RCB Franchise Sale: Diageo Initiates Sale Process
Diageo, the owner of the Royal Challengers Bengaluru (RCB) teams in both the IPL and WPL, has officially initiated the process to sell the franchise. The update was confirmed through a disclosure made to the Bombay Stock Exchange (BSE) on Wednesday (November 5), marking a major development in Indian cricket’s franchise landscape.
According to the filing, Diageo has begun a “Strategic Review of the Investment in Royal Challengers Sports Pvt. Ltd. (RCSPL)”, the wholly owned subsidiary of United Spirits Ltd. (USL) that manages the RCB brand across IPL and WPL. The company has indicated that the sale process is already underway and is expected to be completed by March 31, 2026.
Diageo’s Official Filing Confirms the Sale Process
In its BSE disclosure, Diageo stated:
“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 teams that participate in the men’s Indian Premier League (IPL) and Women’s Premier League (WPL) hosted by the BCCI annually.”
The announcement was made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements.
Sale Driven by ‘Non-Core’ Business Alignment
USL Managing Director and CEO Praveen Someswar noted that while RCB has been a “valuable and strategic asset,” it remains outside Diageo’s core alcohol-beverage portfolio. The company has been under pressure from shareholders to streamline its investments and focus on core operations.
Full or Partial Stake Sale Possible
The language in the disclosure suggests Diageo may consider either a complete or partial divestment. Given the timeline provided — with the process expected to conclude by March 31, 2026 — industry sources believe Diageo may already be in advanced discussions with potential buyers.
Reports indicate several parties have shown interest in acquiring the RCB franchise.
Potential Buyers: Big Names in the Mix
According to Cricbuzz, multiple high-profile groups and individuals may be exploring bids, including:
- A private US-based investment firm
- Adani Group
- JSW Group (Jindals)
- Adar Poonawalla (Serum Institute of India)
- Ravi Jaipuria (Devyani International Group)
Sale Talks Accelerated After June Tragedy
The possibility of an RCB sale has been circulating since the June 4 stampede outside the Chinnaswamy Stadium, where 11 fans tragically lost their lives. The incident brought intense scrutiny on the franchise, adding further pressure on its ownership structure.
Merchant Bank Appointed to Oversee the Process
Diageo has reportedly engaged a merchant bank to manage the sale process, signalling the seriousness and scale of the transaction. With the deadline set and buyers lining up, RCB may witness one of the most significant ownership transitions in IPL history.
Frequently Asked Questions (FAQ)
Is the RCB franchise officially up for sale?
Yes. Diageo, the owner of Royal Challengers Bengaluru (RCB), has officially initiated the sale process as part of a strategic review of its investment in Royal Challengers Sports Pvt. Ltd. (RCSPL).
Who currently owns the RCB franchise?
The RCB franchise is owned by Royal Challengers Sports Pvt. Ltd. (RCSPL), a wholly owned subsidiary of United Spirits Limited (USL), which is controlled by Diageo.
When will the RCB sale process be completed?
According to Diageo’s disclosure to the Bombay Stock Exchange, the sale process is expected to be completed by March 31, 2026.
Why is Diageo selling the RCB franchise?
Diageo has stated that the RCB franchise is non-core to its alcobev (alcohol-beverage) business. The company is reviewing non-core investments to optimise long-term value and streamline its portfolio.
Who are the potential buyers for RCB?
Several major groups and investors are reportedly interested, including:
- A US-based private investment firm
- Adani Group
- JSW Group (Jindals)
- Adar Poonawalla (Serum Institute of India)
- Ravi Jaipuria (Devyani International Group)
What triggered renewed discussion about RCB’s ownership?
Apart from shareholder pressure to focus on core business, discussions intensified after the June 4 stampede outside Chinnaswamy Stadium, which led to increased scrutiny on franchise operations.
What is the selling price of the RCB franchise?
Diageo has not officially disclosed the expected selling price of the RCB franchise. However, industry experts estimate the valuation to be between ₹4,000 crore and ₹6,000 crore, depending on stake percentage, buyer interest, and league profitability. The final price will be confirmed once negotiations conclude by March 31, 2026.
