RCB on Sale: Why Diageo is exiting Bengaluru-based franchise after IPL win

Barely six months after ending a 17-year wait for their first Indian Premier League (IPL) title, Royal Challengers Bengaluru (RCB) have been put up for sale by their parent company, Diageo.

The UK-based spirits giant confirmed the move in a filing to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Wednesday, announcing a “Strategic Review of Investment” in Royal Challengers Sports Pvt Ltd (RCSPL), which owns both the men’s IPL and the women’s WPL franchises. The process, according to Diageo, is expected to be completed by March 31, 2026.

Why Diageo is selling RCB

Diageo’s decision to sell RCB, despite the franchise’s long-awaited title win, comes against the backdrop of a larger strategic realignment within the company. Industry analysts suggest that the beverage major intends to focus on its core alcohol business and divest from non-core sports assets.

The move also follows the stampede incident that occurred during RCB’s title celebrations at Bengaluru’s M Chinnaswamy Stadium earlier this year. The mishap, which left several fans injured, reportedly prompted concerns within Diageo about reputational risks and potential legal liabilities.

RCB became part of Diageo’s portfolio in 2015 after it took control of Vijay Mallya’s United Breweries Group and later became the sole owner of the franchise in 2016. Since then, the company has faced consistent questions about its continued involvement in cricket amid regulatory pressures on alcohol advertising.

When will the sale process be completed

According to Diageo’s disclosure, the sale process is expected to conclude by March 31, 2026, providing a two-year window for due diligence, negotiations, and regulatory approvals.

The Board of Control for Cricket in India (BCCI) and the IPL Governing Council have already been informed of the development.

Analysts believe that while the formal change of ownership might only take place after the completion of the IPL season, negotiations with potential buyers are likely to intensify in 2025. The timing also ensures that RCB can operate uninterrupted in upcoming seasons while maintaining its commercial commitments.

RCB’s brand value remains among IPL’s highest

Despite its mixed on-field history, RCB has consistently ranked among the IPL’s most valuable franchises. A recent valuation by global investment bank Houlihan Lokey pegged RCB’s brand value at $269 million, making it one of the top three teams in the league.

This enduring appeal stems from the team’s massive fan following and the global popularity of long-time icon Virat Kohli, who has been central to RCB’s brand identity since the inception of the IPL. The franchise’s success in both the men’s and women’s formats has further bolstered its market standing, making it an attractive prospect for potential investors.

Preparing for retentions and auctions

The sale announcement comes at a crucial time for RCB’s cricket operations. All IPL teams must finalise their player retentions by November 15, followed by the men’s auction later this year. Similarly, preparations are underway for the WPL auction, with the women’s team—fresh off its championship win—looking to retain its core players.

Despite the impending ownership transition, RCB’s management is expected to continue day-to-day operations without disruption. Insiders say Diageo wants to ensure a smooth handover and avoid distractions that could impact team performance or fan sentiment.

“The current leadership remains fully committed to preparing competitive squads for both leagues,” an industry source familiar with the situation said, adding that any ownership change is unlikely to affect immediate cricketing decisions.