United Spirits, Diageo’s India arm, launches strategic review of Royal Challengers Bengaluru ownership

Royal Challengers Bengaluru's Rajat Patidar lifts the trophy as he celebrates with teammates after winning the Indian Premier League

United Spirits Ltd (USL), the Indian arm of global beverage major Diageo, on Wednesday announced that it has initiated a strategic review of its investment in Royal Challengers Sports Pvt. Ltd (RCSPL), the company that owns the Royal Challengers Bengaluru (RCB) cricket franchise.

RCSPL’s business comprises ownership of the men’s and women’s Royal Challengers Bengaluru teams, which participate in the Indian Premier League (IPL) and Women’s Premier League (WPL) cricket tournaments organised annually by the Board of Control for Cricket in India (BCCI).

The company said the review process is expected to be completed by March 31, 2026.

Praveen Someshwar, Managing Director & CEO of United Spirits Ltd, said:

“RCSPL has been a valuable and strategic asset for USL, however it’s non-core to our alcobev business. This step reinforces USL’s and Diageo’s commitment to continue reviewing its India enterprise portfolio to enable sustained delivery of long-term value to all its stakeholders, while keeping RCSPL’s best interest in mind.”

USL added that the review aligns with its broader strategy of assessing portfolio priorities to ensure sustainable growth and value creation within its core alcoholic beverages business.

United Spirits Ltd has not specified whether a sale is under consideration as it undertakes a strategic review of its investment in Royal Challengers Sports Pvt. Ltd, the owner of the Royal Challengers Bengaluru (RCB) franchise, Bloomberg reported.

A potential transaction could set a new benchmark for valuations in the rapidly expanding Indian Premier League (IPL) ecosystem, where team stakes have become trophy assets attracting global investors. The IPL has grown into a global entertainment and advertising powerhouse, now comparable in commercial scale to the National Football League (NFL) and the English Premier League (EPL).

According to Bloomberg’s earlier report in June, the British distiller had held discussions with potential advisers to explore various options — including a possible sale of part or all of its stake in the club — and could seek a valuation of up to $2 billion. The review also comes amid efforts by India’s Health Ministry to tighten restrictions on the promotion of alcohol and tobacco brands in sports.

One of the founding teams of the IPL, Royal Challengers Bengaluru was originally owned by Vijay Mallya, whose Kingfisher Airlines collapsed in 2012 following debt defaults. Diageo later acquired ownership of RCB after purchasing Mallya’s spirits business.

RCB, which counts Virat Kohli among its biggest stars and one of the world’s most-followed athletes, secured its first-ever IPL title earlier this year.

*With Agency Inputs