The Indian Premier League (IPL) continues to dominate as one of the world’s most valuable sports properties, but recent financial disclosures highlight the growing pressures facing franchises. For the 2024–25 fiscal year, Mumbai Indians, Royal Challengers Bengaluru, and Lucknow SuperGiants all reported weaker earnings, underlining the challenges of balancing escalating costs with tournament revenues.
Mumbai Indians See Profits Narrow
The five-time champions Mumbai Indians, owned by Indiawin Sports (a Reliance Industries subsidiary), posted a profit of ₹84 crore, down from ₹109 crore the previous year. Total revenue fell to ₹697 crore from ₹737 crore, reflecting tighter margins despite continued brand strength and a robust sponsorship portfolio.
RCB Revenues Fall, Owners’ Profit Declines
Royal Challengers Bengaluru, owned by Diageo, reported revenue of ₹514 crore in FY25, a sharp drop from ₹649 crore in FY24. The franchise attributed the decline to a reduced number of matches played.
The team’s owners also felt the impact, with profits dropping to ₹140 crore from ₹222 crore in the previous fiscal year. However, they maintained shareholder returns, declaring and paying an interim dividend of ₹120 crore.
Lucknow SuperGiants Record a Net Loss
For Lucknow SuperGiants (LSG), the numbers were more challenging. The franchise reported turnover of ₹557 crorebut a net loss of ₹72 crore.
A key factor is the heavy annual franchise fee obligation of ₹709 crore, payable until 2031. Despite strong sponsorship deals and ticketing revenues, the financial weight of franchise fees has outpaced operational earnings. Chairman Sanjiv Goenka of RPSG Ventures, LSG’s parent company, noted that the franchise’s growing fan base and sponsorship pipeline position it well for long-term success, though near-term losses are likely.
BCCI’s Role and Central Revenues
The Board of Control for Cricket in India (BCCI) continues to generate immense revenues from the IPL. In FY24, the board earned ₹11,703 crore from the tournament, including:
- ₹8,744 crore from media rights
- ₹2,163 crore from franchise fees
- ₹758 crore from sponsorships
From these revenues, the BCCI distributed ₹4,578 crore to IPL teams.
The original eight franchises (excluding Gujarat Titans and Lucknow SuperGiants) pay 20% of their income from central rights, sponsorships, and ticketing back to the BCCI as part of their fee structure.
The Bigger Picture
The financial performance of IPL teams reveals the delicate balance between rising franchise costs, sponsorship-driven revenues, and long-term sustainability. While Mumbai Indians and RCB continue to generate profits, albeit reduced, newer franchises like Lucknow SuperGiants are grappling with high entry costs despite strong commercial traction.
For the IPL ecosystem, these results highlight both the strength of the league’s revenue model and the pressures of escalating franchise obligations, a dynamic that could shape the competitive and financial strategies of teams in the seasons ahead.
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