USL on Wednesday, entered into definitive agreements to sell its 100 per cent% stake in RCSPL to a consortium comprising Aditya Birla Group, The Times of India Group, Bolt Ventures, and Blackstone’s BXPE in an all-cash deal | Photo Credit: MURALI KUMAR K

United Spirits Ltd’s (USL) ₹16,660-crore sale of Royal Challengers Bengaluru (RCB) to a consortium led by Aditya Birla Group underscores surging IPL franchise valuations, as investors bet on the Indian cricket industry’s long-term growth driven by digital consumption, media rights, and global expansion, according to analysts and industry experts.

The liquor giant, on Wednesday, entered into definitive agreements to sell its 100 per cent stake in Royal Challengers Sports Pvt Ltd (RCSPL) to a consortium comprising Aditya Birla Group, The Times of India Group, Bolt Ventures, and Blackstone’s BXPE in an all-cash deal. RCSPL owns and operates the RCB franchises in the IPL and WPL, with ownership transferring to the consortium upon completion.

According to USL’s annual report, in FY25, RCSPL reported revenue from operations of ₹504 crore, a 21 per cent decrease, primarily due to a lower number of Men’s Indian Premier League (IPL) matches played by RCB. Profit for the year fell to ₹140 crore from ₹222 crore in the previous fiscal, also impacted by the reduced match count. RCSPL contributed 1.9 per cent to USL’s standalone revenue from operations and net worth, with its net worth standing at ₹321 crore as of March 31, 2025.

Strong structural tailwinds

Despite the near-term dip, experts point to strong structural tailwinds underpinning IPL franchise valuations. “The IPL’s valuation surge is not just about who is investing, but how the underlying consumption story in India has evolved,” said Satish Meena, advisor at Datum Intelligence. “With cheap data post-Jio and smartphone-led viewing, the league has moved from TV-limited reach to mass digital consumption. That has expanded both eyeballs and ad spends significantly.”

He added that what was once a modest revenue model is now “a proper business,” with per-match economics scaling sharply. “Investors are betting on long-term growth, not quick flips. Over the next decade, rising fan engagement, commerce opportunities, and higher media rights will continue to drive value.”

Lloyd Mathias, business strategist and independent director, said the back-to-back deals involving RCB and Rajasthan Royals underscore the IPL’s emergence as a global sporting property, comparable to leagues such as the NBA and the English Premier League. He pointed to three key drivers: scarcity value, with only 10 franchises; assured revenue streams from lucrative media rights deals; and the prestige associated with team ownership, alongside high-profile global investors.

Under the current media rights cycle (2023–2027), valued at over ₹48,000 crore, franchises receive a steady annual payout, creating predictable cash flows.

Alongside, IPL franchises are expanding beyond India, aided by the growth of women’s cricket and rising global interest, further strengthening long-term value creation.

“The PE firms are mostly seeking out an increased valuation 5-6 years from now. On the other hand, for a large diversified group like Aditya Birla, the advantage is that they can use it to promote any one of their various companies. And for Diageo, it’s a great exit. It’s a win-win for everybody involved,” he highlighted.

Harish Bijoor, business and brand strategy expert, said the investment case remains compelling given cricket’s enduring and growing appeal in India and among the diaspora. “Any investment in an IPL team is fundamentally strong,” he said, citing deepening engagement and expanding monetisation avenues.

Published on March 25, 2026