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RCB started as a 'vanity project', now a billion-dollar asset, says Suhel Seth on Adar Poonawalla’s bid
As Diageo exits Royal Challengers Bengaluru to focus on its core spirits business, billionaire Adar Poonawalla has emerged as the frontrunner. Suhel Seth explains why the timing, valuation, and brand synergy make this deal a potential game-changer for cricket and corporate India.
In his recent interview with CNBCTV-18, Suhel Seth, Founder & Managing Partner of Counselage India said, "Diageo under its new CEO Nick Jhangiani has become a sharply focused company on its spirits business."
A blockbuster transaction is brewing in the Indian Premier League (IPL) ecosystem. Diageo-owned United Spirits Limited (USL) has formally put Royal Challengers Bengaluru (RCB) on the block, appointing Citi as transaction advisor and seeking a near-$2 billion valuation. If sealed, this would mark the biggest-ever sale of an IPL franchise.
At the centre of the storm is Adar Poonawalla, CEO of Serum Institute of India, who has emerged as the leading contender to acquire the franchise. The development comes just months after RCB finally clinched its maiden IPL title in 2025 - a victory that electrified fans, bolstered its marketability, and heightened its commercial appeal.
Why Diageo is Selling Now
According to brand strategist Suhel Seth, Founder & Managing Partner of Counselage India, Diageo’s decision is rooted in focus and fiscal prudence.
“Diageo under its new CEO Nick Jhangiani has become a sharply focused company on its spirits business. India is a complex market, but Diageo has navigated it remarkably well. Owning an IPL team was never part of its core playbook - it was originally a vanity project under Vijay Mallya. Now, with valuations soaring, this is the smartest time for them to divest,” Seth told CNBC-TV18 in a recent interview.
He added that selling RCB unlocks massive value for Diageo. “What they paid years ago versus what they’ll realize now is extraordinary. The IPL has gone from being a branding experiment to a billion-dollar ecosystem, and Diageo is simply cashing out at the right moment.”
Why RCB is a Golden Asset
For buyers, the allure is obvious. RCB is one of the most followed franchises in the world, with a passionate fanbase and the enduring star power of Virat Kohli. Its recent championship only amplifies its value.
“Cricket is a religion in India,” Seth noted. “When you have a franchise with global fan following, record social media engagement, and an iconic figure like Kohli, you’re not just buying a team. You’re buying cultural capital.”
RCB’s valuation, hovering around $2 billion, is significantly higher than recent IPL franchise transactions, including Torrent Group’s ₹7,500 crore purchase of Gujarat Titans earlier this year. But Seth argues that pricing is a function of appetite. “The buyer won’t overpay, and the seller won’t undersell. The market adjusts itself, and right now, the IPL ecosystem is incredibly favourable.”
Why Adar Poonawalla Fits the Bill
Seth believes Poonawalla’s interest in RCB isn’t just about owning a cricket team, it’s about strategic brand synergy.
“Adar epitomizes three things: decency, dignity, and discipline in value creation. He’s already diversified into consumer-facing businesses like Poonawalla Fincorp, and his Dharma Entertainment acquisition showed his appetite for high-visibility assets. Cricket, with its emotional and aspirational pull, fits perfectly into that portfolio,” Seth explained.
He added, “Post-Covid, Poonawalla built a personal brand around health and hope for humanity. Cricket too is about triumph, resilience, and unity. There’s logic in this move.”
One question looming over a potential acquisition is whether Poonawalla would rebrand RCB. Seth advised caution that it comes with the risk of losing the equity that has been built over so long. While there’s always the temptation to add the Poonawalla name, the smarter play might be to co-brand like ‘Poonawalla RCB’.
A Benchmark for IPL’s Future
Industry experts believe this could be a watershed moment for IPL ownership. Unlike earlier franchise allocations where payments were spread over years, the RCB sale is expected to be an outright transaction, setting a new benchmark in how teams are valued and sold.
While speculation persists about whether others may follow Diageo in offloading their stakes, Seth thinks most current owners, Reliance, Sanjiv Goenka, Shah Rukh Khan, Torrent, are in it for the long haul. “The IPL story is still being written. The biggest investors aren’t looking to cash out yet."
For Diageo, the sale is about sharpening focus. For Poonawalla, it’s about amplifying his consumer presence and cultural footprint. For the IPL, it’s about crossing a new frontier in valuation and global recognition.
As Seth sums it up: “This is a win-win for everyone- the seller, the buyer, the IPL ecosystem, and cricket itself."
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