In October 2021, Sanjiv Goenka walked into the BCCI office room and placed a bid that shocked Indian cricket. ₹7,090 crore. $945 million. For the Lucknow Super Giants franchise that didn’t exist, had zero players, zero fans, and zero history.
He wasn’t alone. CVC Capital Partners paid ₹5,625 crore ($750 million) for Gujarat Titans. Combined, the two new IPL franchises cost $1.69 billion, more than the Los Angeles Clippers, Liverpool FC, or any sports team except a handful globally.
Fast forward to 2025, and financial analysts project new IPL franchises would cost ₹15,000-20,000 crore ($1.8-2.4 billion). That’s double what Lucknow and Gujarat paid just four years ago.
This is the real cost of buying an IPL franchise in 2025, and why billionaires keep lining up to pay astronomical prices that seem insane until you understand the economics behind cricket’s richest league.
IPL Franchise Costs and Valuations (2008 vs 2025)
Original Eight Franchises (2008)
Purchase Prices Then vs Brand Values Now:
- Mumbai Indians: ₹448 crore ($111.9M) → Now worth $242M (116% increase)
- Royal Challengers Bangalore: ₹335 crore ($84M) → Now worth $269M (220% increase)
- Chennai Super Kings: ₹289 crore ($73M) → Now worth $235M (222% increase)
- Delhi Capitals: ₹280 crore ($70M) → Now worth $152M (117% increase)
- Kolkata Knight Riders: ₹225 crore ($56.5M) → Now worth $227M (302% increase)
- Punjab Kings: ₹228 crore ($57M) → Now worth $141M (147% increase)
- Rajasthan Royals: ₹203 crore ($50.8M) → Now worth $146M (187% increase)
- Sunrisers Hyderabad: ₹170 crore ($42.5M in 2012) → Now worth $152M (257% increase)
New Franchises (2022)
- Lucknow Super Giants: ₹7,090 crore ($945M) → Now worth $122M brand value
- Gujarat Titans: ₹5,625 crore ($750M) → Now worth $142M brand value
The math doesn’t add up at first glance. Gujarat Titans paid $750 million for their franchise in 2022, and three years later the team is valued at $142 million. That’s an 81% loss in value on paper. Yet CVC Capital Partners, one of the world’s largest private equity firms managing $186 billion in assets, considered it a smart investment.
Why? Because IPL franchise economics don’t work like traditional sports investments. Teams generate billions over decades through media rights, expanding sponsorships, global fanbase growth, and the most valuable asset nobody discusses: permanent access to India’s $18.5 billion cricket economy.
What Does It Actually Cost to Buy an IPL Franchise Today?
Estimated Purchase Price in 2025
If the BCCI announced two new IPL franchises tomorrow, financial analysts project base prices between ₹15,000 crore to ₹20,000 crore ($1.8-2.4 billion) per team. That’s double what Lucknow and Gujarat paid in 2021.
Estimated IPL Franchise Purchase Cost (2025):
- Minimum bid expected: ₹15,000 crore ($1.8 billion)
- Realistic winning bid: ₹18,000-22,000 crore ($2.2-2.6 billion)
- Premium markets (Mumbai, Bangalore, Delhi proximity): ₹25,000+ crore ($3+ billion)
Why the Massive Increase?
Factor 1: The $6.2 Billion Media Rights Deal
In 2022, the IPL sold domestic media rights to Disney Star and Viacom18 for ₹48,390 crore ($6.2 billion) covering 2023-2027. That’s $1.24 billion annually, triple the previous deal.
Per Team Media Rights Revenue:
- 2018-2022 cycle: ₹300 crore ($40M) per team annually
- 2023-2027 cycle: ₹600+ crore ($80M) per team annually
- 2028-2032 projected: ₹900-1,200 crore ($120-150M) per team annually
Every IPL franchise now receives guaranteed annual media revenue exceeding $80 million regardless of performance. Even if a team finishes last every season, they still collect $400+ million over five years from broadcast rights alone.
Factor 2: IPL’s Total Value Explosion
The IPL’s total business value reached $18.5 billion in 2025, up from $16.4 billion in 2024 and $10.7 billion in 2023.
IPL Business Value Growth:
- 2009: $2 billion
- 2023: $10.7 billion
- 2024: $16.4 billion
- 2025: $18.5 billion
- Growth 2023-2025: 73% in two years
As the overall league value increases, individual franchise values increase proportionally. New teams entering now buy into an $18.5 billion business versus $6-8 billion when Lucknow and Gujarat joined in 2022.
