IPL Franchises Report Declines in Earnings, MI and RCB Suffer Losses

Three Indian Premier League (IPL) teams - Mumbai Indians, Royal Challengers Bengaluru, and Lucknow SuperGiants - reported revenue declines in FY25. Mumbai Indians posted a profit of ₹84 crore, down from ₹109 crore in the previous year, while Royal Challengers Bengaluru reported revenue of ₹514 crore, down from ₹649 crore. Lucknow SuperGiants reported a turnover of ₹557 crore in FY25 and a net loss of ₹72 crore. The owners of RCB posted a profit of ₹140 crore, compared with ₹222 crore in the previous fiscal.

Three Indian Premier League (IPL) teams—Mumbai Indians, Royal Challengers Bengaluru, and Lucknow SuperGiants—reported revenue declines in FY25, impacting their financial performance. Mumbai Indians, owned by Reliance Industries-controlled Indiawin Sports, posted a profit of ₹84 crore, down from ₹109 crore in the previous year, with revenue declining to ₹697 crore from ₹737 crore [1].

Royal Challengers Bengaluru, owned by Diageo, reported revenue of ₹514 crore in FY25, down from ₹649 crore in FY24. The company attributed the decline mainly to the lower number of IPL matches played by the team [2]. The owners of RCB posted a profit of ₹140 crore, compared with ₹222 crore in the previous fiscal, due to fewer men's IPL matches. During the year, the company declared and paid an interim dividend of ₹120 crore [2].

Lucknow SuperGiants reported a turnover of ₹557 crore in FY25 and a net loss of ₹72 crore. The company is obligated to pay ₹709 crore annually as franchise fees until 2031 [2]. Despite a strong fan base and sponsorships, LSG faced losses due to the financial dynamics of the IPL.

The Board of Control for Cricket in India (BCCI) earned significantly from the IPL, distributing a portion to the teams. According to the BCCI's FY24 annual report, it paid ₹4,578 crore to IPL teams for 2024 and earned ₹11,703 crore from the tournament, including ₹8,744 crore from media rights, ₹2,163 crore from franchise fees, and ₹758 crore from sponsorship [2].

The original eight IPL teams, excluding LSG and Gujarat Titans, pay 20% of their income from net central rights, sponsorship, and ticketing revenues to the BCCI as fees [2]. "LSG has developed a strong fan base and enjoys healthy ticket revenues. It has also garnered attractive sponsorships. These, coupled with revenues from broadcast rights augur well for the business," said RPSG Ventures chairman Sanjiv Goenka [2].

References:
[1] https://www.justdial.com/JdSocial/news/Industry-and-Economy-generic/IPL-franchises-MI-RCB-LSG-earnings-take-a-hit/1755458556598383
[2] https://economictimes.indiatimes.com/industry/media/entertainment/media/ipl-franchises-mi-rcb-lsg-earnings-take-a-hit/articleshow/123350917.cms