In a development that could set a new benchmark for Indian Premier League (IPL) franchise valuations, the Mehta Group—currently holding approximately 45% stake in Kolkata Knight Riders (KKR)—is reportedly exploring a divestment of its shareholding. Shah Rukh Khan, who already owns 55% through his Red Chillies Entertainment, is positioned to potentially increase his ownership, consolidating control over one of the IPL’s most successful franchises.
This transaction, still in preliminary stages, represents more than just an internal ownership shuffle. It signals a broader transformation in how marquee IPL teams are valued in the unlisted market, with potential ripple effects across the league’s ownership landscape.
According to industry sources, the proposed KKR transaction is expected to launch in late January or early February 2026. The exact quantum of the minority stake and targeted valuation have not been publicly disclosed, though deal contours may evolve based on investor demand.
Nomura’s appointment as sell-side advisor suggests a structured, institutional process likely to attract both financial investors (PE funds, family offices) and strategic buyers (sports conglomerates, media companies).
Knight Riders Sports Private Ltd, established in 2008, was conceived as a joint venture between Bollywood superstar Shah Rukh Khan’s Red Chillies Entertainment (55% stake) and the Mehta Group (45% stake), backed by actress Juhi Chawla and industrialist Jay Mehta. The trio initially acquired the franchise for approximately $75 million in the inaugural IPL auction—an investment that has appreciated exponentially over the past 17 years. Moneycontrol
According to industry sources, unlike Royal Challengers Bengaluru (RCB) and Rajasthan Royals (RR)—both exploring majority stake sales—only the Mehta Group plans to offload a minority stake to unlock value. Investment bank Nomura has reportedly been mandated as the sell-side advisor, with the transaction expected to launch by late January or early February 2026.
KKR’s competitive pedigree makes this transaction particularly significant. The franchise is one of only three teams (alongside Mumbai Indians and Chennai Super Kings) to win multiple IPL titles, claiming championship victories in 2012, 2014, and most recently in 2024. The team also holds runner-up trophies from the 2014 Champions League T20 and IPL 2021. The Week
Beyond the cricket field, Knight Riders Sports has built a global sports empire, with ownership of:
This international expansion strategy adds another dimension to KKR’s valuation proposition, positioning it not merely as an IPL franchise but as a global cricket brand.
According to the “IPL Valuation Study 2025” by Houlihan Lokey, the overall IPL business value has surged to $18.5 billion from $15.4 billion in 2023, while the IPL brand value climbed to $3.9 billion from $3.2 billion. Within this ecosystem, KKR holds a brand value of $227 million, ranking fourth behind Royal Challengers Bengaluru ($269 million), Mumbai Indians ($242 million), and Chennai Super Kings ($235 million). SportsPro
However, recent brand valuation reports paint a more nuanced picture. According to Brand Finance’s 2025 analysis, Mumbai Indians leads as the most valuable IPL franchise at $108 million in brand value, followed by RCB at $105 million, CSK at $93 million, and KKR at $73 million. NDTV Profit
It’s worth noting that overall IPL ecosystem value declined 20% in 2025 due to regional tensions and economic factors—from $12.0 billion in 2024 to $9.6 billion—which adds complexity to current valuation discussions.
KKR’s potential ownership restructuring is part of a larger wave of IPL franchise dealmaking:
United Spirits Ltd (Diageo’s Indian arm) initiated a strategic review of its investment in RCB in November 2025, with completion expected by March 31, 2026. Reports suggest Diageo is seeking a valuation around $2 billion, with Adar Poonawalla of Serum Institute emerging as a frontrunner among potential buyers. Moneycontrol
Manoj Badale’s Emerging Media Ventures (holding approximately 65% stake) kicked off a process in December 2025 to offer a controlling stake, targeting a valuation exceeding $1 billion. Minority investors include RedBird Capital Partners (~15% stake) and Lachlan Murdoch.
These concurrent transactions underscore a new phase of consolidation and churn in IPL ownership, with established franchises attracting institutional capital and strategic investors seeking entry into India’s most lucrative sports property.
Chennai Super Kings (CSK), trading in the unlisted market, provides a fascinating benchmark for understanding how ownership moves at KKR could influence peer valuations. In the unlisted market, CSK shares have surged from ₹31 in 2019 to ₹190-200 currently—a remarkable 529% (6x) return ( Source: UnlistedZone )
In the unlisted market, CSK trades at approximately ₹200 per share with a market capitalization around ₹7800 crores , though some analysts believe this undervalues the franchise compared to recent comparable transactions.
If the KKR transaction proceeds at a premium valuation—potentially reflecting its three championships, global expansion, and Shah Rukh Khan’s brand equity—it could catalyze a repricing of CSK and other unlisted IPL franchises. Owners and investors closely monitor these deals as they establish new valuation floors and ceilings across the ecosystem.
The Houlihan Lokey study articulates why IPL franchises represent “a near-perfect blend of predictable cash flows and cost discipline”:
Top franchises generate ₹6,500-7,000 million in annual revenues, with up to 80% visibility secured before the tournament starts. This stems from:
The IPL’s ₹1,200 million salary cap functions as an embedded margin protector, preventing wage inflation—a chronic problem in global sports leagues like the English Premier League and NBA. This ensures competitive parity while protecting profit margins.
Unlike EPL or NBA franchises that wrestle with stadium debt and high operating costs, IPL teams benefit from ready access to stadium infrastructure created by BCCI. This translates into structurally high returns on employed capital with minimal fixed-asset exposure.
The study notes: “For institutional investors, this makes the IPL not just a sports league but a high-growth compounder in the entertainment space, catering to a fast-growing fan base with rising disposable income and a strong appetite for premium digital experiences.”
KKR’s aggressive strategy in the recent IPL 2026 auction signals continued ambition:
These marquee signings reflect confidence in KKR’s competitive trajectory and willingness to deploy capital for sustained success—factors that enhance franchise valuation.
This ownership activity isn’t isolated to cricket. Indian sports properties across disciplines are witnessing heightened investor interest:
The IPL remains the crown jewel, but the playbook established here—institutional capital, celebrity ownership, global expansion—is being replicated across India’s sports ecosystem.
The potential divestment by the Mehta Group and Shah Rukh Khan’s stake consolidation represents more than a routine corporate transaction. It marks a maturation of the IPL ecosystem—from startup-phase franchise ownership to sophisticated asset management requiring professional advisory, strategic positioning, and institutional-grade documentation.
For an investment that began at $75 million in 2008, the current valuation trajectory toward potentially $1 billion+ for top franchises validates the IPL as India’s most successful sports-business model.
As KKR, RCB, and RR simultaneously explore ownership changes, the league enters a new era where franchise valuations increasingly reflect not just on-field success but global brand potential, digital engagement, and financial engineering sophistication.
The next few months will reveal whether this transaction proceeds and at what valuation—but the mere fact of its exploration signals that IPL franchise ownership has firmly entered the big leagues of global sports investment. For marquee teams like CSK trading in unlisted markets, the KKR precedent could unlock significant value appreciation, making this a development worth tracking not just for cricket enthusiasts but for anyone interested in India’s sports economy and entertainment industry convergence.
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