Royal Challengers Bengaluru (RCB), fresh off their historic first Indian Premier League (IPL) title, may be headed for a change of ownership if social media speculation is to be believed. Former IPL chairman Lalit Modi claimed in a post on Monday that Diageo Plc, the current owner of the franchise through United Spirits Ltd. (USL), has taken a “final call” to sell.
“There have been a lot of rumours about the sale of an @IPL franchise, specifically @RCBTweets. Well, in the past, they have been denied. But it seems the owners have finally decided to take it off their balance sheet and sell it,” Modi wrote on X (formerly Twitter), adding that RCB could attract interest from global sovereign and private equity funds and “set a new record valuation.”
Financial Express reached out to Diageo for comment on the latest speculation, but the company declined to respond, stating it does not comment on market rumours or speculation
Not the first time
This isn’t the first time Diageo has been linked to a potential RCB exit. In June, Bloomberg reported that the liquor major had initiated preliminary talks with advisers to explore exit options, including a full sale, with valuations pegged as high as $2 billion.
USL swiftly denied those reports in a filing with the Bombay Stock Exchange. “The aforesaid media reports are speculative in nature and the company is not pursuing any such discussions,” said Mital Sanghvi, company secretary at USL.
The timing of such speculation has often coincided with milestones for the franchise. RCB’s maiden IPL title after 18 years hugely increased its brand value, but there was a tarnish to the glory when 11 people died and many others were injured in a stampede during a victory parade in Bengaluru. The tragedy led to legal action against RCB, its event management partner, and Karnataka State Cricket Association officials.
For Diageo, owning a cricket franchise has become increasingly complicated. The Union Health Ministry has stepped up scrutiny on indirect alcohol advertising, limiting visibility for liquor companies in sports sponsorships. A potential sale would allow Diageo to sidestep regulatory risk while cashing in on record IPL valuations.
RCB, originally owned by Vijay Mallya before USL and Diageo took control in 2016, has long been seen as one of the league’s most attractive assets thanks to its strong fan loyalty, social media following, and association with marquee players. Industry observers argue that a sale, if pursued, could set a benchmark floor price for future IPL franchise deals.
Unanswered questions
For now, Diageo has not issued a statement in response to Modi’s latest post. Given past denials, questions remain about whether this round of speculation will culminate in a concrete transaction or fizzle out like before.