RCB Shake-Up: Diageo Plans to Sell Iconic IPL Franchise

The well-liked Indian Premier League (IPL) team Royal Challengers Bengaluru (RCB) might soon have a new owner.

According to a media report, Diageo Plc, the British corporation that controls RCB through United Spirits Ltd., its Indian subsidiary, is looking into selling all or a portion of its franchise.

A person cited in the report claim that Diageo has begun preliminary discussions with advisors and is amenable to a variety of options, including a full sale.

This development comes soon after RCB registered its first IPL trophy in eighteen years (Winners of IPL 2025). Although the business hasn't decided yet, it may consider paying up to $2 billion for the club. No concrete action has been taken thus far, and these conversations are still confidential.

New Business Strategy by Diageo Plc

According to the report, Diageo might be considering its ownership's future as part of a broader plan to streamline its international operations. Diageo has experienced pressure on spirits sales in the US, its largest market, as a result of tariffs and a decline in consumer demand for high-end alcohol goods.

RCB may be able to raise money and return its attention to its main business by selling a portion of the corporation. Growing government pressure could be another factor.

The health ministry has been advocating for the prohibition of the indirect promotion of tobacco and alcohol goods during sporting events such as the Indian Premier League.

Companies like Diageo have used famous cricket players to market soft drink brands like soda, despite the fact that direct advertisements for such items are already prohibited.

Companies who utilise cricket to reach customers may see a decline in brand visibility if more stringent regulations are implemented.

The Legacy of RCB and the IPL

Vijay Mallya, a prominent figure in India's spirits sector and the owner of Kingfisher Airlines at the time, first purchased RCB. Following the demise of Mallya's economic empire, Diageo acquired United Spirits, which allowed them to take over RCB.

 Thanks in large part to Kohli and other well-known players like AB de Villiers and Faf du Plessis, RCB has grown into one of the most talked-about IPL teams throughout the years. The IPL is more than simply a cricket competition anymore.

With a large global audience and significant advertising interest, it has grown to become one of the most valuable sports leagues in the world. It is ideal for digital and broadcast platforms due to its three-hour match format.

A hefty price for RCB's sale might establish a new benchmark for future IPL franchise valuations. According to reports, the IPL is on par with major sports leagues such as the English Premier League in the UK and the National Football League (NFL) in the US.