The commercial value of the Indian Premier League (IPL) has been rising rapidly, and now another major financial development has emerged amid the ongoing sale process of RCB. Sanjiv Goenka-led RP-SG Group is exploring the possibility of selling minority stake in its franchise Lucknow Super Giants.
Lucknow Super Giants (LSG) make their IPL debut in 2022 after RP-Sanjiv Goenka Group won a record-breaking bid of ₹7,090 crore. They made a great start, qualifying for the playoffs in their first season and in 2023, but have finished 7th in the last two seasons.
Sanjiv Goenka has planned a big step as soon as the talks for stake sale of Lucknow Super Giants begin.
After the team’s struggles in IPL 2025, Sanjiv Goenka has decided to take a big decision. According to a Moneycontrol report, RP-SG Group is considering selling up to 15 percent ownership in LSG. However, the final decision will depend on the valuation offered by investors, and if the offers are not attractive enough, Goenka may back out.
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The move comes at a time when many investors are showing keen interest in IPL franchises. Recently, Royal Challengers Bangalore and Rajasthan Royals have created a huge stir in the sports business market. A consortium comprising Aditya Birla Group and American sports investor David Blitzer has reportedly joined the race to buy a majority stake in Rajasthan Royals.
Big demand from RCB and Rajasthan Royals
The majority stake, currently held by entrepreneur Manoj Badale, is being discussed at a valuation of around $1 billion to $1.2 billion. At the same time, the possible sale of RCB by Diageo has attracted many powerful bidders. Interested names include Serum Group’s billionaire Adar Poonawalla, Manipal Group’s Ranjan Pai, Swedish private equity giant EQT and Avram Glazer-backed Lancer Capital for the defending champions.
The IPL has now become one of the most valuable sports leagues in the world, trailing only the National Football League in terms of overall value. Its media rights for the 2023-2027 cycle were sold for approximately $6.2 billion, highlighting the immense financial power of the IPL.
Strong revenues but heavy financial commitments for LSG
As per financial reports, RP-SG Group received around ₹399 crore from BCCI as franchise rights revenue in the first half of FY26, while it had received ₹458 crore in FY25. This payment by BCCI is the biggest source of revenue for most of the IPL teams.
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In the first half of FY26, the Lucknow franchise recorded total revenue of approximately ₹495.9 crore and made a profit of approximately ₹63.7 crore. During FY25, revenue fell nearly 20 per cent to ₹557 crore, mainly because fewer matches were played and the team finished lower on the points table in the 2024 season compared to 2023.
Annual franchise fee worries LSG
Their profitability also declined during that period. However, in the first half of FY26, revenues saw a marginal improvement of around 3 per cent compared to the same period in FY25. Despite strong revenue numbers, the franchise also has heavy financial obligations.
RP-SG Group will have to pay an annual franchise fee of approximately ₹709 crore till FY2031. For FY26, payments are expected to come from a mix of term loans, increased working capital facilities and internal funds from promoters.
“For FY26, the repayments are expected to be made from a mix of term loans, increase in working capital facilities, and internal generation/fund support from promoters. The company’s capital structure is leveraged with an overall gearing ratio of 16x as on March 31, 2025. Due to the higher franchise fee payable to BCCI, the total external debt as on March 31, 2025 is higher than the total net worth,” CareAge said. Liabilities are more than 41x higher.”
