Ipl: IPL 2023: A global phenomenon attracting massive US investment

It’s time for IPL 2023- and cricket fever has hit India!
This cricket league is not just popular in India- it is truly a global phenomenon. In fact, it’s attracted massive attention from US investors- a country where cricket does not exist on such a large scale.

Why is the IPL attracting American investors?

Indian Premier League 2023 is a professional Twenty20 cricket league in India that has become a global phenomenon. The IPL has attracted massive attention from US investors who are pouring money into the league, making it one of the most lucrative investments in sports.

According to a report by the Financial Times, the IPL has attracted over $3.2 billion in investment from US firms, including Silver Lake Partners, KKR & Co., and TPG Capital. In 2021, Silver Lake Partners invested $1.35 billion in the IPL's parent company, the Board of Control for Cricket in India (BCCI), making it the largest investment in the league's history.
The interest of US investors in the IPL can be attributed to the league's massive popularity and potential for growth. And IPL is not just a popular sporting event….it is also a significant contributor to India’s economy.

IPL franchise attracts foreign investors: How the IPL is attracting American investors #ipl2023

For instance, in 2019, IPL attracted 4L domestic and international tourist arrivals in India- which resulted in a revenue of nearly 68 MILLION USD to India’s hospitality sector.
IPL has created over 1,20,000 direct and indirect job opportunities in the country. The advertising revenue generated by the IPL has grown steadily over the years. The total advertising revenue for IPL 2020 was estimated to be around INR 3,000 crore (around $410 million USD), a 10% increase from the previous year (According to a report by Duff & Phelps).
Additionally, The IPL has created a market for merchandise related to the league, resulting in increased revenue for small businesses. In 2019, the sale of IPL merchandise was estimated to be around INR 500 crore (around $68 million USD).
Last but not least, the construction of several world-class stadiums and training facilities for the IPL has resulted in the development of sports infrastructure in India. According to a report by Deloitte, the construction of IPL stadiums and training facilities has contributed significantly to the growth of the Indian sports industry.
These statistics demonstrate the significant impact of the IPL on India's economy, making it not just a popular sporting event but also a crucial contributor to the country's economic growth.
With this being said, the IPL has an estimated global audience of 462 million viewers, making it one of the most-watched sporting events in the world. This beats the United States’ Super Bowl fir American football- considered one of the most viewed sporting events on the globe. In 2022, the Super Bowl had 99.18 million viewers in the United States and advertising revenue reached approximately 500 MILLION USD.
Coming back to IPL.
In 2020, before COVID19, IPL’s brand value was estimated at $6.8 billion, with a total revenue of $530 million. The league's popularity and massive fanbase are expected to drive further revenue growth in the coming years, making it an attractive investment opportunity.
This is for sure why America is so interested in cricket, even though cricket may not be such a big sport in the USA. The IPL’s innovative approach, including technology, strategic timeouts and trading of players from all over the globe has resulted in creating a truly international audience which increases revenue and investment opportunities.
We’re talking big money here.
In 2021, Chris Morris, an all-rounder from South Africa became one of the most expensive player in IPL history when he was bought by Rajasthan Royals for INR 16.25 crore (approximately $2.25 million USD) at the player auction.
India’s Virat Kohli was retained by Royal Challengers Bangalore for INR 17 crore (approximately $2.3 million USD) in multiple seasons, making him one of the highest-paid players in the league.
Australian fast bowler Pat Cummins became one of the most expensive foreign player in IPL history when he was bought by Kolkata Knight Riders for INR 15.5 crore (approximately $2.1 million USD) in 2020.
These are just a few examples of the most expensive players in the IPL, and the list is constantly evolving as new players emerge and old ones retire or move on to different teams. And just last year, IPL had two new franchises, taking the team total from 8 to 10 teams, meaning more players and more money.
Enter American investors.
In addition to the investments made by US firms, several prominent American businessmen have also shown their interest in the IPL. Amazon founder Jeff Bezos, Facebook CEO Mark Zuckerberg, and hedge fund manager Steve Cohen have all reportedly expressed their personal desire to invest in the league.
With the league set to become even bigger in the coming years, it is no surprise that US investors are and will be betting bigger and higher on the IPL.