IPL could be expanded to 12 teams: All we know
What's the story
The Indian Premier League (IPL) could soon grow into a 12-team tournament from the 2028 season. The Board of Control for Cricket in India (BCCI) is reportedly considering adding at least two new franchises, marking the biggest change since 2022. According to Mint, Pune and Vadodara are the leading contenders for hosting these new teams. Here are further details.
Strategic timing
New franchises could exceed $1 billion each
The proposed IPL expansion is likely to coincide with the next media rights cycle, from 2028 to 2032.
Each new franchise could be worth over $1 billion, as interest from Indian business groups and international investment firms continues to grow.
This surge in interest can be attributed to a sharp rise in franchise values in recent years, driven largely by two major ownership deals.
Valuation impact
Major ownership deals that have driven investor interest
The two major ownership deals that have boosted investor confidence are the sale of Royal Challengers Bengaluru (RCB) and Rajasthan Royals (RR).
United Spirits, Diageo's Indian arm, agreed to sell Royal Challengers Bengaluru to a consortium including Aditya Birla Group, Bennett Coleman and Co. Blackstone, and Bolt Ventures for $1.78 billion.
Separately, a group led by Lakshmi Mittal's family and Adar Poonawalla bought Rajasthan Royals at a valuation of $1.65 billion.
Investor interest
Pune has hosted 2 IPL franchises in the past
Pune has bought two IPL franchises in the past: Pune Warriors India (2011-2013) and Rising Pune Supergiant (2016-2017). Both teams were short-lived due to various reasons.
Now, a long list of investors is said to be interested in the new franchises. These include private equity firm Permira, West Asian sovereign wealth funds, state-backed investment bodies from Asia, US-based family offices, and prominent Indian business conglomerates.
Strategic decisions
Things to consider before adding new teams
Before finalizing the addition of new teams, the BCCI has a few things to consider. The commercial viability for existing and new franchises is one of them.
Another major factor is the availability of top Indian players, as adding two more teams would dilute the talent pool.
Broadcasters will also have a say in this decision, as more franchises would mean more matches and higher media rights costs.
Growth opportunities
Strong case for expansion
Despite the challenges, there is a strong case for expansion. India is a huge market with cities eager to have their own teams.
New franchises would create more opportunities for domestic players, coaches, and support staff.
The high valuations of these potential new teams suggest that the business world believes in the continued growth of this product.