The Indian Premier League (IPL) — once the fastest-growing sports franchise in the world — has seen its valuation drop for the second consecutive year. According to D&P Advisory’s Beyond 22 Yards 2025 report, the IPL ecosystem’s value slipped from ₹92,500 crore in 2023 to ₹82,700 crore in 2024, and further down to ₹76,100 crore in 2025, marking a cumulative 17.7% decline in just two seasons.
Business leader Harsh Goenka, echoing these findings, outlined five sharp reasons behind the slump — from media consolidation and ad bans to global cricket fatigue. Here’s a deep dive into the forces behind this slowdown.
Media Rights Merger: The End of the Bidding War
The 2024 Disney Star–Viacom18 merger fundamentally changed the IPL’s economics. The formation of JioStar, a joint sports broadcasting powerhouse, combined the Star Sports and Sports18 networks under one umbrella. With no competing bidders for future rights, broadcasters no longer face bidding wars, leading to stagnant media rights valuations.
This consolidation, valued at $8.5 billion, was meant to create efficiency — but it also eliminated the competitive tension that previously drove up IPL’s media rights, its biggest revenue source accounting for nearly 60% of league earnings.
Online Gaming Ban: The Advertising Vacuum
The Online Gaming Act, 2025 delivered another blow. The law prohibited real-money fantasy and gaming platforms like Dream11, My11Circle, and WinZO from advertising during sporting events. This single regulatory action wiped out nearly ₹15,000 crore in IPL ad revenue, roughly a quarter of its total advertising ecosystem.
Without these deep-pocketed advertisers, IPL lost one of its most lucrative categories. Analysts say the move led to flat ad revenues despite record viewership and fan engagement — a worrying sign for broadcasters counting on ad-rate escalation.
Cooling Ad Spend: Macroeconomic Caution Hits Sports Marketing
India’s broader advertising market is also showing restraint in 2025, with categories like FMCG, fintech, and edtech reducing sports budgets amid inflation and slower GDP growth. According to Elara Capital, digital ad growth in 2025 is expected to slow to 7.5% CAGR, down nearly 300 basis points from 2023 levels.
For IPL — whose media rights rely on advertisers’ confidence — this macroeconomic caution further impacted sponsorship deals and inventory pricing.
Franchise Profitability Under Pressure
Franchise-level economics are also cracking. Player wages have risen 12–15% on average since 2023, while sponsorship renewals have stagnated. Major teams such as Mumbai Indians (MI), Royal Challengers Bengaluru (RCB), and Lucknow SuperGiants (LSG) have reported double-digit revenue declines in FY25 despite strong attendance and fan bases.
With revenue-sharing tied to broadcast income, any dip in media value directly affects team margins. “Most franchises are now in a consolidation phase rather than expansion,” said an industry executive cited in the D&P report.
Audience Fatigue: Too Much Cricket, Too Little Scarcity
The IPL once thrived on novelty, but now it’s competing against its own success. Global cricket fatigue has set in — with overlapping leagues like SA20, ILT20, and The Hundred drawing players and audience attention. Viewership fragmentation across months and platforms is now visible in declining peak audience time and reduced per-match engagement.
Why IPL valuation dropped again in 2025- from Rs 92,500 cr to Rs 76,100 cr:
— Harsh Goenka (@hvgoenka) October 16, 2025
1. Disney Star–Viacom18 merger → single broadcaster (JioStar) → no bidding war, lower media-rights value.
2. Ban on fantasy & gaming ads under new Online Gaming Act → loss of key advertiser category.…
The Road Ahead: Stability Over Speed
Despite the valuation dip, analysts believe this is not the league’s decline — but a correction toward sustainable monetization. Experts from D&P Advisory predict stabilization in 2026, with potential rebounds if brand confidence returns and regulations around online gaming are eased.
The IPL’s fundamentals — immense brand loyalty, deep franchise networks, and India’s love for cricket — remain strong. Yet, its future growth depends on fresh content strategies, better global scheduling, and creative digital monetization beyond traditional ads.
Read this: IPL 2025 Winner RCB All Set for Sale at Record-Breaking Valuation of $2 Billion
Conclusion
The IPL’s decade-long run of relentless growth has met its first period of introspection. What Harsh Goenka aptly called the result of “consolidation, regulation, and fatigue” is also a signal to the sports industry: even the brightest brands must adapt to shifting markets and policies.
