Sanjiv Goenka-led RPSG Group is reportedly exploring the sale of a 15–20% minority stake in Lucknow Super Giants (LSG), as rapidly rising Indian Premier League franchise valuations create an opportunity to monetise part of its investment. According to people familiar with the matter cited by Mint, RPSG is seeking a valuation of $1.5 billion to $2 billion for the Lucknow franchise.
At that valuation, a 15–20% stake could be worth approximately $225 million to $400 million. The potential transaction is still under consideration, however, and RPSG has not publicly confirmed that a deal will take place. The group has reportedly started the process of appointing an investment banker, with Goldman Sachs emerging as a frontrunner, although the final adviser has not been decided.
Key takeaways
- RPSG Group is reportedly considering selling 15–20% of Lucknow Super Giants.
- The group is seeking an LSG valuation of approximately $1.5 billion–$2 billion.
- That would value the potential stake at roughly $225 million–$400 million.
- RPSG acquired the Lucknow IPL franchise for ₹7,090 crore ($800 million) in November 2021.
- Goldman Sachs is reportedly the frontrunner to advise on the potential transaction, but no final appointment has been made.
- RPSG would retain control if it sold only a minority stake.
- The possible transaction comes as IPL franchise valuations have risen sharply, with RCB and Rajasthan Royals also involved in major ownership transactions this year.
- LSG generated ₹495.9 crore revenue and ₹63.7 crore profit in H1 FY26, according to CareEdge data reported by Moneycontrol.
RPSG weighs minority stake sale
The potential stake sale represents a significant change from RPSG’s original approach to LSG, when the group acquired the franchise with a long-term objective of building a valuable sports asset.
The latest proposal would allow the group to unlock part of that value without giving up control of the team.
Mint reported that RPSG is exploring the sale of 15–20% of LSG and is seeking a valuation between $1.5 billion and $2 billion. The process of appointing a banker has begun, with Goldman Sachs reportedly emerging as the frontrunner. However, the bank’s appointment has not been finalised and RPSG has not publicly confirmed the transaction.
Business Today and Moneycontrol separately reported the proposed stake sale, with Moneycontrol’s earlier March report putting the potential divestment at up to 15%. The expansion of the reported range to 15–20% in October suggests the proposal remains subject to negotiations and valuation discussions rather than being a completed transaction.
How much could the stake be worth?
RPSG is reportedly targeting a valuation of $1.5 billion to $2 billion for LSG.
The implied value of a minority stake can be calculated relatively simply:
| LSG valuation | 15% stake | 20% stake |
|---|---|---|
| $1.5 billion | $225 million | $300 million |
| $2.0 billion | $300 million | $400 million |
Therefore, depending on the final valuation and stake sold, RPSG could potentially raise between $225 million and $400 million before considering transaction-specific adjustments.
These are implied values, not a confirmed sale price.
A final transaction could be priced differently depending on the rights attached to the minority holding, governance arrangements, liquidity provisions and negotiations between RPSG and potential investors.
RPSG paid ₹7,090 crore for LSG
RPSG acquired the Lucknow IPL franchise for ₹7,090 crore, equivalent to about $800 million at the time, in November 2021.
The acquisition was part of the IPL’s expansion to 10 teams and made LSG one of the league’s newest franchises.
The team began playing in the 2022 season and reached the playoffs in its first two seasons, in 2022 and 2023. LSG’s official website identifies RPSG Group as the team’s owner and Sanjiv Goenka as its principal owner.
The franchise is held through RPSG Sports Pvt Ltd. According to the reports, RPSG Ventures owns 51% of RPSG Sports, while Kolkata-based Rainbow Investments holds the remaining 49%.
This structure means that a sale of an economic interest in the franchise would need to be evaluated alongside the existing ownership structure rather than simply being treated as a direct sale of RPSG Ventures’ 51% holding.
The potential transaction comes after a major rise in IPL valuations
The timing of the proposed LSG stake sale is important.
