Diageo, the global liquor company and majority owner of the Indian Premier League (IPL) franchise Royal Challengers Bengaluru (RCB), is reportedly considering selling part or all of its stake in the team. According to sources familiar with the development, the company has initiated early-stage discussions with investment banks to assess strategic options.
The franchise is currently operated by United Spirits Limited (USL), Diageo’s Indian subsidiary. Diageo gained control of RCB in 2016 following its acquisition of USL from Vijay Mallya’s UB Group. Although RCB has not secured an IPL title to date, it remains one of the league’s most valuable and widely followed franchises, thanks to its loyal fan base and association with prominent players like Virat Kohli.
The reported move comes amid Diageo’s efforts to streamline its business focus and prioritize its core operations in the beverage sector. With IPL franchise valuations at an all-time high, the timing is considered favorable for a potential exit or partial divestment.
Analysts believe RCB could attract significant investor interest due to its strong brand equity. As per earlier estimates by valuation firm Kroll (formerly Duff & Phelps), RCB was valued at around ₹697 crore in 2022. However, that figure is expected to be considerably higher today, reflecting the rapid commercial growth of the league.
In recent years, the IPL has seen a rise in corporate and private equity interest, with several teams witnessing changes in ownership or investment patterns. A successful transaction involving RCB would mark another major shift in the league’s financial and ownership landscape.
There has been no official confirmation from Diageo or United Spirits regarding the reported sale. Sources indicate that a formal decision is yet to be made and that the company is currently evaluating its options.
RCB concluded its IPL 2024 campaign with a late surge, making it to the playoffs after six consecutive wins but failing to progress past the eliminator. Despite the on-field results, the team continues to enjoy strong commercial support, merchandise sales, and digital engagement.
If a stake sale is finalized, it could lead to changes in the franchise’s management structure, branding strategy, and future operations.
