With top-tier IPL staff valuations now starting from $1.5–2 billion for franchises like Chennai Tremendous Kings and Mumbai Indians, and amid rising political and reputational dangers, market watchers imagine Diageo might even see this as an opportune second to monetise RCB’s peak model worth.
Mint reported in January that the RCB franchise had seen an 87% rise in model worth for the reason that IPL’s inception, with a 67% bounce within the final 12 months alone to $117 million (roughly ₹1,000 crore). Diageo had additionally made early strikes in ladies’s cricket, buying the RCB ladies’s staff for ₹901 crore in 2023 and seeing them clinch the Ladies’s Premier League title in 2024—signalling broader ambitions in sports activities and leisure even because it pivots globally towards core liquor investments.
In a regulatory submitting with the BSE, United Spirits mentioned the stories had been speculative and there have been no discussions at the moment underway. Nonetheless, the market circumstances—and RCB’s model momentum—have stored hypothesis alive.
Why Diageo may be trying to promote stake in Royal Challengers Bengaluru?
The transfer seems pushed by a mix of economic timing, model technique, and danger mitigation.
The title win has seemingly pushed RCB’s valuation to a brand new excessive, giving Diageo a chance to capitalise. A partial stake sale might liberate capital for its mainstay spirits enterprise, moderately than non-core cricket, an asset acquired in 2016 from Vijay Mallya, who had initially paid ₹476 crore in 2008.
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However reputational dangers might also be weighing on the choice. Latest controversies, together with arrests of RCB officers after the current stampede, and rising political scrutiny, have drawn uncomfortable consideration. The corporate might also be assessing the uncertainty round Virat Kohli’s future and the prospect of tighter regulation on alcohol-linked branding. Taken collectively, these components might make this not only a strategic second, however a needed one, for a partial exit.
Will or not it’s a full exit from IPL?
A whole exit from considered one of India’s most high-profile sports activities belongings could be a strategic anomaly.
Consultants Mint spoke to estimate RCB’s staff valuation at round ₹10,000 crore, however a full sale appears unlikely. Most level to a partial stake sale, just like Torrent Investments’ 67% acquisition of Gujarat Titans from CVC Capital Companions. JSW’s 50% stake in Delhi Capitals, acquired from GMR in 2018, adopted a comparable mannequin.
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Word that staff valuation displays a franchise’s monetary value—together with revenues, belongings, and future money flows—whereas model worth is derived from intangibles like repute, fan loyalty, and cultural affect. The 2 typically transfer in tandem however are usually not the identical.
Did current occasions push Diageo to contemplate promoting now?
Sure. RCB’s maiden title win has seemingly pushed the franchise’s model worth to a brand new excessive, making this a robust monetisation window.
Holding a smaller stake nonetheless provides Diageo entry to a preferred tradition asset—beneficial in a market the place liquor promoting is essentially restricted. However there’s additionally a extra severe growth: the stampede at RCB’s post-win celebration in Bengaluru, which left 11 individuals useless.
Whereas circuitously the franchise’s fault, the incident might have raised crimson flags at Diageo’s international headquarters. For a consumer-facing multinational, such occasions can weigh on model worth.
What might Diageo do with the proceeds?
Streamline. Liquor gross sales are going through margin strain globally, significantly in mature markets such because the US.
Diageo has been on a strategic clean-up, exiting or lowering stakes in non-core ventures, and doubling down on premium spirits. The RCB stake sale might liberate capital to put money into core liquor manufacturers, broaden bottling operations, or speed up premiumisation in development markets like India and Southeast Asia.
What occurs to RCB now?
Little or no within the brief time period. The franchise will proceed operations as-is, with staff administration, model sponsorships, and cricketing technique anticipated to stay unchanged.
Nevertheless, if a brand new investor comes on board, whether or not a personal fairness agency or strategic associate, there could also be adjustments in how RCB monetises its fanbase, drives digital engagement, or expands into merchandising and low season content material.
Might this shift how IPL groups are owned in future?
If the deal goes by way of, it will underscore the shift of IPL groups from promoter-led ventures to institutionalised sports activities companies.
CVC Capital’s sale of a stake in Gujarat Titans to Torrent Group—valued at ₹7,500 crore—adopted an identical path. Globally, leagues such because the NFL, NBA, and Premier League already see promoter teams and personal capital co-own franchises as monetary belongings.
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With IPL staff values crossing a billion {dollars}, house owners are more and more looking for capital to scale through expertise, merchandising, international outreach, and fan engagement. A partial RCB sale might form how different groups handle valuation highs, model danger, and long-term technique—with out totally exiting.
This story has been up to date to incorporate United Spirits’ assertion denying stories of a stake sale in RCB.
