The IPL is entering a new era of financial scale, franchise monetisation, and global investor interest. The latest trigger: Diageo’s strategic review of Royal Challengers Bengaluru (RCB), with the company preparing to sell the team at an eye-catching valuation of USD 2 billion (₹17,800 crore).
This puts RCB among the most expensive sports assets in India — but the financials behind the curtain tell a different story, especially when compared to Chennai Super Kings (CSK).
RCB’s Expected Valuation: USD 2 Billion (₹17,800 Crore)
Diageo has officially notified stock exchanges that it intends to divest RCB by March 31, 2026. The valuation target is extraordinary — USD 2 billion, a number previously associated with NFL or Premier League clubs.
But here is the key financial metric that matters for serious investors:
RCB EBITDA: ₹186 crore
Based purely on operating performance, the valuation multiple being sought is steep, even by global sports standards.
CSK: Higher EBITDA, Half the Valuation
On the other hand sits the most consistent franchise in IPL history — Chennai Super Kings, currently trading at:
Valuation: ₹7,600 crore (USD 853 million)
EBITDA: ₹252 crore
This means:
CSK’s EBITDA is 35% higher than RCB’s
CSK’s valuation is nearly 57% lower than RCB’s
In simple financial terms, CSK delivers more operating profit at half the price. For any investor focusing on cash-flow-based valuation instead of brand hype, the discount is impossible to ignore.
Why Is RCB Priced So High?
RCB has always been a glamour-heavy franchise:
– Massive digital following.
– Unmatched engagement.
– A fanbase that stayed loyal through 16 seasons without a title.
Winning the 2025 IPL championship further amplified its global brand presence. For Diageo, this brand power — not EBITDA — is the core driver behind the USD 2 billion expectation.
But brand value and business value are not the same.
And this is where the valuation gap becomes fascinating.
Why CSK Looks Undervalued
CSK represents everything long-term investors typically pay a premium for:
- Most consistent IPL performer
- Strong title-winning ability
- Stable leadership and culture
- Predictable annual cash flows
- Massive nationwide merchandise appeal
Yet its valuation stands far below RCB, despite CSK delivering higher operating profit, better earnings visibility, and greater financial stability.
From a pure financial perspective, CSK is the classic “value stock” — overshadowed only because a flashier peer is dominating the headlines.
A Deeper Look: What the Valuation Multiple Reveals
The valuation gap becomes even more striking when you break it down using EBITDA multiples.
RCB, with an EBITDA of ₹186 crore, is being valued at ₹17,800 crore — effectively pricing the franchise at an extraordinary 95× EBITDA. That is a multiple typically reserved for hyper-growth tech firms, not sports teams with relatively stable revenue structures.
Now apply the same benchmark to CSK:
- CSK EBITDA: ₹252 crore
- At 95×, CSK’s valuation would be: ₹23,940 crore
At this valuation, the implied share price approaches ₹630, signalling: a potential upside of nearly 3× from current levels.
This is not an aggressive assumption. It is simply the mathematical outcome of applying the same valuation logic the market appears to be giving RCB. When two franchises operate in the same league, under identical revenue-sharing frameworks, and the higher EBITDA franchise trades at half the valuation of the lower EBITDA one, the disconnect becomes too large to overlook.
Conclusion: A Tale of Two Franchises
The upcoming RCB sale will redefine how IPL franchises are priced, but it also highlights a major discrepancy.
If RCB is worth ₹17,800 crore, then CSK at ₹7,600 crore is nothing short of a discount buy, especially when CSK’s EBITDA outperforms RCB by 35%.
The IPL has moved beyond cricket — it has become a business school case study in valuation psychology.
RCB may dominate engagement metrics, but CSK continues to dominate financial fundamentals.