Rajasthan Royals acquired by Kal Somani-led consortium for $1.63 billion

The Rajasthan Royals have been acquired by a consortium led by US-based entrepreneur Kal Somani in a deal valued at $1.63 billion, approximately Rs 15,000 crore. This acquisition marks a significant change in Indian Premier League franchise valuations just days before the 2026 season opener.

The deal was facilitated by the global investment bank Raine Group after weeks of bidding. Somani, a tech entrepreneur with expertise in sports data and artificial intelligence, was already a minority investor in the Royals. The new majority stake acquisition is supported by notable figures including Rob Walton of the Walmart family and the Hamp family, owners of the NFL's Detroit Lions. This is one of the largest private equity investments in Indian sports.

The bidding process intensified after the March 16 deadline. Media reports stated that the Somani-led consortium outbid an Indian multinational conglomerate partnered with American sports investor David Blitzer. The Royals' board, chaired by Manoj Badale, had earlier rejected a $1.7 billion offer from Columbia Pacific Capital Partners due to concerns over executability. The Somani bid met the franchise’s strategic and financial requirements.

This sale sets a new benchmark for IPL franchise valuations. Market analysts predicted that the Royal Challengers Bangalore franchise valuation will exceed $2 billion. Current RCB owners, Diageo through United Spirits, have set a March 31 deadline to conclude the transaction. As per reports, RCB’s strong brand presence and digital reach justify a premium of 15 to 20 percent over the Royals.

The competition for RCB has narrowed after initial interest from the Glazer family and Adar Poonawalla declined, according to Moneycontrol. Leading bidders include a consortium with Dr Ranjan Pai of Manipal Hospitals, US private equity firm KKR, and Singapore’s sovereign wealth fund Temasek. They face competition from Swedish private equity firm EQT partnered with Premji Invest, and an Indian conglomerate allied with David Blitzer and Blackstone, which re-entered the race after missing out on the Royals.

The ownership change for Rajasthan Royals will take effect after the 2026 IPL season. Meanwhile, the Royals are preparing for their season opener against Chennai Super Kings in Guwahati on March 30. The team is focused on the field under new captain Riyan Parag and head coach Kumar Sangakkara.

This acquisition marks a new chapter for Rajasthan Royals and highlights the increasing financial scale of IPL franchise ownership ahead of the upcoming season.