3 June 2025… On this day, after almost 17 years, Royal Challenger Bangalore (RCB) won the IPL for the first time. RCB’s victory was celebrated across the country like it happens when the Indian team wins the World Cup. But now this team has reached the verge of being sold. On November 5, United Spirits Limited (USL), the Indian unit of RCB’s owner company Diageo, wrote a letter to the Bombay Stock Exchange (BSE), after which the sale of RCB is considered certain.
So let us understand in ABP Explainer whether RCB team is really going to be sold, who will be the new owner of the team and whether Virat Kohli will be out…
Question 1- What is written in Diageo’s letter, due to which the discussion about the sale of RCB has started?
answer- Diageo USL announces ‘strategic review’ of RCB ownership in letter. This letter was sent as a disclosure under Regulation 30 of Securities and Exchange of India (SEBI). After this announcement, rumors of RCB being sold intensified, as it is being considered a signal for the company to sell the IPL franchise. This process will be for both men’s and women’s teams of RCB and the company expects that the review will be completed by March 31, 2026. Under this letter-
- USL is initiating a strategic review of its investment in its wholly owned subsidiary Royal Challengers Sports Private Limited (RCSPL).
- RCSPL’s business is the ownership of RCB’s IPL (Men’s) and WPL (Women’s) teams.
- This move is to strengthen the review of USL and Diageo’s India portfolio to deliver long-term value for all stakeholders.
- According to reports, the value of RCB can be 2 billion dollars i.e. around Rs 17 thousand crores.
USL Managing Director and CEO Praveen Someshwar said that RCB has always been an important brand for the company. USL and Diageo keep reviewing their India business from time to time, so that the functioning of the company improves and remains strong in future also. USL will ensure that the interests of the RCB team and its associated people are completely protected.
Question 2- Why does Diageo want to sell RCB?
answer- According to sports experts, selling RCB is not a sudden decision, rather discussions were going on since June 2025 and the letter dated November 5, 2025 made it official. Diageo can sell RCB team due to these 5 reasons…
- Focus on core business: Diageo’s core business is alcohol brands, including Johnnie Walker, Smirnoff and McDowell’s. A sports franchise like RCB is a non-core asset, which is separate from the primary revenue stream of the company. Globally, Diageo is focusing on premiumization (focus on high-end brands) and digital transformation. Keeping RCB does not match this strategy.
- Regulatory pressure and brand image: Alcohol companies are banned from indirect advertising in sports. Although USL has kept RCB in a separate subsidiary (RCSPL), government scrutiny remains. In 2023, BCCI also raised questions on alcohol-linked ownership. Diageo is considering this as a risk.
- Financial Optimization: The valuation of RCB is estimated up to Rs 17 thousand crores. This could be a big cash inflow for USL. RCB could not win the trophy in IPL till 2025, but the expenses of players, marketing and stadium were continuously increasing. Diageo wants this money to be invested in core business growth.
- Impact of Chinnaswamy Stadium stampede: 11 people died in the stampede during RCB’s victory celebration. After this, public and media pressure increased, due to which questions of security responsibility on USL were raised. The incident became a reputational risk for Diageo, prompting consideration of a sale.
- IPO and value unlock plan: USL was talking about listing RCB separately for a long time, but now it is considering direct sale as a better option. The money received from the sale can be used for debt reduction and giving returns to shareholders.
Question 3- So is RCB really going to be sold or is it just a rumour?
answer- According to experts, USL’s letter has gone to SEBI, so it is obvious that the team is going to be sold. Anyway, news of selling the team has already arisen. But perhaps the company was waiting for the right opportunity. This means that we can assume that the chances of RCB being sold are very high.
Till now the most expensive team of IPL is Lucknow Super Giants (LSG). If RCB is sold, it will be the biggest deal in the history of IPL. In 2021, when two new teams Lucknow Super Giants (LSG) and Gujarat Titans (GT) were added to the IPL, LSG was bought by RPSG Group for Rs 7,090 crore and Gujarat was bought by CVC Capital for Rs 5,625 crore. This is considered to be the biggest franchise deal ever. Now the value of RCB is being estimated at Rs 17 thousand crores, which is much more than the purchase price of LSG and GT.
