Diageo mull $2bn sale of IPL side Royal Challengers Bengaluru
Beverage giant Diageo is mulling a potential sale of its Indian Premier League (IPL) side Royal Challengers Bengaluru.
The reigning IPL champions – whose roster this year featured the likes of England’s Phil Salt, Liam Livingstone and Jacob Bethell, as well as Australians Tim David and Josh Hazlewood – are owned by United Spirits, a subsidiary of British-based Diageo.
Indian legend Virat Kohli also features in the side, alongside Jitesh Sharma and Bhuvneshwar Kumar.
Bloomberg reports that the alcoholic beverage titan could see a valuation of around $2bn for the franchise, though no final decision has been made.
Though the IPL collectively is worth billions there are some potential obstacles which could derail the rise of the franchise competition in India with the country’s health ministry pushing for a number of sponsorship bans relating to alcohol and tobacco.
IPL sale for Diageo
CVC sold over two thirds of its Gujarat Titans franchise, which was purchased for $647m in 2021, earlier this year.
That deal saw 67 per cent of the franchise sell for $575m, with the buyers having the chance at purchasing the remaining nearly one-third at a later date.
The valuation for Royal Challengers Bengaluru, then, would likely be more than double that.
The side won their first IPL title this year and the team’s value is likely at an all-time high.
Royal Challengers Bengaluru’s earliest iteration came in 2028 when former United Spirits chairman Vijay Mallya successfully bid for a franchise ahead of the Indian Premier League’s first season.
Diageo began to purchase stakes in United Spirits over a decade ago – acquiring 54 per cent in 2012. The move became a major one for the British-based brand.
The BCCI – which runs cricket in India – is looking at expanding the 10-team IPL season further in 2028 but there are currently no plans to add in further franchises.
Some reports state that United Spirits “is not pursuing any such discussions”.