The Real Cost of Buying an IPL Franchise in 2025

In October 2021, Sanjiv Goenka walked into the BCCI auction 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.

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IPL Franchise Costs and Valuations (2008 vs 2025)

Original Eight Franchises (2008)

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. 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.

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.

What Does It Actually Cost to Buy an IPL Franchise Today?

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 Ahmedabad paid in 2021.

Estimated IPL Franchise Purchase Cost (2025)

Base Franchise Fee:

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? Three factors changed between 2021 and 2025:

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.

When bidders evaluate franchise costs, they calculate: “If I pay $2 billion, I receive $400 million guaranteed over the next five years, then $600-750 million over the following five years. By year 10, I’ve recovered half my investment through media rights alone before accounting for tickets, sponsorships, merchandise, or team appreciation.”

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. The league’s standalone brand value hit $3.9 billion, a 13.8% year-over-year increase.

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. If the IPL as a whole is worth $18.5 billion and there are 10 teams, the average franchise theoretical value is $1.85 billion. New teams entering now buy into a $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/Juhi Chawla 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. When factoring in cash distributions over 17 years, total returns exceed 500-800% for successful franchises.

New bidders in 2025 are betting their $2 billion investment becomes $5-8 billion by 2040 while generating $50-100 million annually in distributions.

The Hidden Costs: Beyond the Purchase Price

Buying an IPL franchise isn’t just paying the BCCI’s auction price. Owners face massive additional costs before the first match:

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. New teams start with zero players and must spend aggressively to build competitive squads, often overpaying for talent.

Gujarat Titans won the championship in their debut 2022 season, but spent their full ₹90 crore salary cap. Lucknow Super Giants reached playoffs in both 2022 and 2023 seasons, maxing out their budget to remain competitive.

Annual Player Salary Reality:

Successful franchise player costs: ₹120 crore ($14.4M annually)
Over 5 years: ₹600 crore ($72M total)

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)

Top coaches command premium salaries. Stephen Fleming (CSK), Ricky Ponting (DC), and Gary Kirsten have all earned ₹8-12 crore annually. New franchises must either hire experienced coaches at top rates or risk underperformance with budget options.

Infrastructure and Operations

Stadium and Training Facilities:

IPL franchises don’t typically own stadiums but must pay:

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)

Chennai Super Kings paid to build private practice facilities at MA Chidambaram Stadium. Mumbai Indians have dedicated training grounds at Reliance Corporate Park. New franchises must invest ₹20-50 crore ($2.4-6M) building infrastructure before first season.

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:

New franchises must build fan bases from zero. This requires massive marketing spend:

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)

Established franchises like Mumbai Indians, Chennai Super Kings, and Royal Challengers Bangalore spend ₹30-50 crore annually maintaining existing fan bases. New teams must spend double or triple to create fan bases from scratch.

Total First Year Investment

Complete First-Year Cost for New IPL Franchise:

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)

And that’s just year one. Ongoing annual costs (players, staff, operations, marketing) range from ₹200-300 crore ($24-36M) for competitive teams.

How IPL Franchises Make Money

Given costs exceeding ₹300 crore annually, how do franchises generate revenue? The IPL operates on six primary revenue streams, with media rights providing guaranteed baseline income supplemented by performance-dependent earnings.

Revenue Stream 1: Central Media Rights Pool

Guaranteed Annual Revenue:

Every IPL team receives an equal share of the $6.2 billion media rights deal:

₹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. This baseline income covers player salaries (₹120 crore), staff costs (₹25 crore), operations (₹25 crore), and marketing (₹40 crore), leaving ₹758 crore ($91M) in profit before accounting for other revenue sources.

