Less than six months after winning their maiden Indian Premier League title after a wait of 18 years, the Royal Challengers Bengaluru (RCB) have been put on sale. While there have been talks about the franchise’s ownership, the confirmation came on Wednesday evening with Diageo revealing that they initiated the process to sell the IPL as well as the Women’s Premier League (WPL) team, which is three years old and has a title to its name.
In a communication to the Bombay Stock Exchange (BSE) and National Stock Exchange on Wednesday, the UK-based company called it a ‘Strategic Review of the Investment Royal Challengers Sports Pvt Ltd (RCSPL),’ a wholly owned company of United Spirits Ltd, the Indian Subsidiary of Diageo.
The letter further stated: “The USL is initiating a strategic review of the investment in its wholly owned subsidiary, RCSPL. RCSPL’s business comprises ownership of the Royal Challengers Bengaluru (RCB) franchise team that participates in the men’s Indian Premier League (IPL) and Women’s Premier League (WPL) cricket tournaments hosted by the Board of Control for Cricket in India (BCCI) annually.”
It is understood that the Board of Control for Cricket in India and the IPL Governing Council have been made aware of the development. In the disclosure, Diageo further said, “It is expected the process will conclude by March 31, 2026.”
The decision comes at a time when the IPL franchises have to finalise their retentions by November 15. With the auctions also set to follow, any potential buyer will have to make do with a squad that is being handpicked by the current owners, Diageo. According to industry analysts, there is a view that even if the sale process ends by March 31, the official change of guard could happen at the conclusion of the IPL, depending on the negotiations.
When Vijay Mallya’s UB Group bought it for $111.6 million, RCB was the second-most expensive franchise after the Mumbai Indians. In 2015, a year after Diageo took a controlling stake in the UB Group, the franchise came under the UK-based company’s control. In 2016, it became the sole owner of the franchise.
Though it didn’t win a title for 18 seasons, RCB’s brand value was always in the top three thanks to the presence of Virat Kohli. However, ever since the stampede during the title celebrations at the M Chinnaswamy Stadium earlier this year, there have been murmurs in the IPL corridors that the franchise could be up for sale to avoid legal complications. With the owners mostly staying away and Kohli too in the twilight of his career, the decision to move away seems to have been taken after proper consideration.
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According to a study by Houlihan Lokey, Inc, the brand value of RCB was pegged at $269 million.
