SALES CONUNDRUM
RCB are the defending champions of the IPL, having secured their first title in 2025. © Getty
Two IPL franchises are currently seeking investors, with the Royal Challengers Bengaluru (RCB) already in the spotlight. Additionally, another franchise is rumored to be looking for a potential minority shareholder. Given the rising costs of running an IPL team, franchise management has been eager for investment for some time.
RC’s search for buyers is gaining attention, with reports indicating that not just one or two, but six interested parties are vying for a stake if Diageo Great Britain, the parent company of RCB, decides to sell. However, clarity on this front remains uncertain among Indian investors.
There’s a prevailing belief that the British liquor company might reconsider its decision at the last minute, despite indications that some shareholders are dissatisfied with the involvement in an IPL team, which is deemed non-essential to the firm.
Reports suggest that several Indian and American entities have engaged with Diageo’s management. Some key figures include Adar Poonawala from Serum Institute and Parth Jindal from JSW Group. Interest is also shown by the Adani Group and a notable Delhi businessman with diverse interests, in addition to two U.S.-based private equity firms.
Adar Poonawala previously explored ownership opportunities in the IPL, with his father, Cyrus, having acquired an IPL team during the 2010 expansion. Adar recently stirred speculation by commenting on RCB’s valuation potential on social media. Meanwhile, the Jindal Group would have to sell its 50% stake in Delhi Capitals if it pursues RCB. Adani’s interest in IPL is established, having narrowly missed acquiring the Ahmedabad team in 2022.
Valuation will be a critical determinant in the potential sale. Diageo is reportedly valuing RCB at USD 2 billion, which has mixed opinions regarding its feasibility. The future media rights’ projection will heavily influence this, as competition for the upcoming bidding cycle is anticipated but may not see the same exponential growth as before.
Two private banks, including Citi, have been engaged by Diageo to offer sale advice. The success of the transaction remains uncertain, as internal discussions within Diageo reportedly lean against the sale. Additional complexities arise from unresolved incidents related to RCB and the ongoing status of their home ground, M. Chinnaswamy Stadium, which remains closed due to safety concerns. More clarity on the future of the franchise is expected soon.
© Cricbuzz
