EXPLAINED | RCB on sale: Will it impact IPL and WPL?

Chris Gayle, Virat Kohli, AB de Villiers celebrate with the IPL trophy after RCB won IPL 2025 (Source: Royal Challengers Bengaluru)

RCB on sale: Less than six months after Royal Challengers Bengaluru (RCB) ended their IPL title drought, the franchise has been put up for sale by its parent company, Diageo. In a disclosure before the Bombay Stock Exchange (BSE) on Wednesday, the company announced a “Strategic Review of Investment” in Royal Challengers Sports Pvt Ltd (RCSPL) that owns teams in the IPL and WPL. The process is expected to be completed by March 31, 2026.

If there's an ownership change at the RCB, how will that impact the IPL and WPL? Also, why has the sale process been initiated?

Why is Diageo selling RCB?

From the business point of view, Diageo ostensibly wants to consolidate its focus on its core alcohol business, divesting from non-core sports assets. But scratch beneath the surface, and RCB's victory parade turning tragic must have played a part. The Chinnaswamy stampede tragedy last June saw 11 lives lost and more than 50 people injured. It has put Diageo under reputational risks. There have been concerns over potential legal liabilities as well.

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How it might impact the IPL and WPL?

On the face of it, not much. The current RCB management is expected to continue with its day-to-day operations until the entire process is complete. By November 15, all the IPL teams will have to send the list of their retained players to the BCCI. A mini-auction would follow.

As far as the WPL is concerned, the focus is on retaining the team core. The current RCB ownership would do that. The initiation of the sale process is unlikely to give an added advantage to the other teams in the IPL and WPL. According to sources, Diageo wants a smooth handover.

Will RCB's brand value be affected?

Unlikely. Despite a 17-year wait for their maiden IPL title, RCB remain one of the most valuable brands in the field. A recent valuation by Houlihan Lokey, a global investment bank, put RCB’s brand value at $269 million — one of the top three franchises in the league. According to reports, Diageo might ask for a valuation of around $2 billion.

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When is the sale process expected to be completed?

By March 31, 2026. It will provide a two-year window for due diligence and regulatory approvals. The BCCI and the IPL Governing Council have already been informed about the development.