In an unprecedented move, American investors are pouring capital into Indian cricket, with two deals exceeding one billion dollars being finalized on the same day. The first, led by Kal Somani and Rob Walton, former chairman of Walmart, valued the Rajasthan Royals at $1.63 billion. Hours later, the reigning champion, Royal Challengers Bengaluru, was acquired for $1.78 billion by a consortium including David Blitzer of Bolt Ventures and Blackstone.

These deals reflect the increasing appeal of cricket in India, the most popular sport in the world's most populous country. Sourav Ganguly, a legend of Indian cricket, commented that these figures are astonishing and great news for the future of Indian cricket, comparing it to the NBA in terms of magnitude.

The increase in valuations is remarkable when compared to the original sales of the teams in 2008. In that year, Vijay Mallya acquired RCB for $111.6 million, while Rajasthan sold for $67 million. This increase underscores the global interest in sports teams as a way to access new markets and capitalize on the spending of their fans.

Deloitte analysts foresee a continuous expansion in the industry, with a significant increase in private equity deals in sports leagues in recent years.

The IPL, with its short Twenty20 format, has become the most coveted property in cricket. Broadcast rights for the 2023-27 cycle were sold for $6.4 billion to Disney Star and Reliance Viacom18, which later formed JioStar. David Blitzer described the IPL as one of the great growth stories in global sport.

The league's expansion in 2021, from eight to ten teams, also boosted valuations, with Gujarat Titans and Lucknow Super Giants selling for $670 million and $940 million, respectively.

Kumar Mangalam Birla, of the Aditya Birla Group, which is part of Blitzer's consortium, highlighted that the IPL has transformed Indian cricket, creating enormous value. The new ownership consortium of RCB aims to reform the team's management, with Aryaman Vikram Birla as chairman and Satyan Gajwani of the Times of India Group as vice chairman.

Blitzer already owns stakes in the NBA's 76ers, the NHL's Devils, and the Premier League's Crystal Palace. For Rajasthan, Somani, who was already a shareholder, seeks to take full control, subject to approval from the Board of Control for Cricket in India.

Although the current valuations of the IPL are still below those of top global sports franchises such as the NFL's Dallas Cowboys or soccer's Real Madrid, there is room to grow. Cricket made its entry into the US market with the 2024 T20 World Cup and will return to the Los Angeles 2028 Olympics.

Times Group, one of RCB's new co-owners, is already heavily invested in the US cricket market through Willow. Walmart, meanwhile, has significant interests in India, including a majority stake in Flipkart and control of PhonePe.