Royal Challengers Bengaluru‘s (RCB) current owner in the IPL and WPL has been conducting a “strategic review” of its investment in the team through the parent company Royal Challengers Sports Private Limited (RCSPL), as per an ESPN report.
The sports outlet cited a Wednesday filing with the Securities and Exchange Board of India (SEBI), noting that the alcoholic beverage company was looking to divest its stake in the sports franchise.
With Diageo itself announced the RCB sale development, the UK-based company called it a “Strategic Review of the Investment in Royal Challengers Sports Pvt. Ltd. (RCSPL)” in a disclosure shared with the Bombay Stock Exchange (BSE) on Wednesday. The filing was done under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), as per Cricbuzz.
RCB owner divesting its stake
“RCSPL has been a valuable and strategic asset for USL; however, it is non-core to our alcobev (alcohol and beverages) business,” highlighted Praveen Someshwar, Managing Director and CEO of United Spirits (USL), in the filing. RCSPL is an Indian subsidiary of USL, which is owned by Diageo.
“This step reinforces USL and Diageo’s commitment to reviewing our India portfolio to ensure sustained long-term value for stakeholders, while keeping RCSPL’s best interests in mind.”
According to a previous SEBI filing, the company had originally denied that they were planning to sell RCB. USL’s company secretary Mital Sanghvi had slammed any such claims as “speculative.” However, now that Diageo’s stance has flipped around, casting a new light on the franchise’s future.
New RCB owner soon?
As per the new filing, Diageo’s new review surrounding the sale process is expected to be completed by the end of India’s FY 2025-26, i.e. March 31, 2026. Cricbuzz cited sources familiar with the matter, noting that USL and Diageo were close to inking a deal, which is why the date had already been announced.
Parties potentially interested in taking on the responsibility include a US-based private investment company, the Adani Group, JSW Group’s Jindals, Adar Poonawalla of the Serum Institute of India and Ravi Jaipuria of the Devyani International Group, according to the sports outlet’s previous report.
Diageo’s ownership particularly slipped into hot water after fatal June 4 stampede outside the Chinnaswamy Stadium in Bengaluru, which claimed 11 people’s lives, just a dauy after RCB clinched its first-ever IPL title this year. Despite prior dismissals, the latest disclosure now proves that the company was prompted to shift its priorities away from RCB.
Back in September, former IPL chairman Lalit Modi also fanned the then-speculative fire on social media. “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,” he wrote on X, adding that RCB could “set a new record valuation.”
Financial Express had previously reached out to Diageo to address the chatter. However, the company declined to respond at the time, saying that it did not comment on market rumours or speculation.