minority stakeholder in Rajasthan Royals in 2021.

According to his LinkedIn profile, Somani has founded and led several tech ventures, including IntraEdge and Truyo.AI.

RR was put to sale by majority owner Manoj Badale, one of the founders of the team.

Around the time the franchise was last restructured in 2021, Badale’s Emerging Media raised its stake to 65%, which in addition to previous stake increases, was seen as a prelude to a sale. Around the same time, RedBird Capital Partners, owners of AC Milan and investors in the holding company of MLB’s Boston Red Sox and Liverpool FC, picked up a 15% stake in RR. Redbird will walk away with a 6x return.

“It’s great news for the IPL,” Sourav Ganguly, former India captain and BCCI president said at an event. “I played the first ball in IPL — KKR vs RCB and we smashed them in the Chinnaswamy Stadium in Bengaluru. To see IPL reach these heights is phenomenal. Some of the buyers are from America. The game going to that part of the world is great for Indian cricket. Mind-boggling numbers for a league that’s played two-and-a-half months a year.”

When Ganguly played the first edition, RR was the least valued franchise at $67 million.

The new team valuations of RR and RCB could set the tone for the upcoming round (2028-32) of IPL media rights sale. The league demonstrated its commercial appeal in 2023, when broadcasting rights through 2027 were sold for a total of $6.2 billion. However, the IPL’s overall valuation has declined for two consecutive years. After peaking at $11.2 billion in 2023, the valuation fell to $9.9 billion in 2024 and subsequently dropped nearly 11% to $8.8 billion last year. A report by consulting firm D&P Advisory attributes this decline to the ban on online gaming apps in India and the consolidation of media rights.