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Billion-dollar IPL deals: Do team valuations add up or signal influence? | Business

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The news that two Indian Premier League (IPL) teams, Royal Challengers Bengaluru (RCB) and Rajasthan Royals (RR), have both changed hands for over $1.6 billion each has obviously made headlines. Both buyouts involved consortiums, and ownership will formally change only after the upcoming 2026 season.

 

Sports team buyouts are hardly new. But these two deals set new standards for the IPL with top-line numbers that hit, as Sourav Ganguly pointed out, National Basketball Association (NBA) levels. Considering English football as a benchmark, only the “Big Six” of Manchester United, Liverpool, Arsenal, Chelsea, Manchester City and Tottenham Hotspur are valued higher than RCB and RR. 

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(Incidentally, the family of the late, great Shane Warne has been set up for life since the leg-spinner had cleverly negotiated a deal where he took a tiny stake in RR in lieu of compensation. That stake is now worth roughly ₹460 crore.) 

 


All sorts of people buy sports teams. Saudi Arabia’s Public Investment Fund paid GBP 305 million in 2021, for example, to buy 80 per cent of English football club Newcastle United. Back in 2003, Russian oligarch Roman Abramovich bought Chelsea for GBP 140 million. He was forced to sell it after the Ukraine invasion when he came under sanctions. Real Madrid – probably the world’s richest club – by contrast is set up as a non-profit owned by some 90,000 “socios”, or individuals. Barcelona has a similar socio ownership structure.

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The concept of club ownership would be incomprehensible for traditional value investors seeking concrete returns on investment (RoI). For example, RCB declared profits of ₹140 crore on revenues of ₹550 crore in financial year 2024–25 (FY25). The consortium led by the Aditya Birla Group, which bought it, paid $1.78 billion, or around ₹16,600 crore, for a 100 per cent stake.

 


Kal Somani, Walmart and co-investors paid roughly ₹15,300 crore for the RR franchise, which reportedly had an operating income (earnings before interest and tax, or EBIT) of ₹54 crore in FY25. Given the numbers, RoI at the valuations paid is very low. Even if optimistic growth multiples are assigned to the two franchises, the RoI would remain lower than parking that money in Government of India debt.

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Every IPL franchise receives an equal payout every season – approximately ₹484 crore in 2025 – from the Board of Control for Cricket in India’s (BCCI’s) central media rights pool. This is the largest chunk of franchise revenue. The rest of the income comes from ticket sales, merchandise and, above all, sponsorships.

 


As many people have pointed out, the valuations have expanded a lot over the two-decade timeframe. In 2007, RR was auctioned for $67 million in the original IPL auction. The $1.63 billion sale works out to a compound annual growth rate (CAGR) of around 18.5 per cent for the valuation. Similarly, the initial RCB auction price was $111.6 million, which means the $1.78 billion exit reflects a CAGR of 16.5 per cent. (There have been interim sales and transfers of ownership.)

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The financials are similar for many other sports teams. RoI tends to be low because valuations are very high, and in many cases, teams operate at a loss.

 


So why would hard-headed businessmen and investors buy sports teams? There are several answers to that question, and most of them are perhaps partially correct. In some cases, this is out of sheer passion. The new owners happen to be deeply interested in the sport in question, and they have the money to indulge their “hobby”.

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Second, there’s optimism. “Brand value”, however you define it, has obviously grown by leaps and bounds for all IPL outfits in the last 20 years. Maybe brand value will continue growing at similar rates in future, especially if a smart, highly connected owner (or a consortium of highly connected owners) is in charge. Hope springs eternal.

 


There’s also the “greater fool theory”, which is often cited by market traders. This can be roughly defined as: “It’s fine to buy something at an inflated value if you reckon you can find a greater fool who will buy it off you at an even higher value.” That attitude has triggered all sorts of financial bubbles over the centuries.

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And, of course, if valuation does continue to inflate indefinitely, you may not even need to exit for a profit. The valuation can be monetised in other ways. For example, the stock market boosted the share price of United Spirits instantly when RCB won the 2025 IPL. There are already advisories out referencing the positive stock market impact of these buyouts.

 


The killer application with sports and sports investments, however, is something that is hard to accurately quantify. Organised sports is all about politics and influence, and having seats at the high table. The heads of the Fédération Internationale de Football Association (FIFA) and the International Olympic Committee (IOC), for example, can meet any global head of state, pretty much whenever they please. The leadership of the International Cricket Council (ICC) and the BCCI have similar privileges where cricket-playing nations are concerned. That influence may be hard to quantify, but it is easy to monetise, and it is something hard-headed investors will pay for.

