There’s a new sport with billion-dollar team valuations: cricket.
Indian Premier League clubs have seen an annualized growth rate of 24% in just over a decade, according to Forbes. That’s more than both the NBA and NFL, which have seen 16% and 10% growth rates, respectively.
- Of the league’s 10 teams, the Mumbai Indians have the highest valuation at $1.3 billion.
- Seven teams are worth at least $1 billion.
- The lowest valuation, the Gujarat Titans, are still worth $850 million.
Forbes attributes the high numbers to explosive viewership in India, as well as a business model that yields high revenues and low costs.
The current media rights deal with Star India, part of Walt Disney, is worth around $2.4 billion each year. But the next deal could be worth more than twice that number.
Private Equity Interest
The highly valued teams have caught the eye of private equity firms investing in other areas of the sports world.
Last year, RedBird Capital purchased a 16% stake in the Rajasthan Royals. And last October, CVC Capital Partners put in a bid, too. It currently owns the Titans, for which it reportedly paid about $750 million.