RCB, Rajasthan trades at 30x revenue

IPL franchise prices just did something weird. Two teams changed hands at valuations that look more like software startups than sports businesses. Royal Challengers Bengaluru sold in March 2026 for $1.78 billion, and Rajasthan Royals followed in May at about $1.65 billion. The catch is that these prices seem to sit around 30 times the teams’ last disclosed annual revenue — right when some analysts think the next IPL media-rights cycle may not grow much at all. ### What actually got sold? RCB was sold by United Spirits to a consortium led by Aditya Birla Group, with David Blitzer, Blackstone, and Satyan Gajwani also involved, in a deal Mint pegged at about ₹16,735.74 crore, or $1.78 billion. That package included both the men’s IPL side and the women’s WPL team. Rajasthan Royals then agreed a sale to the Mittal family and Adar Poonawalla at roughly $1.65 billion, with the buyers set to own about 75% and 18% respectively after closing; that deal also includes Paarl Royals in South Africa and Barbados Royals in the Caribbean. (livemint.com) ### Why does the 30x number matter? Because revenue multiples are the bluntest way to see how aggressive a valuation is. If a team does, say, ₹500 crore of annual operating revenue and sells for around ₹15,000 crore, you are in 30x territory. That is rich for almost any sports property, especially one whose biggest income stream still depends on a central league media-rights pot rather than a giant local stadium business or year-round ticket machine. (livemint.com) The multiple is basically investors saying future earnings will look much bigger than current ones. ### Where does IPL money usually come from? The engine is central media rights. The current 2023–27 IPL rights cycle was sold for ₹48,390.32 crore, and that money flows through the league to franchises along with central sponsorship revenue. Team owners then layer on local sponsors, merchandise, hospitality, and whatever they can build around the brand. That structure makes IPL teams unusually attractive — you get a globally visible sports asset with a fairly legible revenue waterfall. (livemint.com) ### So why are people uneasy now? Because league-level momentum has cooled a bit. D&P Advisory said in October 2025 that overall IPL valuation had fallen 8% to ₹76,100 crore in 2025 and could remain mostly flat in 2026, blaming media-rights consolidation after the JioStar merger and weaker competition for the next cycle. It also flagged the league’s dependence on broadcast income. If the next rights auction is merely flat, team prices racing upward start to look detached from the main cash engine. (business-standard.com) ### Then what are buyers really paying for? Scarcity first. There are only so many IPL teams, and almost none come to market. Brand power second — RCB in particular has one of the strongest fan bases in Indian sport, while Rajasthan has a multi-team platform across leagues and countries. Then there is optionality: more sponsorship inventory, more premium experiences, more digital commerce, more women’s cricket value, and maybe eventually a fuller year-round sports-media business wrapped around the team. (business-standard.com) ### Is this a bubble? Maybe — but not in the simple “prices are fake” sense. These are real assets with real cash flows and a huge audience base. But the valuation logic now depends less on what the teams earn today and more on what sophisticated buyers think they can unlock later. That is why the same deals can look rational to strategic investors and stretched to anyone anchoring on current revenue. (livemint.com) ### Why does this matter beyond cricket? Because it suggests the IPL is being priced less like a seasonal tournament and more like a scarce media platform. If that view holds, franchise values can keep outrunning today’s accounts. If media rights stall and new monetization does not show up fast enough, these 2026 deals may end up looking like the top tick. (business-standard.com) ### Bottom line? The new RCB and Rajasthan prices are not really a bet on last year’s revenue. They are a bet that the IPL’s best teams become something bigger than teams — premium, scarce sports-media brands that keep compounding long after the next TV deal stops doing the heavy lifting. (livemint.com) (theprobe.in)