The cricketing world is buzzing as Royal Challengers Bengaluru (RCB) — the newly crowned IPL 2025 champions — has officially been put up for sale. British spirits giant Diageo Great Britain, which owns the team through United Spirits Limited, has initiated formal talks with potential buyers, signaling one of the most significant ownership changes in IPL history.

Diageo’s Strategic Exit

After nearly a decade of stewardship, Diageo has decided to exit the cricket franchise business to refocus on its core liquor operations. The company has appointed Citibank and other global advisors to oversee the sale process.

According to reports, RCB is being valued at around $2 billion (₹17,600 crore), with at least six serious contenders in the fray. Praveen Someshwar, MD and CEO of Diageo India, described RCB as “an exciting business but non-core for Diageo,” confirming the company’s intent to realign priorities.

The decision follows RCB’s emotional IPL 2025 title win in June, led by Rajat Patidar, which ended the team’s 17-year trophy drought. However, the victory celebrations turned tragic after a stampede during the Bengaluru victory parade claimed 11 lives — an incident that prompted Diageo to reconsider its involvement with the franchise.

The Potential Buyers

Interest in RCB spans both Indian industrial heavyweights and international investors. Among the frontrunners are:

  • Adar Poonawalla, CEO of Serum Institute of India, reportedly in talks to form a joint bid with a U.S.-based investment fund.

  • Parth Jindal of the JSW Group, though his stake in Delhi Capitals could face BCCI’s cross-ownership restrictions.

  • The Adani Group, which already owns the Gujarat Giants in the Women’s Premier League and has previously expressed strong interest in expanding its IPL footprint.

  • A prominent Delhi-based business magnate with diversified sector holdings.

  • Two U.S. private equity firms exploring full or partial acquisitions, signaling the league’s growing global appeal.

What’s Driving the Massive Valuation

The surge in IPL franchise valuations is closely linked to India’s booming media rights ecosystem. With the JioHotstar merger surpassing 500 million subscribers, experts estimate potential subscription revenues of ₹20,000 crore per IPL season if monetized effectively.

Cricbuzz analysts suggest that investors view IPL ownership not merely as a sports venture but as a high-yield media and digital entertainment asset, comparable to global leagues like the NBA or the Premier League.

Lalit Modi’s Confirmation Adds Fuel

Former IPL chairman Lalit Modi confirmed the RCB sale in a detailed post on X, stating that Diageo had “finally decided to take it off their balance sheet.” Modi predicted that the transaction could “set a record valuation for an IPL team,” hinting that a sovereign wealth fund or global investor might eventually secure the deal.

He praised Citibank’s advisory role and called the sale “a landmark moment for the IPL’s business evolution.”

From Mallya to Diageo — and Now What’s Next

RCB’s ownership journey mirrors the IPL’s own rise. Originally bought by Vijay Mallya’s United Breweries in 2008 for $111.6 million, RCB has grown into one of cricket’s most valuable brands, with a brand valuation of $269 million in 2025 — the highest in the league.

However, internal differences between Diageo’s UK and Indian divisions reportedly delayed the decision to sell. With Citibank now managing the auction process, the handover appears imminent.

The new ownership could reshape not only RCB’s business model but also the broader financial dynamics of the IPL, as investors increasingly see franchises as long-term digital sports assets rather than seasonal cricket teams.

 

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