Royal Challengers Bengaluru Owner Denies RCB Sale Rumors

Just days after Royal Challengers Bengaluru finally ended their IPL trophy drought with a dramatic win over Punjab Kings in Ahmedabad, rumors began flying about the franchise being put up for sale. But the owners, Diageo India, were quick to set the record straight.

In a formal communication to the Bombay Stock Exchange (BSE) and its Surveillance Department, Diageo’s Indian unit, United Spirits Ltd., dismissed the reports, calling them “speculative in nature.” The clarification came after Bloomberg reported that Diageo was exploring the idea of selling part or even the entirety of the RCB franchise, possibly seeking a valuation of up to $2 billion. 

RCB’s recent title win has undoubtedly boosted their brand value, and it’s no surprise that talk of a potential sale has gained traction. Even IPL founder Lalit Modi weighed in, telling Cricbuzz, “I will not be surprised if it is sold for a higher price.” His comments add weight to the buzz, especially considering that Gujarat Titans were sold to the Torrent Group for nearly $1 billion in 2021. 

Following the Bloomberg report, United Spirits’ stock price jumped over 3% on Tuesday. But that rally may have been premature. Mital Sanghvi, company secretary of United Spirits, put an end to the speculation with a note to the BSE, saying: “The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion. This is for your information and records.” 

The timing of the rumors also raised eyebrows, coming just as India’s health ministry is pushing for stricter rules against the advertising of tobacco and alcohol in the IPL. While alcohol ads are banned outright, companies like Diageo have previously promoted their soda brands using top cricketers as brand ambassadors. 

Adding to the complications is the tragedy that unfolded in Bengaluru during RCB’s celebratory parade on June 4. What was meant to be a joyous victory event turned into a nightmare when a massive crowd of around 2.5 lakh people gathered near the Chinnaswamy Stadium. The celebrations ended in chaos as a stampede led to the deaths of 11 people and left 56 injured. The incident has drawn serious criticism from local authorities and sparked intense scrutiny over how the event was managed. The fallout from the stampede has brought additional pressure on Diageo, not just from a brand image perspective but also in terms of public and regulatory trust. 

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