United Spirits (USL), India’s leading liquor producer, has reportedly attributed approximately 16% of its net profit for the fiscal year 2023-24 to revenues generated by its Indian Premier League franchise Royal Challengers Bengaluru (RCB).
RCB’s revenue soared by 163%, reaching Rs 650 crore ($77.8 million) in 2023-24, up from Rs 247 crore the previous year, according to Economic Times, which accessed the latest annual report of the Indian subsidiary of Diageo Plc, the world’s largest distiller. The revenue upstick resulted in a net profit of Rs 222 crore for the IPL franchise, largely due to an increase in central rights income from the Board of Control for Cricket in India (BCCI). In contrast, the team had reported a net loss of Rs 15 crore the year prior.
Two years ago, RCB’s contribution to USL’s profit was merely 8%. The introduction of a women’s cricket team last year, which triumphed in its debut at the Women’s Premier League, also added to the financial success.
RCB’s revenue streams include central rights earnings from the BCCI, sponsorship income, and other commercial revenues from franchise rights. Additionally, apart from ticket sales revenue shared by the BCCI, the company benefits from play-off revenue when the team qualifies for extra matches based on league rankings.
