British spirits giant Diageo Plc is exploring a potential sale—either partial or complete—of its ownership stake in the Indian Premier League franchise Royal Challengers Bengaluru (RCB), according to people familiar with the matter, as first reported by Bloomberg. The company is said to be consulting with potential advisers as it evaluates its strategic options, with a possible valuation of the team reaching as high as $2 billion.
The move comes as Diageo undertakes a broader review of its portfolio globally, aiming to streamline operations and unlock value from non-core assets. A sale of RCB could serve both financial and strategic purposes at a time when the company is facing headwinds in key markets, including a consumer slowdown and tariff pressures in the United States—its largest market.
No decision is final and Diageo may decide to hold onto its stake said sources familiar with the matter, speaking anonymously.
A Diageo spokesperson declined to comment on the matter, and United Spirits, its Indian subsidiary through which RCB is owned, has not issued a response.
Health ministry crackdown intensifies pressure on alcohol-linked branding
The potential move by Diageo also comes amid growing regulatory scrutiny in India. The health ministry has been pushing to curb indirect advertising of alcohol and tobacco brands during IPL broadcasts and via athlete endorsements.
Although direct advertising of liquor and tobacco is already banned in India, companies like Diageo have promoted their soda and other non-alcoholic product lines through branding that is still closely associated with their alcohol products, often leveraging endorsements from high-profile cricketers.
This increasing regulatory pressure may be an added factor driving Diageo to reconsider the value and risk of owning a high-profile IPL franchise under intensifying scrutiny.
From Mallya legacy to Kohli-led resurgence
RCB, one of the original IPL franchises, has experienced a resurgence in value and visibility in recent years. Initially acquired by liquor baron Vijay Mallya, the franchise became part of Diageo’s portfolio when it acquired Mallya’s spirits business. Mallya’s tenure ended in financial controversy, most notably with the collapse of Kingfisher Airlines in 2012.
Since then, RCB has grown into one of the IPL’s most valuable and recognized teams. The franchise recently claimed its first IPL championship title, with marquee player Virat Kohli—one of the most followed athletes globally—remaining its biggest star and brand asset.
A benchmark deal in one of sports’ fastest-growing leagues
With IPL team valuations climbing rapidly, any sale of RCB would set a new benchmark in the global sports industry. The league has evolved into a commercial juggernaut, with short-format games drawing hundreds of millions of viewers in India and internationally. The IPL now rivals leagues like the NFL and EPL in terms of advertising impact and global reach.
Ownership of an IPL franchise has become one of the most coveted assets in global sport, particularly among private equity firms, conglomerates, and family offices seeking exposure to fast-growing sports properties in emerging markets.
A successful transaction for RCB could not only reshape Diageo’s Indian strategy but also serve as a case study for global brands reassessing their sports investments under shifting regulatory, market, and brand dynamics.
