United Spirits Ltd, the Indian subsidiary of London-based Diageo, is initiating a "strategic review" of its investment in Royal Challengers Sports Pvt. Ltd, the wholly owned subsidiary that manages the Royal Challengers Bengaluru men's and women's teams. This move effectively puts the popular IPL and WPL franchise up for potential sale. The company made the announcement in a regulatory filing on Wednesday, noting that the review is expected to conclude by March 31, 2026.
Praveen Someshwar, Managing Director & CEO of USL, stated the rationale for the review: "RCSPL has been a valuable and strategic asset for USL; however, it's non-core to our alcobev business." He added that this step "would reinforce USL’s & Diageo’s commitment to continue reviewing its India enterprise portfolio to enable sustained delivery of long-term value to all its stakeholders, while keeping RCSPL’s best interest in mind."
Speculation about the franchise's sale had intensified following an unfortunate stampede outside the M. Chinnaswamy Stadium on June 4, which resulted in 11 fatalities during the IPL title celebrations. Reports suggest that Diageo, the sole owner since 2016, is seeking a valuation of around $2 billion for the franchise, which has an estimated brand value of $269 million according to a Houlihan Lokey study. Investment banking firm Citibank has reportedly been appointed to handle the sale process.
The sale process will run in parallel with the upcoming cricketing calendar, presenting a unique situation for any potential buyer. The IPL franchises must finalize their player retentions by November 15, meaning the current management will handpick the squad for the next season.
The official change of guard is generally expected to occur after the conclusion of the 2026 IPL season, subject to the negotiations and clearance from the IPL Governing Council. The franchise has consistently ranked among the most valuable IPL teams, primarily due to the massive fan base and the presence of star player Virat Kohli.
The development sparked immediate activity in the stock market, with shares of United Spirits jumping up to 1.7% in early trade before trading in the negative zone. Interest in the franchise has already been noted publicly, with Serum Institute of India CEO Adar Poonawalla previously posting on social platform X: "At the right valuation, RCB is a great team..." The review process covers the entire business of RCSPL, which includes ownership of both the men's and women's cricket teams.