RedBird Capital Considers Selling Stake in Rajasthan Royals

RedBird Capital Partners is exploring the possibility of selling a minority stake in Indian Premier League (IPL) team Rajasthan Royals. According to Bloomberg, the private equity firm is looking to capitalize on the growing popularity of cricket’s most profitable league.

RedBird, founded by former Goldman Sachs executive Gerry Cardinale, acquired a 15% stake in Rajasthan Royals four years ago for $37.5 million, valuing the franchise at $250 million at the time. Sources familiar with the matter suggest the firm aims to at least double its investment through a sale. However, there is also a possibility that RedBird might retain part of its stake.

The IPL, which began in 2008, has evolved into cricket’s most lucrative league. Investment bank Houlihan Lokey valued the league at $16.4 billion last year. Interest in cricket team ownership continues to rise, with a recent auction for The Hundred tournament in England pricing its eight teams at $1.2 billion. IPL franchise owners and private equity firms were among the bidders.

Many IPL teams have expanded into international markets, and Rajasthan Royals is no exception. The franchise operates under the Royals brand in the Caribbean as Barbados Royals and in South Africa as Paarl Royals. With strong revenues from sponsorships, ticket sales, and media rights, IPL teams have managed to attract global cricket talent with lucrative contracts.

Emerging Media Ventures Ltd., led by venture capital firm Blenheim Chalcot and managed by Manoj Badale, holds the majority stake in Rajasthan Royals. Lachlan Murdoch, CEO of Fox Corp., also owns a small share in the team.

Beyond cricket, RedBird has a strong presence in global sports. The firm holds a minority stake in Fenway Sports Group, which owns the Boston Red Sox and Liverpool Football Club. RedBird also owns AC Milan and supports Formula One team Alpine.