Valuation Mismatch In Rs 31,000 Crore-Plus Deals For RCB And RR? Expert Says: "Very Difficult To Understand" On March 24, two prominent Indian Premier League (IPL) franchises—Royal Challengers Bengaluru and Rajasthan Royals—changed ownership. Both teams have been part of the IPL since 2008. Royal Challengers Bengaluru was acquired by a consortium led by the Aditya Birla Group for Rs 16,700 crore, while Rajasthan Royals was purchased by a US-based Kal Somani-led consortium for Rs 15,290 crore. Combined, the two deals totaled over Rs 31,000 crore. The valuation of these teams has sparked confusion among experts. D&P Advisory, a valuation firm, noted a mismatch between the revenue generated by IPL teams and their purchase prices. The firm described the sale prices as "very difficult to understand," particularly given the broader context of the IPL’s financial landscape. Santosh N, managing partner at D&P Advisory, highlighted the discrepancy during an interview with The Indian Express. He pointed out that the Torrent Group recently acquired Gujarat Titans for less than a billion dollars, creating a stark contrast with the current valuations. Santosh explained that the IPL’s revenue streams, including broadcast money and sponsorships, are relatively modest. He estimated that each team generates around Rs 200 to Rs 300 crore from sponsorships, ticketing, and merchandise, with an additional Rs 500 crore from the central pool of broadcast revenue. This totals approximately Rs 700 to Rs 800 crore annually—less than a hundred million dollars. Despite this, the teams were valued at around 1.7 billion dollars, which he called a "20x revenue" valuation. The expert also criticized the timing of the valuations, noting that the IPL has faced challenges in the past year.#bcci #rajasthan_royals #aditya_birla_group #royal_challengers_bengaluru #d_p_advisory