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Wilson produces superb fightback to beat Moody, 19

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Kyren Wilson produced a superb fightback from 6-2 and 7-3 down by winning seven frames in a row to deny 19-year-old Stan Moody a memorable victory on his World Championship debut at the Crucible.

English teenager Moody led 6-3 at the mid-session interval and was on course to become the youngest player to win a match at the famous Sheffield theatre since a 19-year-old Ronnie O’Sullivan beat Dave Harold and Darren Morgan before falling to Stephen Hendry in 1995.

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In a thrilling match, arguably the best of the championship so far, 2024 champion Wilson punched the air in delight when he won the 17th frame on a black-ball finish to seal a 10-7 success after Moody had missed a chance to extend the match.

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“Just too many bad frames,” said Moody. “I had the match won at 7-3 but then I missed the red to go 8-3 and he won it with three snookers.

“I felt comfortable out there, but bad frames like that hurt. But I will come back stronger. Hopefully I will be here next year. I just try to learn what shots to play at the right time and to miss less balls.”

Moody, 44th in the world rankings, had to win two matches to qualify.

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On the day before his final qualifying match, last Tuesday, he had been in hospital with tonsillitis. But Moody discharged himself before playing, going against medical advice, and beat China’s Jiang Jun 10-9, with a century in the deciding frame, to earn his Crucible spot.

Stan Moody stretches over the snooker table to play a shot

Stan Moody is 44th in the world rankings and had to win two matches to qualify [PA Media]

Higgins and Ding advance into last 16

John Higgins

John Higgins has won the world title in 1998, 2007, 2009 and 2011 [Getty Images]

Four-time champion John Higgins had led 4-0 against Ali Carter on Sunday, only for the Englishman to win five frames in a row to hold the overnight lead.

Higgins, 50, made breaks of 63 and 81 to go ahead, before Carter’s 106 in frame 12 made it 6-6, although the Scot won four of the next five frames to advance 10-7.

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That sets up a last-16 match against either seven-time champion Ronnie O’Sullivan or Chinese debutant He Guoqiang.

“That’s the first time here I’ve been 4-0 up and then gone 5-4 behind so it was not a great sleep,” said Higgins. “But I tried to forget about that and get on with my game.

“There’s nobody that has more respect for Ali as a snooker player than me, I’ve played him so many times and sometimes he has been cueing like a dream.

“Deep down when my name was pulled out against him I was not happy – you know you’re in for a mammoth game so I’m over the moon I got the win.”

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Carter, beaten by O’Sullivan in the 2008 and 2012 finals, has now gone out in the first round in the Crucible in four years in a row.

“I made a couple of mistakes and got punished severely, just a little bit of a run of the balls – I’m as sick as a dog,” said Carter.

Ding Junhui, the 2016 runner-up, completed a 10-5 win over David Gilbert, having held a 7-2 lead following Sunday’s opening session.

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In an all-Chinese last-16 tie, Ding will take on Zhao Xintong, who became the country’s first world champion in 2025.

China’s 10th seed Wu Yize made one century and five half-centuries in a one-sided session to lead compatriot Lei Peifan 8-1.

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Capitals giving Ovechkin time to decompress before meeting about future

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The Washington Capitals are doing right by their franchise player as he mulls over one of the biggest decisions of his life.

With Alex Ovechkin‘s retirement decision looming over the team’s off-season plans, the Capitals have decided to give the franchise legend some space and time as he weighs the possibility of hanging up his skates.

“Team’s position is we’re giving him some time here to get away from the season a little bit and think things through and talk to his family, and then he’ll meet with both [president of hockey operations Brian MacLellan] and I, and we’ll continue to support him in however his decision process plays out,” Capitals general manager Chris Patrick told reporters at his end-of-season availability on Monday.

“We could’ve met with him the day after the season ended, but I don’t think he was ready at that point to have that conversation. I think he needs to take some time. Just get away from it, I mean, he just played 82 games in a really hard season, just have a few days with his family to just kind of veg out a little bit then he can start thinking about what the future holds.”

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Last week, at his own end-of-year availability, Ovechkin said that he hopes he hasn’t played his final NHL game and that he’s not yet ready to give a definitive answer on what his future holds.

He told reporters that he has something of a timeline figured out, stating that he may have a clearer idea of where he stands in two weeks, but that he’s “pretty sure it’s not my last game.”

Though Patrick said that the team would “like to know going into the draft” as to whether or not Ovechkin would return, he made it clear that the NHL’s all-time leading goalscorer had “earned the right to do the process how he wants to. So we’ll just work with whatever we get from him, information-wise.”

Either way, the Capitals are heading into the off-season prepared.

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With $36.5 million in projected cap space to work with this summer, per PuckPedia, the team believes they have the financial flexibility to improve their roster whether Ovechkin returns or not.

