RCB Up For Sale After Bengaluru Stampede As Diageo Set To Part Ways With IPL Franchise
Published - 10 Jun 2025, 01:07 PM | Updated - 10 Jun 2025, 02:48 PM
British spirits giant Diageo Plc is reportedly exploring the possibility of selling all of its stake in the IPL franchise Royal Challengers Bengaluru (RCB).
Earlier this month, the Bengaluru-based outfit won its maiden IPL title. The Rajat Patidar-led side beat Punjab Kings by 6 runs in a thrilling final at the Narendra Modi Stadium. Just days after RCB won their maiden IPL trophy, Diageo Plc is looking to part ways with the franchise, according to Bloomberg. The British company owns the team through its Indian subsidiary, United Spirits Ltd.
The company has already started discussions with advisers. The report stated that the franchise could be valued at up to $2 billion. The British company's move comes as it faces regulatory pressure from the Union Health Ministry to curb indirect advertising of alcohol during major sporting events like the IPL.
The company has historically leveraged soda and non-alcoholic brand extensions to maintain visibility under existing restrictions. However, even that strategy could be prohibited under stricter advertising norms.
"The Indian Premier League (IPL), being India’s most viewed sporting event, sends a contradictory message to the public about health and fitness when it allows the direct or indirect promotion of tobacco and alcohol," the ministry had said in a statement earlier this year.
RCB's huge market appeal:
Even though Diageo wants to sell its stake in the RCB, the franchise remains one of the most popular teams in the league. The recent victory will only enhance the team's ever-soaring popularity. Virat Kohli's presence in the team also gives it a huge market appeal, particularly across digital platforms.
The franchise is one of the eight original teams founded by the BCCI before the start of the IPL in 2008. The team was first owned by liquor tycoon Vijay Mallya. Later, Diageo took charge of the team after taking over Mallya’s beleaguered spirits empire.
The report added that the British company is tempted to sell RCB because of the franchise's soaring value. Things are not going well for the company at present due to a decline in premium liquor sales in its largest market, the United States. As a result, it is looking to sell the IPL franchise in order to free up funds and focus on its main operations.
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