Question 4- Who can become the new owner of RCB?
answer- According to media reports, 6 companies are interested in buying RCB…
- Adani Group: Gautam Adani’s company wants to enter IPL as a new team. In the auction of Lucknow and Ahmedabad teams in 2022, the bid for Ahmedabad had lost, but now RCB is considered to be at the forefront of buying. Adani Group already owns Gujarat Giants in the WPL. Due to strong hold in sports infrastructure and marketing, no major obstacles are visible.
- JSW Group (Parth Jindal): Sajjan Jindal’s son Parth Jindal is a 50% shareholder of Delhi Capitals (DC). JSW Group also owns Bengaluru FC in the Indian Super League football team. According to BCCI’s cross-ownership rules, the same person or group cannot own two IPL teams. Therefore, to buy RCB, JSW will have to completely exit Delhi Capitals.
- Adar Poonawala (Serum Institute): Pune-based Adar Poonawala is one of the richest men in India and the CEO of Serum Institute of India. He wants to make a new entry in sports investment. They don’t have any IPL or cricket team yet, so there will be no conflict with BCCI rules. The transition can be smooth.
- Ravi Jaipuria (Devayani International): Delhi-based businessman Ravi Jaipuria is the chairman of Devyani International, which runs franchises of KFC, Pizza Hut and Costa Coffee. Has strong presence in F&B and real estate sector. He has little prior experience in sports, but has both the cash and vision for a deal with such a huge valuation. In the reports, he is being described as a strong contender.
- Two US-based private equity firms: Two American private equity companies are also showing interest, who can bid along with Indian partners. However, the names have not been revealed yet.
Question 5- What will happen to Virat Kohli if the team is sold?
answer- According to sports experts, Virat Kohli has been the biggest face of the team and even when other players have changed franchises, he has remained loyal to RCB. This Indian star has said on many occasions that he will leave the franchise only when he retires. As a player, Kohli’s contract is with the franchise and not with Diageo. That means the change in ownership will not affect his place in the team. However, any new ownership group may bring a different management and guidance to the team, which may or may not be better for Kohli.
Question 6- How was the journey of RCB in the last 17 years and how many ups and downs were seen?
answer- Since the start of IPL in 2008, RCB has won only one IPL title. At the same time, the women’s team has also become the winner once in WPL in 2024. Still, this team is considered one of the three most expensive franchises. There are two big reasons for this, one is the presence of a superstar player like Virat Kohli and the other is the huge fan base (fandom) of the team. But RCB’s journey has not been easy…
- She stood 7th in the inaugural edition of IPL i.e. 2008.
- In 2009, she stood second due to her strong performance.
- RCB did perform well in 2010, but finished third.
- In 2011, RCB reached the finals, but could not win and finished second.
- In 2012, she could reach only fifth place.
- In 2013, RCB’s performance was a complete flop and under the leadership of Virat Kohli, the team stood last i.e. eighth in the points table.
- Even in 2014, RCB’s position did not improve and it remained at seventh position.
- In 2015, Kohli-led RCB improved its performance and finished third.
- In 2016, Kohli’s army missed the title and finished second.
- In 2017, once again RCB’s performance was disappointing and it stood last in the points table.
- It stood sixth in 2018 and lowest in 2019, while in 2020 the team stood fourth.
- The team finished third in 2021. Whereas it stood fourth in 2022, sixth in 2023 and fourth in 2024.
The first owner of RCB was alcoholic businessman Vijay Mallya. But in 2016, when Mallya got into trouble, Diageo bought his liquor company as well as RCB. RCB was bought by Vijay Mallya in 2008 for $111.6 million. According to that time, this amount in rupees was approximately Rs 476 crores. This was the second most expensive IPL team at that time. Mallya’s company USL owned RCB.
In 2014, Diageo bought a major stake in USL and by 2016, after Mallya’s exit, the entire ownership of RCB came to Diageo. Currently, RCB is operated by USL’s subsidiary Royal Challengers Sports Private Limited (RCSPL).