Explainer: The Indian Premier League (IPL) has long been considered the ‘gold standard’ of sports business, a juggernaut that seems free of financial gravitas. However, the latest data brand finance And D&P Consultant Which has shocked the cricket world. The ecosystem value of the league has declined 20%fall from $12 billion in 2024 $9.6 billion In 2025.
While franchises spent money on stars like Cameron Green (Rs 25.2 crore) and record-breaking uncapped players in the 2026 auction, this ‘on-field’ spending hides a deeper structural ‘off-field’ improvement. Here’s why IPL’s brand value has declined despite huge money inflows.
geopolitical shocker
For the first time since the 2020 pandemic, the continuing IPL schedule was put on hold. The escalating India-Pakistan conflict following the Pahalgam attack forced the BCCI to suspend the league for an entire week in May 2025.
Logistical nightmares in northern venues like Dharamsala have led to matches being abandoned and migration. A week-long blackout during crucial playoff races severely affected broadcaster confidence and ‘fan-appointment’ viewing, directly impacting the league’s credibility as a stable commercial product.
Death of ‘bidding war’
Historically, the value of the IPL was driven by the fierce rivalry between broadcasters (Sony vs Star, then Star vs Viacom18).
JioStar monopoly: Disney Star and Viacom18 merger geostar has effectively ended the era of ‘auction fever’. With no major competitors to raise prices for the next rights cycle (after 2027), the valuation of media rights, the league’s primary revenue pillar, has fallen flat.
Lack of Competition: Without a third deep-pocketed bidder, the anticipated “growth” that previously drove the IPL’s multibillion-dollar tag has vanished, leading to what experts call a “business model reset”.
RMG Regulatory Hammer
Government’s strictness and subsequent restrictions Real-Money Gaming (RMG) Advertising has robbed the IPL of its most aggressive spenders.
Brands like Dream11 and My11Circle were once the lifeline of franchise kits and advertising slots. His exit has eliminated one guess Rs 1,500-2,000 crore annually from the ecosystem.
While sectors like FMCG and auto are growing, they have not been able to match the ‘irrational’ high-stakes spending of gaming platforms, leading to lower per-slot revenues for broadcasters.
‘Mega-auction’ uncertainty
The lead-up to the 2025 mega-auction has created a period of ‘brand instability’. When teams are forced to release 80% of their squads, ‘player-brand’ loyalty (for example, MS Dhoni with CSK or Rohit Sharma with MI) faces a temporary fracture.
The restructured teams in 2025 struggled for chemistry, which also led to a decline in on-field quality for old giants like KKR and SRH, whose brand values declined. 33% And 34% Respectively.
performance penalty
In a shrinking ecosystem, the market has become “cruel” towards the losers. Only Gujarat Titans The price saw an increase (+2%), proving that consistent on-field performance is now the only “insurance” against a falling market.
even rcbDespite eventually winning their first title in 2025, one saw 10% Decline in brand value. This paradox highlights that even a “cultural victory” cannot completely overcome the macro-economic pressures facing the league.
The IPL is currently in the ‘consolidation phase’. The record-breaking bids in the 2026 auction were not necessarily a sign of a rising market, but a desperate attempt by franchises to ‘buy relevance’ and secure their future in a more competitive, lean landscape. The league remains a powerhouse, but the days of “automatic development” are officially over.
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