Factor 3: Proven Franchise Appreciation
The original eight IPL franchises purchased in 2008 have all appreciated dramatically:
- Mukesh Ambani paid $111.9M for Mumbai Indians in 2008. Current brand value: $242M (116% return)
- N. Srinivasan paid $73M for Chennai Super Kings in 2008. Current brand value: $235M (222% return)
- Shah Rukh Khan paid $56.5M for Kolkata Knight Riders in 2008. Current brand value: $227M (302% return)
These returns exclude annual profits distributed to owners, which range from ₹50-200 crore ($6-25 million) per team annually depending on performance and cost management.
The Hidden Costs: Beyond the Purchase Price
Player Auction and Salaries
IPL 2025 Salary Cap:
- Total purse per team: ₹120 crore ($14.4M)
- Minimum of 18 players, maximum of 25 players per squad
- Minimum spend: ₹90 crore (75% of cap)
- Maximum of 8 overseas players (only 4 can play per match)
Most Expensive IPL Players (2025 Auction):
- Rishabh Pant: ₹27 crore ($3.2M) to Lucknow Super Giants
- Shreyas Iyer: ₹26.75 crore ($3.2M) to Punjab Kings
- Venkatesh Iyer: ₹23.75 crore ($2.8M) to Kolkata Knight Riders
- Yuzvendra Chahal: ₹18 crore ($2.16M) to Punjab Kings
- Jos Buttler: ₹15.75 crore ($1.89M) to Gujarat Titans
New franchises entering the league must build entire squads from scratch. Established teams retain 3-4 core players before auctions, giving them roster stability.
Coaching Staff and Support Personnel
Annual Coaching/Support Staff Costs:
- Head coach salary: ₹5-12 crore ($600K-$1.4M annually)
- Batting/bowling/fielding coaches: ₹2-5 crore each
- Physiotherapist, trainer, nutritionist: ₹1-3 crore each
- Team manager, video analyst, data scientists: ₹50 lakh-2 crore each
- Total annual coaching/support staff budget: ₹20-35 crore ($2.4-4.2M)
Infrastructure and Operations
Stadium and Training Facilities:
- Stadium rental/partnership fees: ₹5-15 crore ($600K-$1.8M annually)
- Training facility costs: ₹3-8 crore ($360K-$960K annually)
- Practice equipment and gear: ₹2-4 crore ($240K-$480K annually)
Team Operations Budget:
- Travel and accommodation (domestic): ₹8-12 crore ($960K-$1.4M)
- International player travel: ₹2-4 crore ($240K-$480K)
- Hotels during tournament: ₹5-8 crore ($600K-$960K)
- Team logistics and security: ₹3-5 crore ($360K-$600K)
- Medical insurance and health: ₹2-3 crore ($240K-$360K)
- Total annual operations: ₹20-32 crore ($2.4-$3.8M)
Marketing and Brand Building
First Year Marketing Investment:
- Brand identity creation (logo, colors, anthem): ₹5-10 crore ($600K-$1.2M one-time)
- Digital marketing and social media: ₹8-15 crore ($960K-$1.8M annually)
- Traditional advertising (TV, print, outdoor): ₹15-25 crore ($1.8-3M annually)
- Fan engagement programs: ₹5-10 crore ($600K-$1.2M annually)
- Merchandise production and distribution: ₹10-15 crore ($1.2-1.8M annually)
- Total first-year marketing: ₹45-75 crore ($5.4-9M)
Total First Year Investment:
- Franchise purchase price: ₹15,000-20,000 crore ($1.8-2.4B)
- Player salaries: ₹120 crore ($14.4M)
- Coaching/support staff: ₹25 crore ($3M)
- Infrastructure setup: ₹30 crore ($3.6M)
- Operations: ₹25 crore ($3M)
- Marketing and brand building: ₹60 crore ($7.2M)
- Contingency and miscellaneous: ₹20 crore ($2.4M)
- Total First Year: ₹15,280-20,280 crore ($1.83-2.43 billion)
How IPL Franchises Make Money
Revenue Stream 1: Central Media Rights Pool
Every IPL team receives an equal share of the $6.2 billion media rights deal:
Guaranteed Annual Revenue:
- ₹48,390 crore total over 5 years (2023-2027)
- Divided by 10 teams = ₹4,839 crore per team over 5 years
- Per team annually: ₹968 crore ($116M)
This is guaranteed money. Whether a team finishes first or last, they receive the same media rights payment.
