Blackstone, the world’s largest alternative asset managers with offices in London and all across the world, has made the foray into cricket’s Indian Premier League (IPL). The giant, along with Aditya Birla Group, The Times of India Group, Bolt Ventures, acquired back-to-back champions Royal Challengers Bengaluru (RCB) for approximately US$1.78 billion (£1.35 billion).
A billion-dollar franchise is an attractive proposition for any investor. It is even more attractive when you consider RCB have not yet existed for two decades.The IPL has evolved into one of global sport’s fast-growing money-making engines, with fiercely loyal fanbases, limited supply of just 10 franchises, and guaranteed earnings from a central revenue pool making the league a gold mine for investors.
Each franchise pulls in approximately $52 million per season from central revenue distributions alone, in addition to sponsorship contracts, ticket sales and bonuses for qualifying for the playoffs. Also, each team has a salary cap, ensuring costs are predictable and the franchises remain profitable.
Cricket “functions as a near-religious institution” in India according to Arvind Navaratnam of investment-research firm Worldly Partners. He believes investors have a huge opportunity to tap into a digitally-led fanbase.
“The IPL’s young, mobile-first fanbase is well suited to the kind of direct-to-consumer monetization, through apps, fantasy, gaming and branded content, that U.S. sports have been doing for years,” he said.
This demand has fueled an unprecedented surge in broadcast and media value in cricket. The IPL’s first broadcast deal was $1.03 billion for the first 10 seasons (2008-17). Fast forward another six years, and the rights exploded to $6.2 billion for the 2023-27 period, with broadcast revenue of $15.1 million per match even ahead of the English Premier League (EPL).
By acquiring RCB, Blackstone taps into a franchise and league with incredible brand power. RCB, despite years of underachievement on the field, has a young and passionate fanbase, superstar associations, and strong digital footprint.
“We are excited to invest in RCB, building on Blackstone’s long-standing commitment to India,” said Viral Patel, Chief Executive Officer of Blackstone Private Equity Strategies Fund (BXPE). “RCB stands out as one of the most popular sports franchises in the world with a powerful brand, a loyal fan base, and multiple avenues for growth. Together with our partners, we look forward to supporting the franchise’s enduring legacy and continued success.”
Blackstone’s acquisition is likely to trigger a domino effect. Global investors — including sovereign funds, private equity, and strategic entertainment players — now view IPL franchises as high‑growth investments that can deliver significant return on investment (ROI).
Earlier this year, CVC Capital sold their 67% stake in IPL franchise Gujarat Titans (GT), reaping in a 350% ROI after purchasing the franchise in 2021. Lachlan Murdoch, Executive Chair and Chief Executive Officer of Fox Corporation made a 92x return on the sale of Rajasthan Royals (RR).
James Walton, sports business group leader at Deloitte Asia Pacific, says huge audience and financial stability makes the IPL an attractive proposition for investors.
“IPL has become highly attractive to investors because it combines strong capital appreciation potential with stable, recurring cash flows,” he told CNBC.
“Compared with global deal benchmarks, IPL returns stand out for their speed and growth profile.”
