Diageo Plc is exploring options for its ownership of the Indian Premier League cricket franchise Royal Challengers Bengaluru.
The British distiller has been in discussions with potential consultants as it considers options such as selling a portion or all of the club, according to sources. Diageo owns the club through its Indian business, United Spirits Ltd, and could seek a valuation of up to $ 2 billion, according to sources.
The move comes as Diageo faces increasing regulatory pressure from the Union Health Ministry to reduce indirect alcohol promotion during major sporting events such as the IPL.
Historically, the company has relied on soda and non‑alcoholic brand extensions to maintain awareness under existing constraints, a strategy that may soon be limited due to stricter advertising standards.
RCB Valuation Rise
The prospective sale comes as IPL franchise valuations continue to rise due to the league’s significant commercial growth, placing it on par with the NFL and the English Premier League in terms of global prominence and advertising revenue.
For Diageo, the timing could be advantageous. The company is experiencing a decline in premium spirits sales in its major market, the US, as well as broader global cost challenges. Selling RCB, a non‑core part of the business, might free up capital and allow Diageo to focus on its primary operations.
Vijay Mallya, a liquor tycoon, originally controlled RCB, one of the IPL’s founding franchises. Diageo later acquired Mallya’s struggling drinks business and the team came under its ownership.
RCB IPL Win
The Indian Premier League has become a global entertainment and advertising powerhouse, rivalling the commercial success of the National Football League and the English Premier League. The league’s concise three‑hour matches draw hundreds of millions of viewers in India and worldwide.
RCB recently won its first IPL title, a major milestone that has boosted its visibility and commercial appeal. With Virat Kohli, one of the world’s most popular cricketers, on its roster, RCB holds significant market appeal, especially on digital media.
The IPL’s increasing valuations have positioned franchise ownership as one of the most coveted assets in sports. A sale could establish a benchmark for future transactions in what is already one of the world’s fastest‑growing sports leagues.
