In the competitive landscape of Indian sports leagues, a stark contrast in profitability has emerged, with the Indian Premier League (IPL) and Pro Kabaddi League (PKL) outshining the struggling Indian Super League (ISL) in financial success.

Despite celebrating its 10th year of operation, the ISL continues to grapple with financial challenges, with many franchises operating in the red. While PKL, boasting a low-cost model with a franchise fee as low as ₹1.5 crore and manageable player costs, swiftly turned profitable. This stark divergence in financial outcomes has drawn attention to the sustainability of India’s burgeoning sports leagues.
The underlying financial dynamics are illuminated by the experiences of prominent investors in the sports arena. Heavyweight investors such as JSW Sports (associated with Bengaluru FC), Dani Foundation (linked with Chennayin FC), and Tata Steel (supporting Jamshedpur FC) are reportedly incurring substantial annual losses ranging from ₹30 to ₹40 crore. A sports business analyst noted, “Promoters of some of the franchises can’t afford this kind of loss. Since Reliance Foundation has deep pockets, it supports these teams.”

The support of Reliance Foundation notwithstanding, only a handful of ISL teams, notably ATK Mohan Bagan under the RPSG Group, are nearing break-even. The struggle for profitability is particularly evident when juxtaposed with the roaring success of the IPL, which stands as a beacon of profitability in the Indian sports landscape.
According to Parth Jindal of JSW Sports, the IPL’s immense profitability, estimated to be 10 times that of PKL, underscores the financial challenges faced by the ISL. Jindal elucidated, “The profitability of IPL is 10x of PKL and the loss of ISL is 10 times that of IPL.” The JSW Group, with its ₹600 crore sports business portfolio, credits much of its success to the IPL. Jindal revealed that while the men’s IPL team reported an average EBITDA of ₹350 crore, the PKL team managed a modest profit of ₹2 crore, while Bengaluru FC incurred losses amounting to ₹30 crore.
This glaring contrast in financial performance raises pertinent questions about the sustainability and viability of sports ventures in India. As the IPL continues to thrive, the ISL faces mounting pressure to recalibrate its financial model and secure its position in the competitive sports market.