Pro Kabaddi League (PKL) is negotiating its next media rights deal, with broadcaster JioStar seeking a fee reduction of up to 50% from the previous ₹905 crore benchmark. This potential valuation adjustment has sparked concerns among franchise owners regarding future profitability. The league’s operator, Mashal Sports, continues to report profit growth, but stagnant viewership and sector-wide advertising headwinds are complicating the deal.
The next media rights cycle for the Pro Kabaddi League has entered a critical stage as broadcaster JioStar and franchise owners struggle to find common ground on valuation. JioStar is reportedly seeking a reduction of up to 50% in the rights fee, while franchises are pushing to maintain the ₹905 crore benchmark set during the previous five-year agreement. This standoff highlights the growing pressure on sports properties to justify high valuation figures amid a changing media landscape.
Financial Performance And Market Context
Mashal Sports, the operator of the Pro Kabaddi League, reported a net profit of ₹42 crore for FY26 on a revenue of ₹310 crore. This is a slight improvement from the FY25 net profit of ₹34 crore on revenue of ₹278 crore, reflecting the company’s ability to grow despite a tougher environment for sports media. However, these figures are now being tested by the challenging negotiations for the next rights cycle.
Broadcaster losses linked to the league, which are reported to be between ₹50 crore and ₹100 crore annually, have placed significant pressure on the valuation of media rights. The league remains India’s largest non-cricket sports property, yet total television and digital viewership has remained stagnant at approximately 230 million, with 190 million coming from television alone. This plateau in viewership makes it difficult for broadcasters to justify higher spending in the current market.
Challenges And Potential Risks
The negotiation is further complicated by the ownership structure of the league, as JioStar holds a 74% stake in Mashal Sports. This ownership has previously led rival broadcasters to question whether the structure inhibits competitive bidding, as no other bidder emerged during the last cycle. Furthermore, the broader media sector is facing headwinds, including the merger of Star India and Viacom18, falling linear television audiences, and stricter regulations regarding real-money gaming and betting advertisements, all of which limit revenue opportunities for sports broadcasters.
Franchise owners are particularly concerned about the risk of a significant valuation decline. They are closely watching the experience of the Indian Super League, where media rights values dropped sharply from ₹275 crore to ₹8.62 crore after the broadcaster exited the competition. To navigate this, stakeholders are discussing a revision of the revenue-sharing model. Currently, Mashal Sports retains 80% of media rights income, while the 12 franchises share the remaining 20%. Any shift that increases the franchise share could help teams maintain profitability, but it remains to be seen if this will satisfy the broadcaster's demand for lower rights fees. The path forward will likely depend on whether an open bidding process can attract enough participants to establish a fair market value for the league.