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:

IPL franchises sell various sponsorship tiers:

Title Sponsor (Jersey Front):

Mumbai Indians: ₹20-25 crore annually (major brands)
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

Merchandise Partner:

Kit manufacturer deals: ₹5-12 crore annually

Digital/Social Media Partner:

₹2-5 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

Stadium Revenue Per Match:

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

Concessions and Merchandise:

Food/beverage sales: ₹50-80 lakh per match
Merchandise sales: ₹30-60 lakh per match

Total Per Home Match: ₹4-11 crore

Season Ticket Revenue:

7 home matches x ₹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: Prize Money

The BCCI distributes ₹143 crore ($17.2M) in prize money:

Winners: ₹20 crore ($2.4M)
Runners-up: ₹12.5 crore ($1.5M)
Third/fourth place (playoff losers): ₹8.75 crore each
Teams finishing 5th-8th: ₹3-5 crore each
Fair play award: ₹1 crore

Prize money is minimal compared to other revenue sources but provides incentive for performance.

Revenue Stream 5: 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

Licensing and Brand Extensions:

Franchise logos on products: ₹3-8 crore annually
Theme restaurants/cafes: ₹2-5 crore
Gaming/NFT partnerships: ₹5-10 crore

Revenue Stream 6: International Franchise Investments

Mumbai Indians, Chennai Super Kings, and other IPL teams now own franchises in:

Caribbean Premier League (CPL)
International League T20 (ILT20 in UAE)
Major League Cricket (MLC in USA)
SA20 (South Africa)
The Hundred (England)

These investments create new revenue streams:

Franchise ownership profits: ₹5-15 crore annually per international team
Brand licensing fees: ₹3-8 crore
Shared player development: Reduced scouting costs

Mumbai Indians purchased 49% of MI London (The Hundred) for £60M in December 2025. If MI London appreciates similarly to IPL franchises over 10-15 years, that investment returns 200-400% while generating annual licensing fees.

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)

The Profitability Math: Do IPL Franchises Actually Make Money?

On paper, top IPL franchises generate ₹200-400 crore ($24-48M) in annual profit. But several franchises operate at losses despite massive revenues.

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)

Profit Calculation

Mumbai Indians (One of the 2 most Successful Franchise):

Revenue: ₹1,200 crore ($144M)
Costs: ₹250 crore ($30M)
Profit: ₹950 crore ($114M annually)

Wait, that can’t be right. If Mumbai Indians generate ₹950 crore annual profit, their brand value should be ₹10,000+ crore, not $242M ($2,000 crore).

The discrepancy reveals that published “brand values” measure brand equity (what the brand name alone is worth), not franchise enterprise value (what someone would pay to own the entire business).

Actual Enterprise Value vs Brand Value:

Mumbai Indians brand value: $242M (₹2,000 crore)
Mumbai Indians enterprise value (estimated): $2-2.5 billion (₹16,000-20,000 crore)

Mukesh Ambani paid $111.9M for Mumbai Indians in 2008. The franchise is now worth $2-2.5 billion based on comparable sales (Lucknow $945M, Gujarat $750M) and revenue multiples (15-20x annual profit).

Ambani has received approximately ₹5,000-7,000 crore in distributions over 17 years while the team appreciated from $112M to $2+ billion. That’s 18x return on investment excluding annual profits.

Why the Gujarat Titans “Lost” $600 Million in 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 ≠ 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)
Total value created: ₹550-750 crore ($66-90M in 3 years)

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?

If someone offered you an IPL franchise tomorrow for ₹20,000 crore ($2.4 billion), should you buy it?

The financial math says yes, if you can afford it.

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

That 5.4-7.1% annual return might seem modest for a $2.4 billion investment. But consider:

It’s guaranteed revenue (media rights) with upside potential
You own a trophy asset that grants immense prestige
Tax benefits reduce effective investment cost by 20-30%
You become part of India’s cricket royalty alongside Ambanis, Srinivasans, and Shah Rukh Khan
Your family owns a billion-dollar sports franchise forever

For Comparison:

S&P 500 historical return: 10% annually (but 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 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.

The Real Answer:

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.