Just weeks after clinching their first-ever IPL championship, Royal Challengers Bengaluru (RCB) could witness a dramatic shift in ownership. British beverage giant Diageo Plc is reportedly considering selling part or all of its stake in the franchise, seeking a jaw-dropping valuation of up to $2 billion.
The move, insiders suggest, is prompted by tightening regulatory pressures in India and the company’s broader strategic realignment amid a slowdown in global liquor markets.
💼 Why Diageo May Be Exiting
Diageo controls RCB through its Indian arm, United Spirits Ltd., which acquired the team from original owner Vijay Mallya. However, recent developments—including the Indian Health Ministry’s push to ban alcohol and tobacco branding in sports—have disrupted Diageo’s marketing strategy in the cricket-crazy nation.
With indirect branding now under threat, the very purpose of owning a high-profile IPL team is being questioned within boardrooms.
Additionally, Diageo is facing declining liquor sales in key markets, including the U.S. A sale could help it unlock capital to double down on core operations and explore emerging markets more aligned with its beverage portfolio.
📈 RCB’s Valuation Skyrockets
RCB has long been a marquee franchise in the IPL ecosystem, largely thanks to its massive fan base, digital dominance, and star power, including Virat Kohli. The team’s maiden title win in 2025 has only supercharged its valuation.
With the IPL now rubbing shoulders with global leagues like the NFL and Premier League, RCB’s brand value is at an all-time high, making it a magnet for private equity, sports venture funds, and tech investors looking to ride the IPL wave.
🔍 What Happens Next?
According to sources, Diageo has roped in advisors to evaluate multiple scenarios—from selling a minority stake to executing a complete divestment. While discussions are in early stages, one thing is clear: RCB is hot property right now.
“This is the right time to monetize the franchise’s success,” said a Mumbai-based sports analyst. “The ₹2 billion valuation reflects the seismic shift in India’s sports economy.”
📊 Business Impact & Industry Outlook
A potential RCB sale could set new benchmarks for IPL franchise valuations, further legitimising the league as an asset class for institutional investors. It could also influence future brand strategies as global firms become more cautious about regulatory exposure in emerging markets like India.
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