CVC Capital’s 350% return on investment shows how the Indian Premier League has become a gold mine

Global equity firms and conglomerates have their sights set on the Indian Premier League (IPL). Earlier this year, European equity firm CVC Capital sold their majority stake in IPL franchise Gujarat Titans, generating a 350% return on its initial investment courtesy of year-on-year revenue and increase in the franchise’s overall value.

Gujarat Titans is one of the two newest IPL franchises, making their debut in 2022. CVC Capital, who also has stakes in Spain’s La Liga and Six Nations Rugby, purchased Gujarat Titans for approximately £568 million in 2021. In 2026, CVC sold a 67% stake to Indian business conglomerate Torrent Group for approximately £404.3 million, valuing the franchise at around £650 million.

Mammoth broadcast deal serves as the cornerstone of continued growth in the Indian Premier League

The sale served as a catalyst for renewed investor interest in the IPL, with insiders revealing CVC’s dela prompted a fresh wave of enquiries from private equity firms across the US and Europe. 

The league serves as a cash-generating behemoth; a product with a passionate audience, limited supply of 10 teams and significant sponsorship opportunities. This demand has resulted in broadcast revenues never seen before in cricket.

Between 2008 and 2023, the IPL’s broadcast rights skyrocketed 502%, cementing its status as one of the fastest‑growing leagues in world sport. From $1.03 billion for the 2008-17 cycle, the rights increased to $2.55 billion over five years from 2018, before exploding to $6.2 billion for the 2023-27 period.

According to Deloitte, the IPL’s broadcast revenue of $15.1 million per match sits second only to the NFL globally. It leaves the more established EPL, NBA and MLB in its wake, delivering an unrivalled burst of viewership and commercial intensity in such a short period.

IPL investment represents high yield, low volatility for investors

James Walton, sports business group leader at Deloitte Asia Pacific, says the IPL’s stability and fan loyalty is attractive to 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.”

Each franchise receives a set revenue pool every season; a share of up to $52 million. There is no risk of relegation, and there is the added financial benefit of sponsorship and brand activations, ticket sales and bonuses for qualifying to the playoffs. Also, each team has a salary cap, ensuring costs are predictable and the franchises remain profitable.

“India is becoming a sports-embracing nation. Home to 17.8 per cent of the world’s population, India will not just participate in the global sporting economy — it will reshape it,” said Raghav Gupta, founder and CEO of Fanatic Sports, as quoted by Business Standard.

“The business of sport here is becoming its own asset class, with its own audiences, its own economics, and its own heroes.”

The IPL 2026 season, spanning 74 matches, crossed 1.2 billion viewers across television and digital platforms. Such demand has led to franchises surging past the US$1 billion valuation mark, with Rajasthan Royals ($1.65 billion) and Royal Challengers Bengaluru ($1.78 billion) also recently sold to investors amid interest from a host of major shortlisted bidders.