Explainer: Why IPL Faces a Monetization Gap

The 19th season of the Indian Premier League (IPL) kicks off this weekend, with fans eagerly watching defending champions Royal Challengers Bengaluru, who won for the first time last year. Meanwhile, big investors like Temasek and Adar Poonawalla are competing to buy stakes in popular teams such as Rajasthan Royals and Royal Challengers.

Despite growing revenue from sponsorships and ads, the IPL is struggling to make enough money from media rights. This issue will become more pressing when a new media rights cycle starts in 2028. Experts say this gap between expected and actual earnings is causing problems for the league’s financial health.

Team sponsorships reached ₹1,033 crore in 2025, showing that teams are attracting big advertisers. However, money from broadcasting IPL matches isn’t coming in as hoped. Pay TV viewers have dropped since 2020, while streaming platforms, though growing, aren’t making as much per user.

The IPL’s media rights value is expected to stay at $5.4 billion for the next cycle, with revenue per match dropping by 13%. This is partly because free streaming options like JioCinema took viewers away from paid services. As a result, broadcasters are losing money despite higher streaming revenues.

Team valuations vary widely. Royal Challengers Bengaluru, known for its loyal fan base and star players like Virat Kohli, leads in popularity but struggles financially due to poor performance and lack of international presence. Rajasthan Royals, despite being popular, lags behind newer teams in social media engagement and TV reach.

Overall, the IPL faces challenges balancing revenue from ads, sponsorships, and broadcasting to ensure long-term financial stability.