What’s Selling?
Reports surfaced around June 10, 2025, suggesting Diageo Plc, through its Indian arm United Spirits Ltd., is exploring options to sell part or all of its stake in the IPL’s Royal Challengers Bengaluru. Bloomberg and Mint value this potential divestment at up to $2 billion (≈ ₹17,000 crore).
Why ₹17,000 Crore?
- RCB’s first-ever IPL title in 2025—after 18 years of near-misses—has heightened the franchise’s valuation.
- Other IPL franchises, like LSG (
₹7,090 crore) and Gujarat Titans (₹5,625 crore), traded significantly lower. The ₹17k cr estimate marks a massive increase in market expectations. - This would be IPL’s largest-ever team valuation—more than double the price of recent entrants.
Motives Behind a Possible Sale
- Strategic Portfolio Rebalancing: Diageo aims to streamline operations, targeting $3 billion free cash flow by 2026 amid weakening global alcohol demand.
- Advertising Environment: India’s increasing pressure to curb alcohol promotion—especially in sports—could diminish future returns from this ownership.
Official Rebuttals
- United Spirits Ltd. called the reports “speculative,” clarifying no sale discussions are ongoing.
- Diageo India sent an official statement to the BSE, affirming the rumour is “entirely speculative” and there is no plan to divest.
- The Karnataka Deputy CM humorously dismissed acquisition rumours: “Why do I need RCB? I don’t even drink Royal Challenge”.
Market Ripples
- Following the stake sale buzz, United Spirits’ share price climbed ~3–3.3%, rallying to a five-month high of ₹1,644 on June 10.
- Investor sentiment is heating up around RCB’s blockbuster profile and soaring team value post-championship.
So, Is it Really Up for Sale?
- Timeline: As of June 11, 2025, Diageo and USL maintain that discussions are untrue and no active sale plans exist.
- Outlook: A potential sale could reshape IPL landscape but remains speculative. Stakeholders—Fans, investors, and corporate analysts—should closely monitor future filings from Diageo or United Spirits for concrete developments.
Conclusion
The ₹17,000 crore valuation talk has thrust RCB into the limelight—not just for its on-field success but also its commercial heft. While the valuation headline grabs attention, the key lies in confirmed action. For now, Diageo and USL have effectively shut down the speculation.
But if ever it happens, a sale at this scale could set a new benchmark for IPL franchises—and underscore how sports assets are evolving into major investments.
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