The Indian Premier League (IPL) cricket media rights landscape is about to undergo a significant shift, according to a recent report by Media Partners Asia (MPA). The report, titled "The IPL: Teams, Rights & Valuations," predicts a plateau in the next rights cycle, with a potential decline in per-match value despite an expanded match format.
This development marks a turning point in the IPL's two-decade journey, which has witnessed exponential growth in media rights values. The current cycle, from 2023 to 2027, is valued at $5.4 billion, but the next cycle is projected to maintain this figure, resulting in a 13% decrease on a per-match basis.
One of the key factors contributing to this plateau is the expanded 94-match format, which adds volume without a corresponding increase in value. Additionally, the merger of Viacom18 and Disney's Indian operations, resulting in the creation of JioHotstar, has eliminated the competitive tension that drove the near-threefold increase in rights values during the previous auction.
The report also highlights the cumulative losses faced by rights holders in the current cycle, estimated at $1.8 to $2 billion. Advertising revenue growth has slowed, and policy changes and bans on certain types of advertising have narrowed the advertiser base.
At the franchise level, media rights now account for a significant portion of total revenues, with EBITDA margins expanding from an average of 10% in the league's first cycle to 34% currently. However, MPA warns that this operating leverage also amplifies downside risk when rights values correct.
Mihir Shah, Vice President of India at MPA, emphasizes the need for franchise value creation to focus on building the non-media revenue base, including sponsorship, international presence, and digital monetization. He cautions that the window for pricing franchises on current EBITDA multiples may be shorter than expected, given the rights cycle headwind and concentration risk.
MPA's franchise scorecard ranks Mumbai Indians at the top, followed by Chennai Super Kings. Royal Challengers Bengaluru, despite a substantial social media following, ranks lower due to a lack of international presence and dependence on a single star.
On the digital front, JioHotstar's recent success during the ICC T20 World Cup finals highlights the potential for viewership records in the 2026 IPL season. However, the report cautions that audience scale has not yet translated into the monetization needed to support current rights pricing.
The report provides a comprehensive analysis of the IPL's media rights history and forward projections, offering valuable insights into the league's economic landscape. As the IPL enters a new phase, it will be interesting to see how franchises adapt their strategies to navigate the changing media rights environment.
