Ask Perplexity

In 2007, Lalit Modi, an Indian media mogul, pitched a new cricket league that would forever change the sport. Inspired by the NFL and EPL, his vision was huge - short, city-based matches with cheerleaders, Bollywood stars and primetime TV slots. But how did it unfold?

The seeds were sown during the 2007 T20 World Cup. Yuvraj Singh had just smashed six sixes in an over against England's Stuart Broad. T20 cricket had won as THE format to captivate audiences. Modi saw this as an opportunity to transform cricket from a traditional 5-day sport into a global entertainment phenomenon.

In September 2007, Modi secured $25 million from the BCCI to launch the league—but with strings attached. He had to run operations from his personal office, take no salary, and fund all expenses himself. The stakes were high, and Modi needed to attract fans to his new league ASAP. But how?

Enter Bollywood. Bollywood and cricket are two of the biggest cultural phenomena in India, and Modi recognized that combining the two would create a massive appeal. Modi offered Bollywood stars like Shah Rukh Khan and Preity Zinta ownership deals that required minimal financial risk upfront. Instead of paying large sums to acquire teams outright, they were given equity stakes in teams in exchange for their brand value and promotion.

But while Bollywood brought eyeballs, India's billionaires brought financial muscle. Modi pitched the IPL as both a business investment and a platform for influence. Owning an IPL team in 2008 cost between $67 million and $112 million - a fraction of what similar franchises in the U.S. or Europe would cost. Investors like Mukesh Ambani and N. Srinivasan piled in, investing heavily in players, infrastructure and marketing.

Modi made other critical decisions that propelled the IPL to the world stage. The player auction, which included international superstars from Chris Gayle to AB de Villiers, was in itself a spectacle. Intense bidding wars between teams generated significant media attention, with fans eagerly watching to see which players their favorite teams acquired.

But how did the IPL become such a large business? It came down to media rights. The rise of the IPL coincided with the rapid penetration of TVs in Indian households, creating a massive audience eager to watch prime-time matches. Modi, who had a background in media, negotiated lucrative deals by creating competitive bidding processes between broadcasters like Sony and Nimbus. Today, the per-match value of IPL media rights is higher than that of the NBA and EPL, making it second only to the NFL globally.

In less than two decades, IPL became one of the richest sports leagues in the world—worth over $15B today. By blending Bollywood glamour with billionaires and top-tier talent, it created a league that redefined sports entertainment.