IPL franchises, fans to feel the heat of 40% GST on tickets

Watching the Indian Premier League (IPL) is set to get costlier with the Government raising the Goods and Services Tax on ticket prices to 40 per cent from 28 per cent.

While the internet is flooded with angry “boos” from panicked fans, experts say the franchise will face the brunt from this decision.

The government on Thursday announced a special de-merit GST rate of 40 per cent for “a select few goods and services” like “admission to casinos, race clubs… or sporting events like the IPL.” Officials in the Board of Control for Cricket in India (BCCI) said they will be going through the details of the new provision before any formal reaction.

The rate increase translates into thinner margins for franchise, as per Praveen Nijhara, CEO, Hansa Research Group. Higher GST could reduce stadium footfall and match-day revenues, directly impacting earnings from ticketing, concessions and merchandise.

“They will need to work harder to attract sponsors and create value through fan engagement beyond match-day sales,” said Nijhara.

This may prove to be a tall order for the teams considering, major franchises such as Chennai Super Kings, Royal Challengers Bangalore and Mumbai Indians already reporting a 20 per cent, 36 per cent and 35 per cent decline in profits respectively in FY25.

The passing of the Promotion and Regulation of Online Gaming Bill has also led to the exit of many real money gaming companies including two of IPL’s jersey sponsors Dream11 and My11Circle.

According to business strategist and independent director Lloyd Mathias however, while the GST rates will pinch franchise pockets in the short term, it won’t translate to a huge impact.

“Cricket has got enough of headwinds going for it. I’m sure the BCCI will be able to take this at its stride. The franchise owners for whom this is going to be a little bit of a setback are already very wealthy business houses and large private equity firms,” he said, adding that gate sales are not a big part of their income as compared to media rights and advertising contracts. He also praised the government for bringing IPL under the 40 per cent slab considering the huge amount of money involved.

As for the fans, Nijhara expected the hike to make match attendance significantly expensive.

“The casual audiences and family attendance could see a decrease in the stadium viewing of these matches. This may push demand toward more affordable viewing formats like OTT or broadcast, shifting the balance of how fans consume IPL,” said Nijhara.

However, Ajimon Francis, Managing Director at Brand Finance India said it is too early to comment on any kind of impact by the GST hike until there’s a proper consultation by the government with interested parties.

“It will be a bit of a knee-jerk reaction if you ask about the impact right now. BCCI is considered as a trust and a nonprofit. If the ticketing revenue is charged higher, it will hit franchise owners. Within stadiums, there are price categories from ₹1500-10,000. Lower price categories may not be as harshly charged as the upper category,” he said.

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Published on September 4, 2025