Two years ago, Royal Challengers Bengaluru (RCB) contributed 8 percent to United Spirits’ net profit. This contribution has doubled to 16 percent in the fiscal year 2023-24.
The IPL team RCB reported a significant revenue increase of 163% to Rs. 650 crore for the fiscal year 2023-24, as reported by PTI. United Spirits Limited (USL), India’s largest alcoholic beverages company and owners of Royal Challengers Bangalore (RCB), announced that the cricket team accounted for 16 percent of its net profit. This marks a substantial increase from two years ago when RCB’s contribution to USL’s profit was 8 percent, highlighting the IPL team’s impressive growth.
In the same period, RCB’s revenue surged from Rs. 247 crore to Rs. 650 crore,and its net profit for 2023-24 reached Rs. 222 crore, driven by increased income from central rights received from the Board of Control for Cricket in India (BCCI).
USL, a subsidiary of Diageo Plc, the world’s largest distiller, noted that RCB had reported a net loss of Rs. 15 crore in the 2022-23 financial year, as stated in its annual report.
Additionally, RCB generates revenue through sponsorship, royalty and licensing agreements, and ticket sales. Qualifying for playoffs further boosts their earnings. This season, RCB’s women’s team secured the Women’s Premier League (WPL) title, contributing positively to their overall revenue.
“Revenue from sponsorship and royalty and licensing contracts are recognised over the period of Indian Premier League and WPL season, based on number of matches played, which corresponds with the period of service,” Diageo Plc said in the annual report.
Harsha Bhogle tweeted, “Did anyone ever imagine that an iconic liquor company, with some of the biggest brands in its portfolio, will get 16% of the profits of its India operations from its cricket team?”
Name of Author: Cricexec Staff
