United Spirits Limited (USL), the Indian arm of global liquor major Diageo, has denied recent media reports suggesting it is considering a stake sale in Indian Premier League (IPL) franchise Royal Challengers Bengaluru (RCB).
In a filing with the Bombay Stock Exchange (BSE) on Monday, the company stated that no such transaction is currently being pursued. “The Company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussions,” said Mital Sanghvi, Company Secretary at USL, responding to a BSE query. The clarification follows a Bloomberg report claiming that Diageo was exploring the possibility of selling part or all of its stake in RCB, with a potential valuation of up to $2 billion. The report also mentioned that Diageo had initiated preliminary talks with advisers regarding the move.
The speculation gained traction shortly after RCB secured their first IPL title in 18 years, a win that significantly boosted the franchise’s brand value. However, the celebrations were marred by a tragic incident the next day. During a victory parade outside the M. Chinnaswamy Stadium in Bengaluru, a stampede occurred due to overcrowding and inadequate crowd management, resulting in the deaths of 11 people. The incident has since led to legal proceedings against multiple parties involved in organising the event.
A criminal case has been filed, naming RCB, event management firm DNA Entertainment Networks, and the Karnataka State Cricket Association (KSCA). Karnataka’s Chief Minister reportedly directed the arrest of several officials, including RCB executive Nikhil Sosale, who was detained at Bengaluru airport. During a hearing in the Karnataka High Court, RCB’s legal counsel argued that the arrest was unlawful and politically driven. RCB was initially owned by Vijay Mallya and came under Diageo’s control in 2016 following Mallya’s exit from United Spirits. While daily operations remain with USL, Diageo retains strategic control of the franchise. The reports around a potential stake sale also come at a time when the Union Health Ministry is increasing pressure on alcohol brands to curb indirect advertising, particularly during high-profile events like the IPL.ts like the IPL.