But the distribution isn’t entirely equal. The BCCI uses a complex formula:
- 45% distributed equally (₹435 crore per team)
- 45% based on viewership/popularity (₹100-700 crore depending on fanbase)
- 10% performance-based (₹50-150 crore based on wins)
Actual Media Rights Revenue by Team (Estimated):
- Mumbai Indians, Chennai Super Kings, Royal Challengers Bangalore: ₹1,000-1,100 crore ($120-132M) annually
- Delhi Capitals, Kolkata Knight Riders, Rajasthan Royals: ₹900-1,000 crore ($108-120M)
- Punjab Kings, Gujarat Titans, Sunrisers Hyderabad: ₹800-900 crore ($96-108M)
- Lucknow Super Giants: ₹750-800 crore ($90-96M)
Revenue Stream 2: Sponsorships
Team Sponsorship Categories:
Title Sponsor (Jersey Front):
- Mumbai Indians: ₹20-25 crore annually
- Chennai Super Kings: ₹18-22 crore annually
- Mid-tier teams: ₹12-18 crore annually
- New teams: ₹8-15 crore annually
Associate Sponsors:
- 5-8 sponsors at ₹3-8 crore each
- Total associate sponsorship: ₹25-40 crore annually
Total Sponsorship Revenue:
- Top franchises (MI, CSK, RCB): ₹60-80 crore ($7.2-9.6M annually)
- Mid-tier franchises: ₹40-60 crore ($4.8-7.2M annually)
- New/smaller franchises: ₹25-40 crore ($3-4.8M annually)
Revenue Stream 3: Ticket Sales and Matchday Revenue
IPL teams play 7 home matches in the league stage (potentially 8-9 if they host playoffs):
Ticket Revenue Per Match:
- Average stadium capacity: 40,000-50,000
- Average ticket price: ₹800-2,000
- Sold-out match ticket revenue: ₹3.2-10 crore per match
Season Ticket Revenue:
- 7 home matches × ₹6 crore average = ₹42 crore ($5M annually)
- Top franchises with larger stadiums: ₹60-70 crore ($7.2-8.4M)
- New franchises building fanbases: ₹25-35 crore ($3-4.2M)
Revenue Stream 4: Merchandise and Licensing
Jersey Sales and Merchandise:
- Mumbai Indians, Chennai Super Kings, Royal Challengers Bangalore each sell 800,000+ jerseys annually
- Jerseys priced ₹1,500-3,500
- Revenue per top franchise: ₹15-25 crore ($1.8-3M annually)
- Mid-tier teams: ₹8-15 crore
- New teams: ₹3-8 crore
The Profitability Math: Do IPL Franchises Actually Make Money?
Annual Cost Structure
- Player salaries: ₹120 crore
- Coaching/support staff: ₹25 crore
- Operations and logistics: ₹25 crore
- Marketing: ₹40 crore
- Stadium partnerships: ₹10 crore
- Total costs: ₹220 crore ($26.4M minimum)
Total Annual Revenue (By Team Category)
Top Tier Franchises (MI, CSK, RCB):
- Media rights: ₹1,000-1,100 crore
- Sponsorships: ₹70 crore
- Ticket sales: ₹60 crore
- Merchandise: ₹20 crore
- International franchises: ₹10 crore
- Total: ₹1,160-1,260 crore ($139-151M annually)
Mid Tier Franchises (KKR, DC, RR, SRH, GT, PBKS):
- Media rights: ₹850-950 crore
- Sponsorships: ₹50 crore
- Ticket sales: ₹40 crore
- Merchandise: ₹12 crore
- Total: ₹952-1,052 crore ($114-126M annually)
New/Smaller Franchises (LSG):
- Media rights: ₹750-800 crore
- Sponsorships: ₹35 crore
- Ticket sales: ₹30 crore
- Merchandise: ₹6 crore
- Total: ₹821-871 crore ($98-104M annually)
Profit Calculation for Mumbai Indians:
- Revenue: ₹1,200 crore ($144M)
- Costs: ₹250 crore ($30M)
- Profit: ₹950 crore ($114M annually)
Why the Gujarat Titans “Lost” $600 Million in Value
Brand Value vs Enterprise Value
CVC Capital Partners paid $750 million for Gujarat Titans in 2022. Houlihan Lokey’s 2025 report values Gujarat’s brand at just $142 million. Did CVC lose $608 million in three years?
