The $2 billion question: Why Diageo may sell RCB
As Diageo looks to cut costs and trim its portfolio, the RCB valuation shows that global consumer giants now see sport as an asset class rather than a marketing indulgence.
When the Royal Challengers Bengaluru (RCB) finally won their maiden Indian Premier League (IPL) title on June 3, it ended an 18-year wait. Less than a week later, it was in the news for a different reason.
Bloomberg, citing people familiar with the matter, reported that Diageo Plc, the British alcobev company that owns RCB through its Indian arm, United Spirits Limited (USL), was considering offers for the franchise. The asking price: about $2 billion (~Rs 17,000 crore).
RCB officials were in court that week seeking bail over the deadly crowd surge that marred celebrations of their maiden title win in Bengaluru. The leak shifted the attention from the courtroom to the boardroom.
USL moved quickly to deny the report. In an exchange filing dated June 10, the company stated that “aforesaid media reports are speculative in nature and it is not pursuing any such discussions.” The statement was brief and procedural, but the speculation continued.
Speculation swelled. JSW Sports (co-owner of the Delhi Capitals) was mentioned, followed by the Adani Group and even sovereign-capital names from Riyadh to Doha.
Praveen Someshwar, managing director and chief executive, Diageo India, set the cat among the pigeons when he told a TV channel mid-September that while RCB was an “exciting asset”, it had “nothing to do with our core business.”
A fortnight later, the same channel reported that Adar Poonawalla, chief executive of the Serum Institute of India, had expressed interest in buying the team. Poonawalla later wrote on X that “at the right valuation, @RCBTweets is a great team.” Former IPL commissioner Lalit Modi added to the swirl on social media, suggesting that Citi had been appointed as the banker. As the reports continued, Diageo India told exchanges on September 30 that it “does not respond to market speculation.”
Investment bankers The State of Play spoke to said the market was abuzz, but no mandate was visible. At the time of publishing, Diageo India did not respond to The State of Play's questionnaire.
RCB has never been stronger on the field (men’s champions in 2025, women’s champions in 2024), IPL cash flows are stable, and Diageo’s shareholders are demanding lower debt and stronger cash flow after a difficult few years. Whether or not Diageo sells, the reported $2 billion price shows how far IPL teams have moved beyond their original purpose as marketing vehicles.