IPL franchise valuations have increased substantially as investors have begun viewing teams as long-term sports and entertainment assets rather than simply cricket businesses.
US investment bank Houlihan Lokey estimated that the business value of the 10-team IPL increased more than 11% in 2026 to approximately $20.6 billion.
That increase creates an attractive environment for existing owners.
Rather than selling an entire franchise, an owner can sell a minority stake, bring in a financial or strategic investor and monetise part of the value created since the original acquisition.
The owner can simultaneously retain control and continue participating in any future appreciation.
That is effectively the opportunity RPSG appears to be evaluating.
RCB and Rajasthan Royals set new benchmarks
Two other major IPL ownership transactions have helped establish the current valuation environment.
Royal Challengers Bengaluru was sold in March 2026 at a reported valuation of $1.78 billion to a consortium that included Bolt Ventures, Blackstone, the Times of India Group and Kumar Mangalam Birla’s Aditya Birla Group.
Rajasthan Royals also changed hands at a reported $1.63 billion valuation. Lakshmi Mittal acquired a 75% stake, while Adar Poonawalla acquired 18%, with the remaining interest retained by former principal owner Manoj Badale.
These transactions provide useful market reference points for LSG.
RPSG’s reported $1.5 billion–$2 billion target would place LSG broadly within the valuation range established by those transactions, although franchise values are not directly comparable because ownership percentages, commercial rights, financial performance and deal structures differ.
LSG’s valuation is now potentially well above its acquisition cost
RPSG paid approximately $800 million for the Lucknow franchise in 2021.
The current target valuation of $1.5 billion–$2 billion would therefore represent a substantial increase in the implied value of the franchise.
| Metric | 2021 acquisition | Current reported target |
|---|---|---|
| LSG valuation | ~$800 million | ~$1.5–2.0 billion |
| Approximate increase | — | ~87.5%–150% |
| Potential stake under consideration | — | 15–20% |
| Potential stake value | — | ~$225–400 million |
The comparison is indicative rather than a realised return calculation because the original acquisition involved specific transaction terms, financing costs and subsequent operating expenses.
Nevertheless, the difference illustrates why minority monetisation has become attractive for IPL franchise owners.
LSG is generating meaningful operating revenue
The value of an IPL team is not based only on its brand or sporting performance.
Franchises generate revenue through BCCI distributions and rights, sponsorships, ticketing, merchandise and other commercial activities.
According to CareEdge data reported by Moneycontrol, LSG generated ₹495.9 crore of revenue and ₹63.7 crore of profit in H1 FY26.
The franchise received ₹399 crore from the BCCI as franchise rights revenue during that six-month period. For FY25, the corresponding BCCI rights revenue was ₹458 crore.
The financial performance also shows why sporting performance matters.
Moneycontrol reported that LSG’s FY25 revenue declined about 20% to ₹557 crore, with fewer matches and the team’s lower ranking in the 2024 IPL season contributing to the moderation.
The business therefore combines characteristics of both a media asset and a sports franchise.
More matches, stronger performances and greater fan engagement can support commercial revenue, while league-wide media and sponsorship economics provide an important underlying revenue base.
The BCCI rights payment is a major revenue source
The annual franchise-rights payment from the BCCI is particularly important for the economics of an IPL team.
CareEdge data cited by Moneycontrol showed that LSG received ₹399 crore in franchise-rights revenue during H1 FY26, compared with ₹458 crore for the full FY25.
At the same time, the franchise has a substantial annual financial obligation.
Outlook Business reported that LSG’s owners are required to pay an annual franchise fee of ₹709 crore to the BCCI through 2031.
This highlights an important aspect of IPL franchise economics.
Headline valuation cannot be viewed independently of the long-term obligations attached to owning a team. Investors assessing a minority stake would need to consider future BCCI payments, commercial income, operating costs, player-related expenses and the potential for future franchise-value appreciation.
Why sell only 15–20%?
A minority transaction could provide RPSG with capital while allowing it to maintain control over LSG.