“I think we’ll be able to have a plan with or without him. No different than really any off-season where you have some players that are expiring. You can go down different paths depending on what happens with them,” Patrick said. “So same thing with him, even though he’s the greatest goalscorer of all time. If he decides to stay, we’ll go one way; if he decides to retire, we’ll go a different way.”

Ovechkin is coming off another solid campaign that saw him build on his all-time goal-scoring lead, potting 30 markers while suiting up for all 82 games at 40 years old. He also surpassed the 900-goal plateau, becoming the only player in NHL history to do so.

What may be harder to deal with should Ovechkin retire is the impact he provides off the ice, for the Capitals, the community, and for the game of hockey.

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“I think his presence is huge. When he decides to leave, it’s gonna leave a big hole, personality-wise, leadership-wise,” MacLellan said. “You see he brings it to the team plane, the team bus, to the dressing room, to pre-game warmup — he’s got a big presence.”

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The Speed Machine delivers in 2026 Mornington Sires

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Mick Price, the trainer, harked back to his pre-training experience by personally parading The Speed Machine at Mornington.

Trained by Mick Price alongside Michael Kent Jnr, the two-year-old gelding turned tricky at saddling time, leading Price to take charge of strapping duties prior to Saturday’s Mornington Sires (1000m).

The approach succeeded brilliantly as The Speed Machine ($3), ridden by Thomas Stockdale, dashed to the lead and held on by a half-neck from favourite Luna Vega ($2.50), with Zynaro ($11) 2-½ lengths adrift in third.

Price noted that red earmuffs are fitted to The Speed Machine for the pre-race parade and removed at the barriers.

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Observing the gelding as half-asleep, Price dispensed with the headgear post-saddling.

“His father (Hanseatic) used to have a bit of feist about him,” Price said.

“His father used to always have two strappers on him, and I did take the red earmuffs off him while we were saddling him up, because I thought he was half asleep.

“But I found out the wrong way. He was not asleep and I had to do my own work.”

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The Speed Machine has won both his starts, including a 1000m victory in a four-runner field on debut at Morphettville Parks last month.

Price doesn’t see him as solely a 1000m specialist and plans to test him at 1200m eventually.

The colours belong to Kempinsky, victor of The Vase at Moonee Valley and second in the Group 1 Victoria Derby at Flemington back in 2003.

“We’ve had horses together for 30 years, but we haven’t had a lot of starters over that time,” Price said.

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“He buys them, I move them on, but this one, he’s a keeper.

“He a fast horse, and he’s a strong horse, and he’s very sound, an easy horse to train.”

Discover the best betting sites offering markets for the Mornington Sires race.

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PGA Tour CEO says league is considering LIV Golf player returns

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PGA Tour CEO Brian Rolapp has addressed the reports and rumors involving LIV Golf’s future, or potential lack thereof, with a straightforward message about where the Tour’s priorities lie amid uncertain times.

Last week, it was widely reported that the Saudi Public Investment Fund (PIF) was preparing to cut off its funding of LIV Golf after announcing a five-year investment strategy focused on reprioritizing spending. With the Saudis being the sole funders of the breakaway golf circuit, a stoppage of funds would, in all likelihood, end the current iteration of LIV Golf.

LIV GOLF’S END MAY BE IMMINENT AFTER REPORT SIGNALS SAUDI ARABIA IS PREPARING TO CUT OFF FUNDING

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LIV Golf Mexico went on as scheduled over the weekend amid the very loud rumors. Two-time major champion Jon Rahm won the event, and on Sunday, LIV formally announced it would be returning to Mexico in 2027 at a currently unspecified date.

Jon Rahm swinging a golf club at Riyadh Golf Club in Saudi Arabia

Jon Rahm in action during the first round of play at LIV Golf Riyadh at the Riyadh Golf Club in Riyadh, Saudi Arabia, on Feb. 4, 2026. (Hamad I Mohammed/Reuters)

Rolapp, the former Executive Vice President of NFL Media, joined Monday’s edition of ‘The Pat McAfee Show‘ on ESPN and was transparent while sharing his thoughts about the reports and rumors involving LIV Golf.

BRYSON DECHAMBEAU CALLS OUT LIV GOLF MEXICO CITY COURSE CONDITIONS AMID FUNDING CONCERNS

Most notably, Rolapp admitted that the PGA Tour is thinking about potential pathways back for players who left the Tour to join the Saudi-backed league.

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“I think we’re thinking about it,” Rolapp said when asked about players potentially returning. “Listen, we’re reading all the same headlines you’re reading, we don’t know what’s going on over there [at LIV Golf]. We know that those guys are under contract, we’ll respect that.

