British liquor giant Diageo is considering a sale of its stake in IPL 2025 champions Royal Challengers Bengaluru (RCB), according to people familiar with the matter. The company could sell part or even all of its ownership in the team and may value the franchise at up to $2 billion.
Talks in Early Stages
Diageo, which owns RCB through its Indian arm United Spirits Ltd., has reportedly held discussions with potential advisers. So far, no final decision has been made. Sources say the company could still decide to hold on to the team.
A Diageo spokesperson declined to comment, and United Spirits has not yet responded to media queries.
Health Ministry Pressure on Alcohol Promotions
The timing of this possible sale is important. India’s health ministry is pushing for a ban on the promotion of alcohol and tobacco brands in the IPL. This includes stopping indirect promotions through soda or other products using cricketers. While direct liquor ads are already banned in India, companies like Diageo have still been advertising non-alcoholic versions or mixers featuring top sports stars.
RCB’s Journey from Mallya to Diageo
RCB is one of the founding teams of the IPL. It was originally owned by businessman Vijay Mallya, whose Kingfisher Airlines went bankrupt in 2012. Diageo took over ownership after buying Mallya’s liquor business. This year, RCB finally won their maiden IPL title, adding to their commercial value. The team’s biggest star, Virat Kohli, has a massive global fan following and is a major face of the franchise.
IPL Teams Are Now Hot Property
The value of IPL franchises has surged in recent years. IPL is now one of the fastest-growing sports leagues in the world, drawing comparisons with the NFL and the English Premier League in terms of revenue and viewership.
With IPL matches attracting hundreds of millions of viewers, owning a team has become a high-demand investment. A sale of RCB could set a new benchmark for franchise valuations.
Diageo’s Global Strategy
In the US Diageo’s largest market sales of premium liquor have been hit by tariffs and a consumer slowdown. Selling RCB could help the company raise capital as it looks to focus on its core business and streamline global operations.
For now, RCB fans don’t need to worry about the team’s future on the field. But behind the scenes, Diageo’s decision could lead to new ownership and a fresh direction for one of IPL’s most followed franchises. If the sale happens, it would be one of the biggest deals in Indian sports history.
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