RCB for sale? Diageo to review interest in IPL franchise: Reports

It is presumed that Diageo -- will begin a strategic review of its investment in the IPL franchise as the spirits maker plans to focus more on its core -- alcohol business.

The rumours over sale of Indian Premier League (IPL) champions Royal Challengers Bengaluru (RCB) has resurfaced with reports emerging that its current owners -- Diageo -- will begin a strategic review of its investment in the unit as the the spirits maker plans to focus more on its core -- alcohol business.

United Spirits Ltd sells brands such as "Royal Challenge" whisky and "Smirnoff" vodka.

It has benefited from affluent Indians splurging on premium products including high-priced liquor to watches and jewellery.

RCB has teams compete in both men's IPL and and Women's Premier League -- an annual franchsie-based T20 tournament hosted by the Board of Control for Cricket in India.

Earlier this year, RCB's men's team, who has Virat Kohli as its marquee player, clinched a maiden IPL title, while the women's team which is led by Smriti Mandhanna had won title in 2024.

Royal Challengers Sports Pvt Ltd "has been a valuable and strategic asset" but is "non-core" to United Spirits' alcobev business, CEO Praveen Someshwar said in an exchange filing. The firm will continue to review its India portfolio, he added.

The company did not disclose details of its investment in Royal Challengers Sports. Diageo was seeking a valuation of about $2 billion for the team earlier this year, according to media reports.

The sports business accounted for 8.3 per cent of United Spirits' total core profit for the year ended March 31, 2025.

United Spirits said the review process will be completed by March 31, 2026.

RCB's stocks had increased after they ended their 17-year-old wait by clinching their maiden IPL title which propelled the franchise's valuation to $269 million, and helped them dethrone 'sentimental favourites' Chennai Super Kings from the top spot.

Business tycoon Vijay Mallya had owned RCB right from its inception before liquor barons Diageo Plc bought them in 2016.

The talk of a sale first emerged in June after RCB’s maiden IPL title win was followed by a deadly stampede outside the Karnataka State Cricket Association-owned Chinnaswamy Stadium in Bengaluru that resulted in loss of 12 lives.

(with inputs from agencies)