The Indian Premier League (IPL), once considered a mere cricketing spectacle, has now evolved into one of the most lucrative sports leagues globally. With recent news of Diageo exploring a potential $2 billion sale of Royal Challengers Bengaluru (RCB), the spotlight is again on the astronomical valuations of IPL franchises. But while this may grab headlines, it opens up a deeper conversation for savvy investors—particularly those active in the unlisted markets—on why Chennai Super Kings (CSK) may be severely undervalued.
2008–2015: The Foundation Years
IPL was launched in 2008 by the BCCI with a vision to combine sports with entertainment and commercial monetisation.
Team auctions brought in big industrialists and celebrities (e.g., Mukesh Ambani, Shah Rukh Khan, Vijay Mallya), and player auctions became a spectacle.
Media rights were initially sold to Sony for ₹8,200 crore (2008–2017), which laid the groundwork for IPL’s commercial success.
2016–2017: Transitional Phase
Two-year suspension of CSK and RR over conflict of interest led to temporary teams like Gujarat Lions and Rising Pune Supergiant.
This phase tested IPL’s brand strength—yet surprisingly, the league continued to thrive, proving its long-term commercial appeal.
2018–2022: The Star Era Begins
Star India bought IPL broadcasting rights for ₹16,348 crore for 5 years (₹3,270 crore per year).
This deal nearly doubled IPL’s per-match media value, solidifying its place as a global sporting brand.
Franchise valuations started shooting up—CSK, MI, and KKR began commanding significant market interest, including in the unlisted space.
2023–2027: The Digital Gold Rush
IPL rights were auctioned again and this time split between digital and TV.
Disney Star (TV) and Viacom18 (Digital) acquired rights for a combined ₹48,390 crore, valuing each match at ₹118 crore—second only to the NFL globally.
This immense monetisation opportunity made IPL franchises akin to mini unicorns, attracting investors, PE firms, and global corporates.
IPL franchises have 4 primary revenue streams:
Central Media Pool: BCCI shares 50% of broadcasting revenue with the teams.
Sponsorships: Brands pay hefty sums to become jersey/title sponsors.
Ticket Sales: Direct revenue during home games.
Merchandise & Licensing: Growing every year with fanbase expansion.
This robust model ensures stable cash flows, making franchise ownership a high-ROI asset. RCB, despite never having won a title until 2025, commands a $2 billion valuation today, showing how strong fan engagement and monetisation can offset on-field performance.
As of June 2025, CSK’s unlisted share price at UnlistedZone reflects a market cap of around ₹7500 crore (approx. $1 billion). Compared to RCB’s $2 billion headline valuation, this seems starkly undervalued, especially considering:
CSK has won 5 IPL titles (tied with MI for most titles).
Consistently profitable: Among few IPL teams to report regular profitability.
Brand Loyalty: Led by MS Dhoni, CSK has a cult following across age groups and geographies.
Stable management: Owned by India Cements, CSK's structure is more mature compared to recently restructured teams.
Likely IPO candidate: CSK has strong financials and regulatory readiness for listing, which would lead to immediate value unlocking.
| Particulars | CSK (Unlisted) | RCB (RCB Stake News) |
|---|---|---|
| Estimated Valuation | ₹7500 crore (<$1B) | $2 billion |
| IPL Titles | 5 | 1 |
| Profitability | Profitable | Not Consistently Profitable |
| Fan Following | Pan-India + Global (Dhoni) | High (Virat Kohli-led) |
| IPO Potential | Very High | Unclear |
Conclusion: CSK offers a better financial and brand profile at half the price. This makes it a compelling long-term investment in the unlisted space.
The sale buzz around RCB is not isolated. Global investors, hedge funds, and family offices are increasingly tracking IPL franchises. For example:
CVC Capital invested in Gujarat Titans (new team).
RedBird Capital owns a stake in Rajasthan Royals.
PE firms from the US and UK are exploring franchise-level private investments.
This tells us one thing—IPL is no longer just a cricket league; it’s a serious global business asset class.
As India’s leading pre-IPO investment platform, we believe CSK represents a unique value opportunity. While RCB’s potential stake sale rightly grabs attention, CSK’s fundamentals, championship history, and media monetisation edge make it a better investment bet at current valuations.
👉 For investors interested in participating in such high-growth sports assets, CSK shares are available on UnlistedZone.
📞 Reach out to us to know:
Latest price trends
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Exit options before potential IPO
IPL’s valuation boom is real and sustainable.
Media rights, digital viewership, and global investor participation are fuelling this momentum.
RCB’s $2 billion tag should prompt investors to re-evaluate CSK’s position in their unlisted portfolio.
At UnlistedZone, we help you stay ahead in capturing such hidden value stories before they hit the mainstream market.
