With its valuations skyrocketing over the years, the Indian Premier League (IPL), a franchise-owned cricket league, has emerged as a lucrative business opportunity for investors. In 2009, the average value of eight IPL franchises was $67 million, according to Forbes. However, the league has recently expanded to ten clubs, and the average franchise valuation is now $1.04 billion, representing a 24% annualised growth rate. Over the last 13 years, the growth rate for NFL team values has been 10% and 16% for NBA team values.
The Mumbai Indians are now worth $1.3 billion, which is more than six MLB teams, 27 NHL teams, and every MLS team combined. The top ten franchises in the league are the Chennai Super Kings, Kolkata Knight Riders, Lucknow Super Giants, Delhi Capitals, Royal Challengers Bangalore, Rajasthan Royals, Sunrisers Hyderabad, Punjab Kings, and Gujarat Titans, with valuations ranging from $850 million to $1.15 billion.
1. Mumbai Indians: $1.3 billion
The Mumbai Indians' success on and off the field has increased their market value. The revenue of the five-time champions is $33 million, with an operating income of $5.5 million. The team recently signed a three-year sponsorship agreement worth Rs 100 crore with digital payments company Slice.
2. Chennai Super Kings: $1.15 billion
Chennai Super Kings, the league's second-most successful franchise with four titles, is valued at $1.15 billion. In February 2022, the team became India's first sports unicorn, with a reported value of Rs 7600 crore. The revenue of the Chennai Super Kings is $41.2 million, with an operating income of $14.8 million.
3. Kolkata Knight Riders: $1.1 billion
Kolkata Knight Riders, owned by Bollywood star Shah Rukh Khan, has reached a billion-dollar valuation. According to a Forbes article from 2022, the team's revenue is $41.2 million, with an operating income of $14.1 million.
4. Lucknow Super Giants: $1.075 billion
New participants, Lucknow Super Giants, within a year of its formation, rocketed into the top half of the valuation rankings. After finishing third in the previous season of the IPL, the RP-Sanjiv Goenka Group-owned franchise has a valuation of $1.075 billion.
5. Delhi Capitals: $1.035 billion
The GMR Group and JSW Group jointly own Delhi Capitals, which is valued at $1.035 billion. The team announced a multi-year partnership with EV infrastructure provider Bolt to become the primary sponsor of IPL 2022. The revenue of the Delhi Capitals is $35.4 million, with an operating income of $8.3 million.
6. Royal Challengers Bangalore: $1.025 billion
Despite its popularity, Royal Challengers Bangalore ranks quite low in the valuation rankings, with an overall valuation of $1.025 billion. According to Forbes, their revenue and operating income in 2022 will be $36.4 million and $9.7 million, respectively.
7. Rajasthan Royals: $1 billion
Emerging Media Ltd owns Rajasthan Royals and has a $1 billion valuation. The team has a $6.6 million operating income and has signed a multi-year partnership with Dollar Industries to be their primary sponsor ahead of IPL 2022.
8: Sunrisers Hyderabad: $970 million
Sun Network Ltd owns Sunrisers Hyderabad, which has a market value of $970 million. Revenue and operating income for the team are $31 million and $3.2 million, respectively.
9. Punjab Kings: $925 million
At $925 million, Punjab Kings has the lowest valuation of any IPL franchise. The team's revenue is $31.2 million, with a $9.8 million operating profit.
10. Gujarat Titans: $850 million
Gujarat Titans, IPL champions in their inaugural season, are valued at $850 million. CVC Capital Partners owns the franchise, and it plans to have another successful season in IPL 2023.