DIAGEO, the owner of the Indian Premier League (IPL) and Women’s Premier League (WPL) franchise Royal Challengers Bengaluru (RCB), has announced that it is undertaking a “strategic review” of its investment in the team through Royal Challengers Sports Private Limited (RCSPL), the entity that owns both the men’s and women’s sides. The move marks the first step towards a potential divestment of its stake in the franchise.
RCB has enjoyed two remarkable years, clinching the WPL title in 2024 and lifting their maiden IPL trophy this season after defeating Punjab Kings (PBKS) in the final.
According to ESPNCricinfo, Diageo stated in a filing with the Securities and Exchange Board of India (SEBI) on Wednesday that the review of its investment in RCSPL is expected to be completed by 31 March 2026.
“RCSPL has been a valuable and strategic asset for USL; however, it is non-core to our alcobev (alcohol and beverages) business,” said United Spirits managing director and CEO Praveen Someshwar, in the SEBI filing.
The decision comes as Diageo faces mounting pressure in its core global drinks business. In a previous SEBI filing in June this year, the company had dismissed reports of an RCB sale, calling them “speculative.” However, speculation has grown since the stampede outside Bengaluru’s M Chinnaswamy Stadium during the team’s victory celebrations earlier this year, shortly after their IPL triumph.
When the IPL was launched in 2008, RCB was the league’s second-most expensive franchise. Vijay Mallya, then chairman of United Spirits, acquired the team in 2007 for USD 111.6 million. He resigned as director of RCSPL in 2016, after which Diageo assumed full ownership of the company.
The ongoing review is not expected to affect the team’s immediate planning for upcoming seasons of both the IPL and WPL. Should a new owner come on board, they would be required to obtain approval from the IPL, a process that could extend beyond next season. The WPL is likely to take place in January, followed by the IPL from March to May.
