Is RCB Getting Sold? To Whom and When
Is RCB Getting Sold? To Whom and When. In June 2025, Diageo Plc, the renowned British beverage conglomerate, found itself at the center of major headlines as reports surfaced about its intention to divest its stake in the Indian Premier League (IPL) franchise, Royal Challengers Bengaluru (RCB). This development comes at a pivotal time for both Diageo and RCB, especially following RCB’s triumphant maiden IPL title earlier this year—a victory that has significantly boosted the team’s brand value and market appeal.
A Glance at Diageo Plc’s Strategy
Diageo Plc, globally recognized for its portfolio of leading spirits brands, has been a dominant force in the beverage industry for decades. However, recent years have presented new challenges for the company, particularly in its core markets such as the United States, where it has faced slowing premium liquor sales and the impact of international tariffs. Against this backdrop, Diageo has been actively reviewing its global assets to optimize its business strategy and unlock value for shareholders.
One of the most significant assets under its Indian subsidiary, United Spirits Ltd., is the Royal Challengers Bengaluru franchise. With the IPL’s meteoric rise as one of the world’s most lucrative sports leagues, RCB has become a crown jewel in Diageo’s portfolio. Yet, mounting regulatory pressures in India—especially concerning the indirect promotion of alcohol brands through sports sponsorships—have prompted Diageo to reconsider its long-term involvement in the IPL.
The RCB Stake: What’s at Stake?
According to industry insiders, Diageo is currently weighing its options regarding the future of its RCB stake. The company is reportedly in early talks with financial advisers to assess the feasibility of selling either a portion or the entirety of its ownership. The potential valuation being discussed is as high as $2 billion, a figure that reflects both RCB’s recent on-field success and the overall surge in IPL franchise values.
No definitive decision has been made yet, and Diageo may still choose to retain its stake if it deems it strategically beneficial. However, the possibility of a sale has already generated significant buzz in both the sports and business communities, with speculation about who might step in as new investors or owners.
Regulatory and Market Dynamics
A key factor influencing Diageo’s deliberations is the increasing scrutiny from Indian regulators regarding the association of alcohol brands with sports teams and events. The Indian health ministry has been vocal about curbing indirect advertising of alcoholic beverages, particularly in cricket, which enjoys massive viewership across the country. This regulatory environment has made it more challenging for companies like Diageo to leverage sports sponsorships as a marketing tool, thereby impacting the strategic value of assets like RCB.
At the same time, the IPL’s commercial appeal has never been higher. The league’s global audience, massive advertising revenues, and star-studded line-ups have made team ownership a highly coveted asset. RCB’s recent IPL championship win has only amplified its attractiveness to potential buyers, making this an opportune moment for Diageo to consider a profitable exit.
RCB: A Brief History and Its Rise to Glory
Royal Challengers Bengaluru was founded in 2008 as one of the original IPL franchises. Initially owned by Indian businessman Vijay Mallya, the team quickly became one of the most popular and widely followed franchises in the league, thanks in large part to its charismatic leadership and a roster of international cricket stars, including the legendary Virat Kohli.
Despite boasting a strong fan base and several high-profile players over the years, RCB had long been known as the “underachievers” of the IPL, often coming close to glory but falling short at crucial moments. That narrative changed dramatically in 2025 when RCB clinched their first-ever IPL title, ending years of heartbreak for their loyal supporters and catapulting the franchise into a new era of success.
What Lies Ahead?
The potential sale of RCB by Diageo could mark a significant turning point in the IPL’s business landscape. If the franchise is indeed valued at $2 billion or more, it would set a new benchmark for sports team valuations in India and attract a fresh wave of investors eager to capitalize on the league’s growth.
For RCB, a change in ownership could bring new strategies, investments, and ambitions, further strengthening the team’s position both on and off the field. For Diageo, the move could free up capital to focus on its core beverage business and navigate the evolving regulatory environment more effectively.
Opinion
As Diageo Plc explores its options regarding the Royal Challengers Bengaluru, the story underscores the dynamic interplay between sports, business, and regulation in today’s global market. Whether Diageo stays or goes, RCB’s journey from perennial runners-up to IPL champions ensures that the franchise remains a central figure in the ever-evolving saga of Indian cricket.