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The Royal Challengers Bengaluru (RCB), one of the Indian Premier League’s most iconic franchises, is at the center of major ownership speculation just weeks after clinching their first-ever IPL title in 18 years. Diageo Plc, the British spirits giant that owns RCB through its Indian arm United Spirits Ltd., is reportedly considering selling part or all of its stake in the team, according to a Bloomberg report. The potential transaction could value the franchise as high as $2 billion, reflecting RCB’s heightened brand value after their historic victory.
A new era for RCB or Diageo’s strategic dilemma?
Diageo’s contemplation of a stake sale comes at a pivotal moment. The company has initiated early discussions with advisers and is open to a range of possibilities, from a partial divestment to a complete exit from the franchise. While no final decision has been made, insiders suggest that Diageo is keen to unlock value from RCB’s soaring profile, especially after the team’s maiden title win.
Several factors are influencing this move. Diageo is reportedly looking to streamline its global operations and refocus on its core beverage business, particularly as it faces headwinds in its largest market, the United States. There, liquor sales have been pressured by tariffs and shifting consumer demand. Additionally, regulatory scrutiny in India is intensifying, with the health ministry pushing for stricter bans on indirect advertising of alcohol and tobacco in sports. This could further limit the visibility of brands like Diageo in marquee events such as the IPL, making continued ownership less attractive from a branding perspective.
The news of a possible sale has already had a tangible impact on the market. Shares of United Spirits surged by as much as 3.3% in Mumbai trading, reaching a five-month high as investors reacted to the prospect of a lucrative deal.
Also READ: Here’s how much compensation RCB offered to victims of the tragic stampede in Bengaluru
RCB’s historic win and its ripple effects
RCB’s 2025 IPL triumph was a watershed moment for the franchise, breaking an 18-year title drought and electrifying its massive fanbase. The celebrations, however, were overshadowed by tragedy when a stampede at a public event in Bengaluru claimed at least 11 lives, raising questions about event management and public safety. This incident has reportedly added pressure on Diageo, as the company faces scrutiny over its handling of the aftermath and its responsibility as a high-profile team owner.
RCB’s journey has been marked by star power and drama. Initially bought by Vijay Mallya’s United Spirits for $111.6 million—making it one of the most expensive franchises at the IPL’s inception—the team became part of Diageo’s portfolio after it acquired United Spirits. The franchise’s popularity has been anchored by cricketing icons like Virat Kohli, whose association has been central to RCB’s brand value and marketability.
The IPL itself has evolved into one of the world’s most valuable sports leagues, with global viewership and immense advertising clout. A successful sale of RCB at a $2 billion valuation could set a new benchmark for franchise values in the league and signal a new era of commercial sophistication in Indian cricket.
Also READ: Gautam Gambhir slams RCB’s IPL title victory parade after Bengaluru tragedy
