SALES CONUNDRUM
RCB are the defending champions of the IPL, having secured their first title in 2025. © Getty
Currently, two IPL franchises are seeking new investors, with Royal Challengers Bengaluru (RCB) in the spotlight. Alongside RCB, another franchise is reportedly considering selling a stake, likely a minority share. As the expenses of maintaining an IPL team escalate, the franchise management has been looking for investment opportunities for some time.
RCB’s search for buyers is particularly noteworthy, with six parties showing interest if Diageo Great Britain, the company’s parent organization, decides to sell. However, uncertainty remains among Indian investors regarding the sale’s finalization.
There is speculation that the British liquor company might withdraw from the sale at the last moment. Shareholders are reportedly not in favor of continuing with an IPL team, which they see as outside their main business scope.
Several parties from India and the U.S. have engaged in discussions with Diageo management. Among them are Adar Poonawalla of Serum Institute and Parth Jindal of the JSW Group, along with the Adani Group and a prominent Delhi-based tycoon interested in multiple sectors. Additionally, two private equity firms from the U.S. are considering their options.
The valuation of RCB could play a decisive role in the potential sale, with Diageo reportedly valuing the franchise at $2 billion. Opinions differ on whether an IPL franchise can be valued that highly, particularly as the media rights for the competition are expected to change significantly in the next bidding cycle.
Diageo has reportedly retained two private banks, including Citi, to advise on the sale, but it remains unclear if the deal will proceed due to internal opposition. Additionally, uncertainties surrounding the tragic incident at M. Chinnaswamy Stadium and its subsequent impacts complicate matters for any prospective buyers. Clarity on the sale is anticipated soon.
© Cricbuzz
