Franchises to drive the next phase of growth for IPL: D&P Advisory

For the first time in its history, the Indian Premier League’s (IPL) valuation has declined for two consecutive years. It has come down to Rs 76,100 crore in 2025 from Rs 82,700 crore in 2024 and Rs 92,500 crore in 2023.

D&P Advisory’s 2025 IPL-WPL Valuation Report, titled ‘Beyond 22 Yards – The Power of Platforms, The Price of Regulation’, attributes the 8% decline in the valuation to two factors: JioStar’s consolidation of media rights and the ban on Real Money Gaming (RMG) advertising.

The merger has ended the competitive tension that once fuelled “auction fever”, and the ban has pulled Rs 1,500–2,000 crore annually from the ecosystem, leaving a clear gap in broadcaster revenues, franchise deals, and fan engagement.

The report mentions that these twin shocks mark a reset for the league’s business model. 

But what does this valuation decline mean for the broadcaster’s and the league’s media rights?

Santosh N, managing partner, D&P Advisory, says BCCI will feel the pinch if broadcasters tighten their spending post-2027, as that would mean lower revenue inflows. It will have to find new ways to maximise monetisation of these rights. It could be through segmenting the rights or increasing the number of matches. 

D&P Advisory provides valuation and sports advisory services, including market research, to assist sporting leagues and teams with strategic decision-making, bid processes, business and brand valuation, player contract valuation, and broadcast rights valuation,  among others.

“The plan was to expand from 74 to 84 matches in 2025 and eventually to 94 in 2027. But that hasn’t happened. A major reason is the reluctance to schedule more 3:30 pm games, which fetch lower ad rates than prime-time matches. Unless the IPL window is extended by 10–15 days, increasing the number of matches remains difficult. But if that happens, both revenue and valuation of the property will naturally grow,” he explains.  

A new bidder for the media rights in 2027, especially a global player, would also be a huge positive for IPL valuations. However, Santosh says the probability of a new consortium or a global player stepping in is low. So the premium on the 2027 media rights may not be as high as once anticipated.

The media rights auction in 2022 saw The Walt Disney Company and Viacom, then two separate entities, fiercely competing, which pushed the valuation to a record Rs 48,000 crore for five years.

At the time, the expectation was that in 2027, there would be even stronger competition: Jio and Disney, plus a merged Sony Pictures Networks India–Zee Entertainment Enterprises, and possibly global players like Meta Platforms, YouTube, or Amazon entering the fray.

That would mean three strong contenders and potentially more, driving valuations up sharply. But in 2024, the Sony–Zee merger collapsed. 

“Sony on its own isn’t keen to invest at that scale, and Zee can’t. That effectively removes them as serious bidders, leaving only Disney and Jio. But since these two have now joined forces, there’s no bidding war. With no competition, why would the single broadcaster pay a premium?” says Santosh. 

From a broadcaster’s perspective, the impact will be on ad revenue. JioStar has seen solid growth in 2024 and 2025, but the upcoming season will be the first under the RMG ban. Santosh says that while the inventory will likely still sell due to other advertiser categories stepping in, the real challenge is replacing the specific type of advertiser that has been lost.

RMG platforms such as Dream11 or My11Circle were not just big spenders; their businesses were deeply tied to IPL. Their engagement and revenue spiked during the tournament, so their willingness and capacity to pay premium ad rates were far higher than traditional advertisers like FMCG or auto brands, who primarily chase reach and visibility.

“Now, with this category gone, finding advertisers who can match that level of spending will be tough. So, the broadcaster will likely fill the inventory, but the ad rates, and therefore revenue, will come under pressure. The 2026 season will be crucial to see how they navigate this gap,” he says.

The report mentions that RMG firms were among the highest-yield buyers of digital ad inventory, often paying premiums for dominance. “Their removal has left broadcasters scrambling to backfill with categories that spend less aggressively, leading to weaker CPMs despite record reach.”

This valuation dip will primarily impact the franchises. “Their ability to generate cash flows beyond 2027 could be hit if central pool revenues decline, which would directly affect their valuations,” he says.

Santosh believes that the next big growth for the league lies with the franchises. So they will have to build stronger revenue engines. 

“Through merchandising, fan engagement, loyalty programmes, and local sponsorships, they can double or even triple their own contribution. For example, if today’s 75:25 split becomes 75:75, the ecosystem’s total revenue effectively jumps 50%,” he suggests.

Currently about 70% of the IPL ecosystem’s revenue comes from media rights, and nearly 80% from the central pool. Franchise-led revenue contributes only around 20%. In contrast, in European football and U.S. leagues, central pool revenue makes up just 40–50%, with the rest coming from teams’ own income streams.

Meanwhile, the WPL ecosystem’s value has also decreased from Rs 1,350 crore in 2024 to Rs 1,275 crore in 2025, marking a 5.6% decline. 

Santosh predicts that the RMG ban is likely to drive advertisers away from the women’s league in the short term. 

Recently, RMG companies were willing to pay any price for IPL slots, driving ad rates so high that smaller brands couldn’t afford them. Many of these brands turned to WPL as an alternative. Though the viewership is smaller, it fits their budgets. Some viewed it as a strategic preparatory step before venturing into the IPL.

With the RMG ban, IPL ad rates are likely to face pricing pressure. This could allow some brands that had previously opted for WPL to return to IPL, creating short-term challenges for WPL. While the RMG ban may create short-term headwinds, Santosh believes the long-term outlook for WPL remains very positive.

“Two years ago, women’s cricket struggled for attention, but audiences are increasingly tuning in, even if only for 15–20 minutes at a time. Over the next few years, as engagement grows, brands will see stronger ROI and be willing to pay a premium,” he says.

Meanwhile, the report mentions that WPL is one of India’s fastest-growing broadcast properties.

Television ratings jumped by 150% year-on-year, and digital viewership grew by 70% in the opening game of WPL 2025. The overall television viewership increased by 142% year on year.

The report also mentions that IPL 2025 was the first time when the digital audience surpassed television. It remained the most-watched cricket league in the world, drawing over one billion viewers across TV and digital platforms.