IPL's $30 Billion Valuation Outshines India's Hottest Startups

The Indian Premier League (IPL) is making headlines with its staggering valuation and the potential investment interest from Saudi Arabia. The league, known as the world's richest cricket league, is on the verge of becoming even more financially robust. Here's a breakdown of the situation:

Saudi Arabia's Interest: Saudi Arabian Crown Prince Mohammed bin Salman's advisors have reportedly engaged with Indian government officials to explore the possibility of investing in the IPL. Their proposal involves creating a holding company with a valuation as high as $30 billion (approximately Rs 2.5 lakh crore). This significant investment could reach up to $5 billion (about Rs 41,500 crore) to not only support the league but also to facilitate its expansion into other countries.

Unprecedented Valuation: The proposed valuation of the IPL, set at $30 billion, has raised eyebrows in the business world. This valuation would put IPL ahead of numerous Indian startups in terms of market capitalization. In fact, it would surpass the market capitalization of 30 companies listed on the Nifty 50, including major corporations like ONGC, UltraTech Cement, Nestle, Tata Motors, Wipro, Coal India, and DLF. For perspective, even Adani Enterprises, a flagship company of the Adani Group, has a market capitalization just slightly over Rs 2.5 lakh crore.

Franchise Boost: The higher valuation of the IPL would also significantly impact the franchises associated with the league. One report by Houlihan Lokey, a US-based investment bank, noted that the Chennai Super Kings (CSK), led by MS Dhoni, holds the top position in both brand ranking and business enterprise value. The CSK brand is valued at a whopping $212 million. The Royal Challengers Bangalore (RCB) takes the second spot in brand value at $195 million, with the Rohit Sharma-led Mumbai Indians close behind at $190 million. The brand valuation of Shah Rukh Khan-owned Kolkata Knight Riders stands at $181 million.

Auction Details: As excitement about the league's future continues to grow, it's reported that the IPL auction is scheduled to take place in Dubai on December 19. This is a first for the IPL, as the auction has traditionally been held within India. To kickstart the process, franchises have until November 26 to submit their lists of retained players.

The IPL's soaring valuation and the potential involvement of Saudi Arabia have sparked enthusiasm among cricket enthusiasts and investors alike. This development could position the IPL among India's top 20 companies by market capitalization if it were to be listed on the stock market. The future looks promising for the world's most lucrative cricket league.