No. Brand value does not equal enterprise value.
Brand value measures what the “Gujarat Titans” name and logo are worth independent of the business.
Enterprise value includes the entire franchise: player contracts, stadium partnerships, media rights shares, sponsorship deals, fan base, and future revenue streams.
Gujarat Titans Enterprise Value (2025 Estimate):
- ₹6,500-7,500 crore ($780-900M)
- Profit from franchise: ₹150-200 crore annually ($18-24M)
- 3-year profits: ₹450-600 crore ($54-72M)
- Franchise appreciation: ₹100-150 crore ($12-18M)
CVC hasn’t lost money. They’ve generated moderate returns while building a championship-winning franchise (Gujarat won 2022 IPL in debut season). The real payoff comes in 10-15 years when they sell for $1.5-2 billion to the next buyer.
Is an IPL Franchise Worth ₹20,000 Crore?
The Investment Returns Timeline
Years 1-5:
- Initial investment: ₹20,000 crore
- Annual operating costs: ₹250 crore
- Annual revenue: ₹900-1,100 crore
- Annual profit: ₹650-850 crore
- 5-year cumulative profit: ₹3,250-4,250 crore ($390-510M)
- Return on investment: 16-21% of initial capital recovered
Years 6-10:
- Media rights deal renewed (2028): Revenue increases 40-50%
- Annual revenue projected: ₹1,300-1,600 crore
- Annual profit: ₹1,000-1,300 crore
- 5-year cumulative profit: ₹5,000-6,500 crore ($600-780M)
- Total 10-year profit: ₹8,250-10,750 crore ($990M-1.29B)
- Return through profit alone: 41-54% of initial investment
Year 15 Exit:
- Sell franchise for: ₹35,000-45,000 crore ($4.2-5.4B)
- Profit from sale: ₹15,000-25,000 crore ($1.8-3B)
- Total profit (distributions + appreciation): ₹23,250-35,750 crore ($2.79-4.29B)
- Total return: 116-179% over 15 years
- Annualized return: 5.4-7.1% compounded
For Comparison
- S&P 500 historical return: 10% annually (pure financial investment with no prestige)
- Commercial real estate: 6-8% annually (illiquid, management intensive)
- Government bonds: 4-6% annually (safe but boring)
- IPL franchise: 5.4-7.1% annually + prestige + tax benefits + generational wealth
The Bottom Line: Cricket Royalty Has a Price
The Ambani family paid $112M for Mumbai Indians in 2008. The team is now worth $2-2.5 billion while generating ₹950 crore annual profit. That’s an 18x return over 17 years (18.2% compounded annually) plus billions in distributions.
Sanjiv Goenka paid $945M for Lucknow Super Giants in 2022. If the team appreciates at just 8% annually, it’ll be worth $2.04 billion in 2032 while generating $400-500 million in cumulative profits. Total return: 177% in 10 years.
CVC Capital Partners paid $750M for Gujarat Titans in 2022. The team won the championship immediately, establishing instant brand value. By 2030, Gujarat projects $1.5-1.8 billion enterprise value plus $300-400 million in distributed profits.
An IPL franchise in 2025 is worth ₹20,000 crore if:
- You have $3-5 billion in net worth (so $2.4B doesn’t overextend you)
- You can afford ₹250 crore annual operating costs
- You’re patient enough to wait 10-15 years for full returns
- You value prestige, brand building, and sports ownership beyond pure ROI
- You believe India’s cricket economy will grow from $18.5B to $35-50B by 2035
If those conditions apply, buying an IPL franchise might be the smartest investment you’ll ever make. Not because the returns are astronomical. But because in 2040, when your grandchildren ask how your family became cricket royalty in a nation of 1.5 billion people who worship the sport, you can say: “We paid ₹20,000 crore in 2025 when everyone else thought we were crazy.”
And by 2040, when the franchise is worth ₹60,000 crore and generates ₹2,000 crore annually in profit while your family name is synonymous with Indian cricket, nobody will call you crazy anymore.
That’s the real cost of buying an IPL franchise. And that’s why billionaires keep lining up to pay it.
