Royal Challengers Bangalore (RCB), the team that finally captured their first IPL title in 2025, could soon witness a major change off the field. Reports suggest that Diageo, the British multinational beverage company that owns RCB through United Spirits Limited, is now looking to sell its stake in the franchise. This development comes at a time when RCB’s brand value has soared to new heights, largely due to their recent championship win and the presence of superstars like Virat Kohli.
According to Bloomberg, Diageo is currently in discussions with investment bankers and advisors to evaluate options for selling part or all of its ownership in RCB. The valuation being considered is around $2 billion or approximately ₹16,000 crore. But the big question is — why now?
The answer lies in the changing regulatory environment in India. The Health Ministry has been pushing for stricter controls on advertising related to alcohol, tobacco, and unhealthy products in sporting leagues. While direct advertising of alcohol is already banned in India, many companies use indirect branding tactics like soda variants, merchandise, or surrogate advertising to maintain visibility. For a company like Diageo, whose identity is deeply rooted in alcohol brands like Johnnie Walker and Black & White, continuing with a high-profile team like RCB poses a significant reputational risk.
RCB today is much more than just a cricket team. It’s a high-value brand with extensive merchandise, themed cafés, and a massive fanbase powered by Virat Kohli’s global appeal. Selling the team now could be a strategic decision aligned with the classic “buy low, sell high” philosophy, especially as IPL franchise valuations continue to climb.
From its origin in 2008, when Vijay Mallya — then the owner of Kingfisher Beer — purchased the team, RCB has come a long way. However, after Mallya’s financial troubles and the collapse of Kingfisher Airlines, he lost control of United Spirits, which was taken over by Diageo in 2014. With that acquisition, RCB’s ownership also shifted to the UK-based liquor giant.
Diageo had initially acquired RCB as a way to boost its footprint in the Indian market using the IPL’s massive reach. But now, as regulatory risks mount and the landscape shifts toward cleaner branding, continuing association with an alcohol-backed team may not be sustainable.
If Diageo finalizes the sale, it could become the largest IPL franchise transaction to date and set a benchmark for future valuations. The new owner could be a major Indian corporate group like Adani or JSW, or even a global investor looking to enter India's booming sports industry. With new ownership, RCB’s branding may also evolve, moving from alcohol to sectors like technology, finance, or consumer goods.
Importantly, Virat Kohli’s presence and the team’s loyal fanbase are expected to remain strong assets for any new owner. In fact, the shift in ownership could push RCB to become a more globally promoted franchise, aligning with international sports business practices.
This potential sale reflects a broader shift in Indian sports — from informal passion to formal corporate structure. With the government emphasizing health-centric policies and ethical advertising, IPL teams may need to rethink their long-term branding and ownership strategies. What once was just cricket is now an expanding corporate ecosystem.
Whether Diageo ultimately sells RCB or not, one thing is certain: the IPL is entering a new era, one where regulatory compliance, brand ethics, and corporate values are becoming as important as performance on the pitch.
