Is RCB up for sale? Details here
Diageo Plc, the present owner of Royal Challengers Bengaluru (RCB), is considering selling the team for up to $2 billion after winning their maiden IPL title.
Aadrika Tayal 
New Delhi (India) June 10: Royal Challengers Bengaluru (RCB), a famous Indian Premier League (IPL) franchise, may soon find a new owner. This comes days after the team claimed the IPL title for the first time in 18 years. RCB is one of the most popular sports teams on social media around the world. In cricket, the franchise has one of the largest fan base.
Diageo Plc, the British business that controls RCB through its Indian arm United Spirits Ltd., is looking into selling some or all of its investment in the franchise.
According to reports, Diageo has begun initial discussions with consultants and is open to many options, including a full sale. While no final decision has been taken, the firm may seek a valuation of up to $2 billion for the team. These discussions are still secret and no definite decision has been taken as of now.
The move comes as Diageo faces increasing regulatory pressure from the Union Health Ministry to reduce indirect alcohol promotion during big sporting events such as the IPL. The corporation has relied on soda and non-alcoholic brand extensions to maintain awareness under existing constraints. This strategy may soon be limited due to strict advertising standards.
Diageo might also be considering its ownership's future as part of a broader plan to improve its international operations. Diageo has experienced pressure on spirits sales in the US, its largest market. It is a result of tariffs and a decline in consumer demand for high-end alcohol goods. RCB may be able to raise money and return its attention to its main business by selling a portion of the corporation.
Vijay Mallya, a famous figure in India's spirits sector and the former owner of Kingfisher Airlines first purchased RCB. When Mallya's empire fell down, Diageo bought United Spirits, which allowed them to take over RCB.
With their recent IPL victory, RCB has gained new attention. A stampede broke out during a public event celebrating the winning team in Bengaluru. The audience outgrew the venue's capacity, resulting in the deaths of at least eleven people.
Aadrika Tayal
