According to a recent Bloomberg report, RCB owner Diageo is reportedly exploring strategic options, including a possible partial or full stake sale of the franchise. The British distiller is said to be in early discussions with potential advisers and is seeking a valuation close to $2 billion. This development comes amid growing regulatory pressure from the Indian Health Ministry, which is pushing to curb the indirect promotion of tobacco, alcohol, and other unhealthy products during IPL events.
Despite the speculation, Diageo has dismissed the reports as ‘speculative’, denying any confirmed stake sale plans. While direct advertising of liquor and tobacco is banned in India, brands like Diageo have historically promoted related products—such as energy and soft drinks—using top cricket stars. The government’s scrutiny on surrogate advertising in IPL has intensified, triggering brands to reassess their visibility strategies.
Royal Challengers Bangalore (RCB), one of the original IPL franchises, was acquired by Diageo following the downfall of Vijay Mallya’s Kingfisher Airlines. Recently, RCB clinched their first IPL title, adding significant value to the franchise. With Virat Kohli’s immense social media presence and the IPL’s skyrocketing market valuation, ownership of a team like RCB is increasingly seen as a prized asset in the sports and entertainment industry.
