With top-tier IPL team valuations now ranging from $1.5–2 billion for franchises like Chennai Super Kings and Mumbai Indians, and amid rising political and reputational risks, market watchers believe Diageo may see this as an opportune moment to monetise RCB’s peak brand value.
Mint reported in January that the RCB franchise had seen an 87% rise in brand value since the IPL’s inception, with a 67% jump in the last year alone to $117 million (approximately ₹1,000 crore). Diageo had also made early moves in women’s cricket, acquiring the RCB women’s team for ₹901 crore in 2023 and seeing them clinch the Women’s Premier League title in 2024—signalling broader ambitions in sports and entertainment even as it pivots globally toward core liquor investments.
In a regulatory filing with the BSE, United Spirits said the reports were speculative and there were no discussions currently underway. Still, the market conditions—and RCB’s brand momentum—have kept speculation alive.
Why Diageo might be looking to sell stake in Royal Challengers Bengaluru?
The move appears driven by a blend of financial timing, brand strategy, and risk mitigation.
The title win has likely pushed RCB’s valuation to a new high, giving Diageo an opportunity to capitalise. A partial stake sale could free up capital for its mainstay spirits business, rather than non-core cricket, an asset acquired in 2016 from Vijay Mallya, who had originally paid ₹476 crore in 2008.
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But reputational risks may also be weighing on the decision. Recent controversies, including arrests of RCB officials after the recent stampede, and growing political scrutiny, have drawn uncomfortable attention. The company may also be assessing the uncertainty around Virat Kohli’s future and the prospect of tighter regulation on alcohol-linked branding. Taken together, these factors could make this not just a strategic moment, but a necessary one, for a partial exit.
Will it be a full exit from IPL?
A complete exit from one of India’s most high-profile sports assets would be a strategic anomaly.
Experts Mint spoke to estimate RCB’s team valuation at around ₹10,000 crore, but a full sale seems unlikely. Most point to a partial stake sale, similar to Torrent Investments’ 67% acquisition of Gujarat Titans from CVC Capital Partners. JSW’s 50% stake in Delhi Capitals, acquired from GMR in 2018, followed a comparable model.
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Note that team valuation reflects a franchise’s financial worth—including revenues, assets, and future cash flows—while brand value is derived from intangibles like reputation, fan loyalty, and cultural impact. The two often move in tandem but are not the same.
Did recent events push Diageo to consider selling now?
Yes. RCB’s maiden title win has likely pushed the franchise’s brand value to a new high, making this a strong monetisation window.
Holding a smaller stake still gives Diageo access to a popular culture asset—valuable in a market where liquor advertising is largely restricted. But there’s also a more serious development: the stampede at RCB’s post-win celebration in Bengaluru, which left 11 people dead.
While not directly the franchise’s fault, the incident may have raised red flags at Diageo’s global headquarters. For a consumer-facing multinational, such events can weigh on brand value.
What could Diageo do with the proceeds?
Streamline. Liquor sales are facing margin pressure globally, particularly in mature markets such as the US.
Diageo has been on a strategic clean-up, exiting or reducing stakes in non-core ventures, and doubling down on premium spirits. The RCB stake sale could free up capital to invest in core liquor brands, expand bottling operations, or accelerate premiumisation in growth markets like India and Southeast Asia.
What happens to RCB now?
Very little in the short term. The franchise will continue operations as-is, with team management, brand sponsorships, and cricketing strategy expected to remain unchanged.
However, if a new investor comes on board, whether a private equity firm or strategic partner, there may be changes in how RCB monetises its fanbase, drives digital engagement, or expands into merchandising and off-season content.
Could this shift how IPL teams are owned in future?
If the deal goes through, it would underscore the shift of IPL teams from promoter-led ventures to institutionalised sports businesses.
CVC Capital’s sale of a stake in Gujarat Titans to Torrent Group—valued at ₹7,500 crore—followed a similar path. Globally, leagues such as the NFL, NBA, and Premier League already see promoter groups and private capital co-own franchises as financial assets.
Also read | RCB’s game plan: How a title-starved team is reshaping the sports business
With IPL team values crossing a billion dollars, owners are increasingly seeking capital to scale via technology, merchandising, global outreach, and fan engagement. A partial RCB sale could shape how other teams manage valuation highs, brand risk, and long-term strategy—without fully exiting.
This story has been updated to include United Spirits’ statement denying reports of a stake sale in RCB.
