A news report on Friday has triggered massive interest in the Indian Premier League's valuation and how the world's richest cricket league stacks up against India's most valuable startups and firms that are part of the coveted Nifty 50 index.
Saudi Arabia has expressed interest in buying a multibillion-dollar stake in the Indian Premier League, Bloomberg News reported on Friday, citing people familiar with the matter.
Saudi Arabian Crown Prince Mohammed bin Salman's advisers have spoken to Indian government officials about moving the IPL into a holding company valued at as much as $30 billion (Rs 2.5 lakh crore), the report said.
The talks were held when the crown prince visited India in September for G20 Summit, the report said, adding that the kingdom proposed investing as much as $5 billion (Rs 41,500 crore) into the league and help lead an expansion into other countries.
The latest likely valuation is much higher than the previously estimated value of the IPL ecosystem at Rs 92,500 crore in 2023, which was up 6.3% compared to Rs 87,000 crore in 2022. In dollar terms, this translates to a growth from $10.9 billion, up 3.3 per cent to $11.2 billion, according to a report released by D&P Advisory.
If IPL was a startup, its $30-billion valuation will make it India's most valuable startup by a mile. During a $250-million fundraise in October 2022, edtech major Byju's was valued at $22 billion, but it later went through lot of turmoil, which led to massive markdowns in its valuation. In June 2023, Prosus saw the valuation of Byju's at $5.1 billion.
The $30-billion valuation means IPL is more valuable than 30 Nifty 50 companies, including ONGC, UltraTech Cement, Nestle, Tata Motors, Wipro, Coal India, DLF, and more. Flagship arm of Adani Group, Adani Enterprises, has m-cap a little over Rs 2.5 lakh crore.
The increased valuation of the tournament means the valuation of each franchise will also soar. A report by Houlihan Lokey, an US-based investment bank, said in July that MS Dhoni-led Chennai Super Kings (CSK) is placed first in both the brand ranking and business enterprise value rating with a brand worth of $212 million. At $195 million, Royal Challengers Bangalore (RCB) comes second in terms of brand value, followed by Rohit Sharma-led Mumbai Indians at $190 million. Shah Rukh Khan-owned Kolkata Knight Riders is in the fourth position at a brand valuation of $181 million.
Desi netizens couldn't stop gushing about the new valuation of the marquee tournament.
Meanwhile, reports said IPL auction will take place on December 19 in Dubai. It will be the first time that the IPL auction will be held outside India. November 26 has been set as the deadline for the franchise to submit the list of retained players, reported Cricinfo.