Ares Management in talks for minority stake in Shah Rukh Khan, Jay Mehta, Juhi Chawla

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US-based global alternative asset manager Ares Management is in talks to acquire a minority stake in Kolkata Knight Riders ( KKR), three-time winners of the Indian Premier League ( IPL), people familiar with the matter told Moneycontrol.

The KKR franchise is owned by Knight Riders Sports Private Ltd, which was set up in 2008 as a joint venture between Bollywood superstar Shah Rukh Khan's Red Chillies Entertainment, actress Juhi Chawla and industrialist Jay Mehta backed Mehta Group.

The ongoing discussions between Ares and KKR underscore the continued attractiveness of the BCCI-organised T20 cricket league as an investment destination, post the sales of Royal Challengers Bengaluru (RCB) and Rajasthan Royals ( RR) earlier this year.

" The RCB and RR deals were majority stake sales. But in the case of KKR, it’s only one of the co-owners, Jay Mehta- led Mehta group, which plans to offload a minority stake and unlock value. Discussions have been held with Ares Management in this regard but no final call has been taken as yet," one of the persons told Moneycontrol, adding that deliberations are ongoing and deal modalities are subject to change.

On December 18, 2025, Moneycontrol was the first to report that a part stake sale was brewing at KKR with investment bank Nomura mandated as the sell-side advisor.

A second person said that the Mehta Group was exploring the sale of around 20 per cent stake and targeting a premium valuation for the franchise, upwards of $1.8 bn. " It will be interesting to see at what valuation the proposed deal settles," this person said, adding that the negotiations may or may not necessarily result in a transaction and other rival suitors may join the fray later if required.

According to reports, Red Chillies Entertainment owns a majority stake of 55 per cent in the joint venture, Mehta Group owns the balance 45 per cent stake and the trio of Khan, Chawla and Mehta ( Chawla's husband) paid around $75 mn for the team in the inaugural IPL auction.

A third person also confirmed the interest of Ares Management in the proposed transaction. "Internationally, they have a diversified sports portfolio and they had explored opportunities and partnerships earlier when RCB and RR were in the market,” this person added.

The three persons spoke to Moneycontrol on the condition of anonymity.

When contacted, Ares Management declined to comment. Email queries and text messages to KKR and Jai Mehta remained unanswered at the time of publishing this article. Multiple reminders have been sent and this article will be updated as soon as we hear from the parties.

RCB was sold to a consortium of Aditya Birla Group, The Times of India Group, Bolt Ventures and Blackstone for approximately $.1.78 bn. On the other hand , a consortium of the Mittal family of Arcelor Mittal and Serum Institute’s Adar Poonawalla acquired RR for around $1.65 billion. Both deals are pending approval from the BCCI.

Will they shake hands?

Ares Management is present in credit , real estate, infrastructure, private equity and secondaries across 60 global offices with a combined AUM of $671 bn.

The firm has a specialized vertical called Ares Sports, Media and Entertainment Opportunities , a private fund focused on making both debt and equity investments across global sports leagues, teams and sports-related companies as well as media and entertainment opportunities.

Some of its key bets included NFL team Miami Dolphins, Chelsea FC of the Premier League, La Liga’s Atletico de Madrid, Major League Soccer’s Inter Miami CF and others. Ares Management delivered stellar returns when it exited its minority stake in iconic Formula One team McLaren Racing last year.

Ares SSG, the credit and special situations platform of Ares in India, has invested in real estate, financials, industrials, consumer retail and other segments. Its single largest bet in India was the $380 mn acquisition of Altico Capital, the first resolution of a defaulting NBFC outside the insolvency and bankruptcy code.

According to the group's official website, Jay Mehta led Mehta Group has presence in India, Africa and USA and its business interests cover a wide range of sectors including cement and building materials (listed firm Saurashtra Cement Ltd), packaging, sugar, horticulture & floriculture, engineering, electrical cables, consultancy, agro chemicals, hospitality, trade and financial services.

As per the Hurun Rich List 2025, with a net worth of Rs 7,790 crores, former Miss India Juhi Chawla is the country's richest actress, with investments in sports (KKR) prime real estate and restaurants according to reports.

A walk down the KKR pitch

KKR , the only franchise , other than Mumbai Indians and Chennai Super Kings, to win the IPL title on multiple occasions , emerged triumphant in 2012, 2014 and 2024. Other than the three IPL trophies in its kitty, KKR also has a runner up trophy each from the 2014 Champions League T20 and IPL 2021. The team's primary home ground is the iconic Eden Gardens in Kolkata.

In the 2026 IPL auction, KKR bought Cameron Green for Rs 25.20 crore, making the Australian all-rounder the third-most expensive player sold at an IPL auction and the most expensive overseas player ever. KKR also shelled out Rs 18 crore for Sri Lankan fast bowler Matheesha Pathirana, the second-most expensive player at this year's auction, according to espncricinfo.com. The team finished the 2026 IPL season in seventh place with 13 points.

According to its Linkedin page, over and above KKR, Knight Riders Sports Private Ltd has also spread its presence around the globe by acquiring Trinbago Knight Riders - five-time champion and the most successful team in the CPL, Abu Dhabi Knight Riders in UAE's ILT20, and Los Angeles Knight Riders in Major League Cricket in the USA.

Earlier this week, the BBC reported that the owner of KKR, Knight Riders Group, would be interested in buying a stake in a new Hundred franchise if the competition expands from eight franchises to ten. The Hundred is a professional cricket league in England and Wales.

Why is the IPL a lucrative opportunity?

As per the "IPL Valuation Study 2025 " by Houlihan Lokey, the IPL business value has risen to $18.5 bn from $15.4 bn in 2023. On the other hand, the IPL brand value rose to $3.9 bn from $3.2 bn in 2023.

As per the study, KKR had a brand value of $227 mn, maintaining the fourth position on the brand value chart behind RCB ( $269 mn), Mumbai Indians ( $242 mn) and Chennai Super Kings ( $235 mn)

The study also highlighted the difference between the IPL and global sports leagues like the NBA and EPL when it came to aspects like transfer fees and operating costs.

"From a dealmaker’s lens, IPL represents a near-perfect blend of predictable cash flows and cost discipline, a rarity in the global sports asset universe. Revenues are underwritten by BCCI’s long-term, well-negotiated media rights contracts and front-loaded sponsorship deals, creating annuity-like cash flows. “

“The top franchisees clock ~₹6,500 million to ~₹7,000 million in annual revenues, with up to 80% visibility secured before the start of the tournament. On the cost side, the presence of a salary cap (₹1,200 million per team) functions as an embedded margin protector, preventing wage inflation (a major concern for global sports teams) and ensuring competitive parity among teams. Moreover, franchisees operate with minimal fixed-asset exposure, benefitting from ready access to stadium infrastructure already created by BCCI, translating into a capital-light model with structurally high return on employed capital," the report said.

The study added, "When benchmarked against global peers like EPL and NBA teams that wrestle with high player transfer fees, variable wages, and high stadium operating costs (including servicing stadium debt), IPL franchisees operate with an asset-light, revenue-guaranteed model, a structure that not only cushions downside risk but also amplifies operating leverage on the upside. For institutional investors, this makes the IPL not just a sports league but a high-growth compounder in the entertainment space, catering to a fast-growing fan base with rising disposable income and a strong appetite for premium digital experiences."

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