PGA Tour CEO Brian Rolapp addresses media

PGA Tour CEO Brian Rolapp addresses media members at a press conference prior to THE PLAYERS Championship at Stadium Course at TPC Sawgrass on March 11, 2026 in Ponte Vedra Beach, Florida. (Tracy Wilcox/PGA TOUR via Getty Images)

“Brooks [Koepka] came back onto the Tour because he made a phone call and said, ‘Look, I’m out of my contract, I’m ready to come back.’ So, we’re thinking about it, and we’ll react when we have an opportunity to react, but right now we’re focused on making the PGA Tour better. I’ve said it publicly, and I’ll say it again, I’m interested in making whatever makes the PGA Tour better. That’s what my job is, that’s what I’m interested in doing, and that has no limit.”

Koepka, a five-time major winner, returned to the PGA Tour at the start of 2026 after joining LIV Golf in June 2022. He did so via the Tour’s ‘Returning Member Program,’ made only accessible to previous Tour members who have won The Players or a major championship between 2022 and 2025.

Brooks Koepka reacting after chipping in for birdie on the 17th hole at Oakmont Country Club

Brooks Koepka of the United States reacts after chipping in for birdie on the 17th hole during the second round of the 125th U.S. Open at Oakmont Country Club on June 13, 2025, in Oakmont, Pennsylvania. (Patrick Smith/Getty Images)

MATT FITZPATRICK HAS PERFECT RESPONSE TO USA RYDER CUP FANS AFTER PGA TOUR V

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Koepka agreed to make a $5 million charitable contribution upon his return to the Tour. He also agreed to include a five-year forfeiture of potential equity in the PGA Tour’s Player Equity Program, which estimates his potential losses to be approximately $50-$85 million. Koepka will also not receive any FedEx Cup bonus payment in 2026.

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Patrick Reed also left LIV Golf in early 2026 to seek a return to the PGA Tour. The former Masters champion is serving a one-year suspension that will end in August and is well on his way to earning back his PGA Tour card for 2027 with a pair of wins earlier this year on the DP World Tour.

Bryson DeChambeau, Tyrrell Hatton, Joaquin Niemann, Cameron Smith, and Rahm remain the most high-profile players competing on LIV Golf, and their return to the PGA Tour would undoubtedly fit into Rolapp’s focus of making the PGA Tour better.

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Rhea Ripley has heartwarming reaction to personal moment with Bianca Belair

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Rhea Ripley shared a heartfelt reaction to a personal moment with Bianca Belair at WWE WrestleMania 42. Ripley won a major title match at the biggest show of the year over the weekend.

Bianca Belair returned during Night 1 of WrestleMania 42 to make a huge announcement. The former champion made a surprise appearance at The Show of Shows to announce that she was pregnant.

Belair and the 29-year-old then had a heartfelt backstage interaction after her appearance, and the two stars shared a hug. Ripley reacted to her backstage moment with Belair today on her Instagram story with a heart emoji, and you can check it out in the image below.

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Ripley shared a heartfelt message today (Source: Rhea Ripley on Instagram)Ripley shared a heartfelt message today (Source: Rhea Ripley on Instagram)
Ripley shared a heartfelt message today (Source: Rhea Ripley on Instagram)

Bianca Belair has not competed in a match since WWE WrestleMania 41. She has missed over a year of action due to a hand injury suffered in the Triple Threat match against IYO SKY and Ripley last year on The Grandest Stage of Them All.

Rhea Ripley won the Women’s Elimination Chamber match to earn a title match against Jade Cargill at WrestleMania 42. Ripley defeated The Storm at the PLE to become the new WWE Women’s Champion.

Rhea Ripley opens up about using social media as a WWE Superstar

WWE Women’s Champion Rhea Ripley recently discussed how difficult it was to use social media as a public figure.

Speaking on Pod Meets World, The Eradicator opened up about the negativity she experiences on social media. Ripley stated that she needed to delete Twitter because all she sees are negative comments about herself when she uses the social media app.

“It’s really hard going on to Twitter. I need to delete that. It’s really hard going on and trying to make it a work environment. But then because it is a work environment, I get all these things coming up on my ‘For You’ page. As soon as I click on the app, it’s just negativity towards me,” she said.

Rhea Ripley and IYO SKY had a brief reign as Women’s Tag Team Champions earlier this year. SKY was not booked for a match at WrestleMania but did get involved in Ripley’s match against Cargill at WWE WrestleMania.

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B-Fab and Michin both attacked the challenger, but Sky made the save. Ripley connected with Riptide on Cargill to become champion, and it will be interesting to see what the promotion has planned for her title reign moving forward.