The dust has still not settled on the agreement between the United Spirits (Diageo) and the Aditya Birla-Times Group consortium regarding the acquisition of the Indian Premier League (IPL) franchise Royal Challengers Bengaluru (RCB). But IPL’s founding chairman Lalit Modi feels the team has been undervalued.
Modi, the former IPL Commissioner whose vision birthed the league in 2008, took to X to deliver a critique of the $1.78 billion (₹16,706 crore) valuation. According to him, RCB is a “Unicorn” being sold at a discount and the current closed-door negotiations are leaving billions of rupees on the table.
The $2 billion benchmark
While the $1.78 billion figure stands as the highest price ever paid for an IPL franchise, surpassing the $1.63 billion bid for Rajasthan Royals just hours prior to the RCB deal, Modi insists the market appetite, particularly from the United States, is far greater.
“My advise to management of @RCBTweets and @citibank is – YOU HAVE A UNICORN,” Modi posted. “Scrap the one to one negotiation and do an open auction with proof of funds in 48 hours with a two billion bench mark. Like I did for ipl deals.”
Modi claimed that his phone has been “ringing off the hook” with interest from high-profile US-based private equity funds asking how to acquire a stake in the franchise. By his estimation, a truly transparent, competitive bidding process would easily breach the $2 billion (₹18,800 crore) mark.
Although I have zero say who sells what to whom in @IPL I have had so many us based funds calling me to ask how can we get in for a piece. My advise to management of @RCBTweets and @ciitibank is – YOU HAVE A UNICORN. Scrap the one to one negotiation and do an open auction with…
— Lalit Kumar Modi (@LalitKModi) March 24, 2026
Modi’s 48-hour challenge to Citibank
The 62-year-old offered a roadmap for the franchise’s financial advisors, Citibank. He proposed a bidding for the franchise much like how players are auctioned. He demanded that interested parties provide-
Fixed Term Sheets: No protracted negotiations, bidders simply fill in the number.
Live Bidding: Opening bids in front of all competitors to drive a frenzy price.
Is there merit to the claim?
As the reigning IPL and WPL champions, and with a digital engagement footprint that rivals European football giants like Real Madrid, it is true that RCB will be a high valuation team but to put a number is difficult even for experts.
Modi’s argument is that if these giants are willing to pay $1.78 billion, a global open auction might have pushed them or even rival fund even higher.
Deal still requires NOCs
Modi’s public intervention puts the BCCI and the Competition Commission of India (CCI) in a curious position. While the Birla-led consortium has already signed the agreement, the deal still requires regulatory NOCs (No Objection Certificates).
If a rival US fund were to officially present a $2 billion unsolicited bid following Modi’s post, it could lead to intense shareholder pressure on Diageo to explain why they opted for a private sale over an open market discovery.