Bengaluru: Is RCB Getting Sold After IPL Triumph?
Royal Challengers Bangalore (RCB), fresh off its maiden IPL title win in 2025, may see a change in ownership as parent company Diageo Plc explores divesting its stake. Industry sources suggest the franchise could fetch up to $2 billion. The move comes amid regulatory pressures and strategic financial considerations.
Strategic Review Underway
Diageo, through its Indian subsidiary United Spirits Ltd., is engaging preliminary discussions with advisors to explore partial or full stake sales of RCB. The franchise’s valuation has surged following its IPL victory, enhancing its commercial appeal. No official confirmation has been issued by Diageo or United Spirits.
Soaring Franchise Value
RCB’s brand value has skyrocketed, with estimates pegging the franchise at $2 billion, driven by its massive fanbase and recent on-field success. The IPL’s growing global stature, comparable to the NFL and English Premier League, fuels such high valuations. This financial milestone underscores the league’s commercial ascent.
Regulatory and Market Pressures
India’s health ministry has intensified scrutiny over alcohol-related advertising in high-profile events like the IPL, pressuring Diageo. Declining premium liquor sales in key markets like the U.S. have also prompted cost-cutting measures. These factors may be driving Diageo’s strategic reassessment of RCB ownership.
Ownership Evolution
RCB was originally owned by Vijay Mallya before Diageo acquired United Spirits in 2012, taking control of the franchise. The team’s global appeal, bolstered by cricket icon Virat Kohli, has significantly enhanced its marketability. The recent IPL win further amplifies its commercial prospects.
Recent Financial Performance
- Revenue Surge: RCB’s revenue soared 163% to ₹650 crore in FY24, up from ₹247 crore the previous year.
- Profitability: The franchise recorded a net profit of ₹222 crore, driven by increased commercial traction.
- Fanbase Impact: RCB’s loyal following and Kohli’s global stardom continue to boost its financial viability.
Industry and Fan Sentiment
Posts on X reflect mixed reactions, with some fans expressing shock at the potential sale, while others see it as a strategic move to capitalize on RCB’s peak valuation. The decision could reshape the IPL’s ownership landscape. Discussions remain speculative pending official announcements.
Potential Implications
A successful stake sale could unlock significant value for Diageo, potentially attracting global investors. However, it raises questions about RCB’s future management and brand identity. The IPL’s rising prominence ensures continued interest in the franchise’s next chapter.