RCB for Sale? Diageo Reportedly Mulling $2 Billion Franchise Deal

Diageo Plc, the owner of Royal Challengers Bangalore (RCB), is reportedly exploring strategic options for its ownership of the Indian Premier League (IPL) cricket franchise, including the potential sale of a partial or full stake, according to reports.

A multinational alcohol beverage company, Diageo holds ownership of RCB—one of the founding teams of the IPL—through its Indian subsidiary, United Spirits Limited.

The discussions come amid increasing regulatory scrutiny, as India’s Ministry of Health pushes to ban the promotion of tobacco and alcohol brands in the IPL and curb the indirect promotion of other unhealthy products by sports personalities.

Since direct advertising of tobacco and liquor is prohibited in India, companies like Diageo often use surrogate advertising—promoting products such as soda or water—featuring top cricketers to maintain brand visibility.

While no final decision has been made, reports suggest that Diageo could seek a valuation of around $2 billion for the franchise.

In the U.S.—Diageo’s largest market—a combination of tariffs and a consumer spending slowdown has impacted premium liquor sales. A potential divestment of RCB could unlock capital as the company looks to streamline its operations and reassess non-core assets globally.

With IPL franchise valuations soaring, team ownership has become one of the most sought-after assets in sports. A high-profile sale of RCB could set a benchmark for future deals in what is now one of the world’s fastest-growing sports leagues.

RCB was originally acquired by beer baron Vijay Mallya. After the collapse of Kingfisher Airlines in 2012 and subsequent financial troubles, Mallya failed to repay creditors. Diageo later acquired RCB as part of its purchase of Mallya’s spirits business.

The franchise recently secured its first IPL title in 18 years, significantly boosting its value. The team also features Virat Kohli—one of the world's most prominent athletes and the cricketer with the largest social media following globally.