- According to the 2025 D&P Advisory report “Beyond 22 Yards: The Power of Platforms, The Price of Regulation”, IPL’s valuation has dropped for the second consecutive year.
- That’s roughly a ₹16,400 crore decline (≈US$2.4 billion) over two years.
What’s Causing the Decline
Several key factors are cited:
- Collapse of media rights rivalry / consolidation in the media industry
- The merger of Disney Star and Viacom18 into JioStar has reduced competition in bidding for IPL’s TV and digital rights.
- When fewer players compete for rights, bidding is less intense, leading to lower prices.
- Ban on real-money gaming (RMG) advertising and sponsorships
- The government’s ban has removed a major category of advertisers who contributed ~₹1,500–2,000 crore annually to the IPL ecosystem.
- This has caused a direct drop in sponsorship revenues. Business Standard
- Structural reset / market recalibration
- With high past valuations driven by aggressive bidding and speculative value growth, there seems to be a shift toward more stable, predictable streams — for example, long-term advertisers in “brand-safe” sectors like BFSI, consumer tech, automotive, etc.
- Even though viewership (both TV and digital) remains strong, the monetisation pressures (rights, sponsorship) are changing.
Implications & What to Watch
- Lower future revenue from media & sponsorships: With fewer bidders and regulatory restrictions, the IPL may see muted growth in its rights auctions and sponsorship deals.
- Shift in advertiser mix: Loss of RMG sponsors means other sectors (BFSI, tech, healthcare etc.) will carry more weight. IPL franchises might need to build more diverse and stable brand partnerships.
- Impact for franchises & stakeholders: Decreased valuation may affect franchise valuations, investor interest, and financial planning (e.g. how much teams spend vs return).
- Regulatory environment critical: Changes in policy (gaming laws, advertising rules) have big impacts. Further regulation could either stabilize or further cut down revenue.
- Potential for innovation & efficiency: With valuation pressure, IPL might lean more on cost-efficiency, new digital products, regional content, new formats, interactive offerings to maintain engagement and monetisation.
Conclusion
The IPL’s valuation drop over two years marks a notable turning point — from a long period of almost uninterrupted growth to a phase where competition, regulation and changing industry structure are forcing a reset. While the cricketing spectacle and mass viewership remain strong, the financial engine behind IPL is under pressure to adapt.
