Royal Challengers Bangalore’s IPL Win Has Boosted Value as Investors Begin to Cash in Returns

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Royal Challengers Bangalore (RCB), the winner of IPL, is now the center of a high-stakes sale, with a potential billion-dollar valuation on the table. The major ownership deal is expected to conclude by March 2026. Sports analysts feel this could become one of the biggest transactions in IPL history.

RCB on Sale

Reports suggest that Diageo, parent company of United Spirits Limited, is seeking a valuation of around $2 billion for RCB. The sports business accounted for 8.3 percent of the company's total profit in the last financial year ending March 31, 2025.

In a communication to the Bombay Stock Exchange (BSE), Diageo called it a 'Strategic Review of the Investment Royal Challengers Sports Pvt Ltd (RCSPL),' a wholly owned company of United Spirits Ltd, the Indian subsidiary of Diageo.

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"United Spirits Ltd. (USL) is initiating a strategic review of the investment in its wholly owned subsidiary, RCSPL. RCSPL's business comprises ownership of the Royal Challengers Bengaluru (RCB) franchise teams that participate in the Men's Indian Premier League (IPL) and Women's Premier League (WPL) cricket tournaments hosted by the Board of Control for Cricket in India (BCCI) annually," the company stated in the disclosure.

The Reason

Praveen Someshwar, Managing Director & CEO, United Spirits Ltd, commented: "RCSPL has been a valuable and strategic asset for USL; however, it’s non-core to our alcobev business. This step reinforces USL's & Diageo's commitment to continue reviewing its India enterprise portfolio to enable sustained delivery of long-term value to all its stakeholders, while keeping RCSPL's best interest in mind.”

Vijay Mallya, then chairman of USL, bought the franchise for USD 111.6 million in 2007, before he stepped down as director in 2016, with Diageo becoming the sole owner of the company.

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Expected Bidders

According to reports, several major groups have already shown interest in buying RCB. The Adani Group, the JSW Group, Adar Poonawalla of the Serum Institute of India, and Ravi Jaipuria of the Devyani International Group are the frontrunners for buying the franchise.

Future of Virat Kohli in RCB

Virat Kohli has been the face of the franchise since its inception in 2008. The Indian star has said on several occasions that he will only leave the franchise when he retires.

Kohli’s contract as a player is with the franchise itself and not with Diageo, which means a change in ownership should not affect his place in the team. 

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However, any new ownership group could bring a different management and direction for the team, which may or may not align with Kohli, and he might seek a change.

The current owners of the franchise will be seen bidding for players and participating in the WPL auction on November 27.