That can be attractive for several reasons.
First, RPSG can monetise part of the appreciation in the franchise since 2021 without exiting the asset.
Second, bringing in an institutional or strategic investor can potentially strengthen the franchise’s financial and commercial ecosystem.
Third, retaining a majority position means RPSG can continue benefiting if IPL franchise values rise further.
The strategy is similar to what happens in other sports leagues globally, where franchise owners occasionally sell minority interests to financial investors, celebrities, family offices or strategic partners.
For investors, the attraction is exposure to a scarce sports asset without having to acquire control of the franchise.
The investor opportunity is changing
The IPL has increasingly become more than a cricket competition.
Its value comes from a combination of broadcast rights, sponsorship, advertising, digital engagement, ticket sales, merchandise and the scarcity of franchise ownership.
There are only 10 IPL teams at present.
That limited supply matters because investors cannot simply create another IPL franchise whenever demand for the asset increases.
The league’s commercial scale has also created an ecosystem around the teams.
Franchises can build digital communities, sell merchandise, attract sponsors and develop international brand extensions.
RPSG itself has built a broader sports portfolio that includes LSG, South Africa’s Durban’s Super Giants and Mohun Bagan Super Giant. The group’s official website describes RPSG Sports as the group’s sports arm and identifies LSG among its current sports assets.
What RPSG’s move says about sports assets
The proposed transaction is also a sign that Indian sports franchises are becoming increasingly investable assets.
For decades, ownership of Indian cricket teams was largely associated with industrial groups, entrepreneurs and media businesses.
The recent transactions show a wider range of investors entering the sector.
Private-equity firms, global sports investors, major Indian business groups and wealthy individuals are increasingly examining franchise ownership as a long-term alternative asset.
That could create a more active secondary market for IPL stakes.
If minority transactions become more common, existing owners may have more opportunities to monetise part of their holdings without giving up control.
The bigger picture
The reported LSG stake sale comes at a time when IPL franchises are being repriced as scarce sports assets with multiple sources of commercial value.
For RPSG, selling 15–20% at a $1.5 billion–$2 billion valuation would potentially monetise a meaningful portion of the value created since the group’s ₹7,090 crore acquisition while leaving it in control of the franchise.
For the broader IPL ecosystem, the development could reinforce the idea that franchise ownership itself is becoming an investable asset class. The recent RCB and Rajasthan Royals transactions provide valuation benchmarks, while a successful LSG minority deal could establish another reference point for future transactions.
Looking Ahead
The immediate question is whether RPSG can attract an investor at its targeted $1.5 billion–$2 billion valuation. The appointment of an adviser, the structure of minority rights and the offers received will determine whether the reported plan progresses into a transaction.
If the deal happens, the bigger significance may extend beyond LSG. A successful minority sale could demonstrate that IPL owners can unlock substantial capital without surrendering control, potentially encouraging other franchise owners to explore similar structures as the commercial value of Indian cricket continues to rise.
Frequently asked questions
Is RPSG Group definitely selling a stake in Lucknow Super Giants?
No. The transaction is reportedly being explored, but RPSG has not publicly confirmed that a sale will take place. Reports say the final decision will depend on valuation and investor interest.
How much of LSG could RPSG sell?
Current reports indicate a potential sale of 15–20%. An earlier March 2026 report had described a possible sale of up to 15%, suggesting that the size of the proposed transaction may still be under discussion.
What valuation is RPSG seeking for LSG?
Reports say RPSG is seeking a valuation of approximately $1.5 billion to $2 billion. At that valuation, a 15–20% stake would theoretically be worth $225 million to $400 million.
How much did RPSG pay for Lucknow Super Giants?
RPSG acquired the Lucknow franchise for ₹7,090 crore, or approximately $800 million, in November 2021.
Who owns Lucknow Super Giants?
LSG is owned by RPSG Group through RPSG Sports. The team’s official website identifies Sanjiv Goenka as its principal owner.
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