#36. Breaking Down the Insanely Simple Business Model of RCB

We watch the IPL for the drama, the sixes, and the heartbreaks.

We invest our emotions, our hopes, and sometimes, our sanity, into the teams we follow. But behind every cheer and every tear, there's a business. A big one.

And for years, the Royal Challengers Bengaluru (RCB) were the ultimate enigma: a team that consistently captured hearts, built a massive brand, but never quite lifted the trophy. Until 2025.

In fact, RCB is more a super successful media company than a cricketing franchise. They crafted & built fan loyalty like no other, over the years, which almost every team is “trying to do”, but no one has even come close to. Maybe apart from CSK, who built their fan base by hating on RCB (just joking :)), I don’t think any team even comes close to the fanhood & fan loyalty that the RCB team has managed to build around themselves.

Fan loyalty is not just about who shouts the loudest on social media but who goes out of their way and spend a significant amount of money buying official merchandise and pays money to watch their team practice (not an IPL game, but just practice). In fact, they are the only franchise in the country that has created a slew of ancillary businesses like the RCB Bar & Cafe, an athleisure line in collaboration with Puma. They launched a fitness platform called Hustle by RCB, a plant-based meat range called RCB Uncut, and a pre-season event called RCB Unbox, where fans can go and see the entire squad practicing, along with live performances.Can you name any other team that has done that at such scale?

When you think of RCB’s content game, the first thing that pops up in most people’s heads is Mr. Nags (played by Daanish Sait). He brought a refreshingly different angle to the content creation & consumption game, when other teams were just posting behind-the-scenes content. RCB saw it as a brand development and monetization tool.

You could also argue that their fan loyalty came from bidding and acquiring star players like AB De Villiers, Chris Gayle, or Pradeep Sangwan (oh…I mean Virat Kohli). But in fact, I’d argue that they knew what they were doing, they were trying to build a “media company” & acquiring entertainers over consistent match winners :)

So, how did RCB build a business worth hundreds of millions, even when the IPL trophy was missing for all these years?

Can you even think of any other team, either in the EPL (football) or in the NBA (basketball) where a team that has not won the championship is/was as revered as RCB?

I guess not!

Let me tell you why & how RCB built a billion-dollar franchise when most other teams just tried to copy their content playbook.

When you think of any team in the IPL, it's easy to forget that behind the glitz and glamour, they aren’t just a cricket team; they are a corporate entity. RCB as well is one such team that is owned by United Spirits Limited (USL), a major player in India's liquor industry and a subsidiary of the British multinational beverage company Diageo, this isn't some passion project run out of a garage. This is serious business.

And what a business it is!

Even before their historic 2025 IPL triumph, RCB was already one of the most valuable teams, with its brand worth around $117 million in 2024.

Post-win, that value is projected to soar past $140 million, potentially positioning it to become the most valuable IPL franchise in 2025.

So, where does the money actually come from?

• The biggest, most stable chunk is the Central Media Pool.

The BCCI, the league's governing body, sells broadcasting and central sponsorship rights for astronomical sums—we're talking thousands of crores. A significant portion of this, 50% to be precise, is then distributed among the teams.

For RCB in the 2025 season, this meant a whopping ₹421.8 crore, including a performance bonus for winning the title.

This is the bedrock, the predictable cash flow that keeps the lights on.

• Next up, Sponsorships. This is where RCB truly shines, leveraging its immense popularity and Virat Kohli's global appeal.

Brands line up to get their logos on jerseys, sleeves, and collaborate on digital content.

Think of Qatar Airways as a main title sponsor, alongside principal partners like Birla Estates, KEI Wires, and Reliance JIO.

In FY25, RCB pulled in an estimated ₹123.7 crore from these direct brand deals. It's a testament to their 'brand'.

• Then there's the Matchday & Stadium Revenue, which includes ticket sales from their seven home games at the M. Chinnaswamy Stadium, in-stadium branding, and food & beverage sales. Even when the team wasn't winning, the loyal fans filled those ~35,000 seats. This brought in an estimated ₹30–₹35 crore.

• And let's not forget Merchandise & Licensing – jerseys, caps, flags, even throw pillows. RCB's partnership with Puma for their clothing turned fan loyalty into tangible revenue.

• Finally, the cherry on top: Prize Money. Winning the 2025 IPL title netted RCB ₹20 crore. While it sounds like a lot, it's actually a relatively small piece of their overall revenue pie, which stood at ₹597.5 crore in FY25.

But running a team isn't cheap. The biggest expense?

• Player Salaries. In 2024, RCB's total player salaries amounted to ₹100 crore. Virat Kohli, as expected, commands the highest salary at ₹17 crore.

It's interesting to note that IPL player salaries, as a percentage of total revenue, are significantly lower than in leagues like the English Premier League.

This highlights the unique financial structure of the IPL, where the league itself retains a larger share of the pie.

Here's the uncomfortable truth, or perhaps the liberating one: for years, RCB proved that you don't have to win the trophy to be a financial powerhouse. Their massive fan engagement, fueled by star players and consistent digital presence, allowed them to command premium sponsorship rates and drive merchandise sales, regardless of on-field performance.

The 2025 title is a fantastic bonus, a validation, but the business model was already bulletproof. It's about building a brand that transcends wins and losses.

So, what's the takeaway from RCB's journey?

It's a masterclass in sports business. It's about understanding that passion on the field needs shrewd business acumen off it. It's about building a brand so strong, so deeply connected with its audience, that it can thrive even through the lean years. The IPL is a dynamic mix of thrilling cricket and strategic monetization, and RCB's story is a perfect example of how a team can turn fan loyalty into a multi-million-dollar enterprise.

The trophy is finally home, but the real victory was always in the business model. And that, my friends, is how you build a sports business!