IPL valuation soars to $18.5B, up 12.9% from last year
What's the story
The Indian Premier League (IPL) has witnessed an unprecedented surge in its business valuation, now standing at a whopping $18.5 billion (₹1.56 lakh crore). This is a massive 12.9% increase from last year, according to the latest report by global investment bank Houlihan Lokey. The report highlights IPL's position as one of the most valuable sports leagues globally and its growing commercial appeal and fan engagement in the digital space.
Brand valuation
Brand value grows by 13.8% to $3.9 billion
The report also highlights a significant increase in IPL's brand value, which has grown by 13.8% in 2025 to reach $3.9 billion (₹32,721 crore). This is a 16.1% year-on-year increase.. The analysis emphasizes that this growth further establishes IPL as a global powerhouse with an extensive reach and strong fan engagement, especially in the digital realm. Since launching in 2008, the IPL has grown into a multibillion-dollar enterprise and remains one of the world's most valuable sports leagues.
Operational excellence
Operational agility and resilience
The 2025 IPL season is a testament to the league's resilience and operational agility, according to the report. Even after being briefly suspended due to geopolitical tensions in early May, it resumed quickly with strong contingency planning and stakeholder coordination. This highlights IPL's ability to navigate challenges while maintaining its commercial appeal and fan engagement levels.
Financial growth
Franchise valuations have skyrocketed
The report notes that IPL's franchise valuations have skyrocketed and media rights deals have hit record highs. Top franchises earn between ₹6.5 billion and ₹7 billion annually, with up to 80% visibility before the tournament starts. A salary cap of ₹1.2 billion per team acts as a margin protector against wage inflation, ensuring competitive balance among teams while allowing them to leverage existing stadium infrastructure provided by the Board of Control for Cricket in India (BCCI) for their operations.
Business model
'High-growth compounder in entertainment space for institutional investors'
Compared to global peers like EPL and NBA teams, which struggle with high player transfer fees, variable wages, and high stadium operating costs (including servicing stadium debt), IPL franchisees follow an asset-light, revenue-guaranteed model. This structure not only provides downside protection but also boosts operating leverage on the upside. The study describes IPL as a "high-growth compounder in the entertainment space" for institutional investors catering to a fast-growing fan base with rising disposable income.