Diageo puts RCB on sale at $2 billion valuation, Adar Poonawalla emerges as frontrunner
If the sale materializes, it would make RCB one of the most valuable sporting organizations globally. To oversee the high-profile transaction, global investment bank Citi has been appointed as the transaction advisor.
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In a landmark development for Indian cricket, United Spirits Limited (USL), the Diageo-owned company that holds the Royal Challengers Bengaluru (RCB) franchise, has officially put the Indian Premier League (IPL) team up for sale. Billionaire Adar Poonawalla, CEO of the Serum Institute of India, has emerged as the leading contender to acquire USL’s entire stake in the franchise.
USL, a subsidiary of the British alcoholic beverage giant Diageo, is reportedly seeking a staggering valuation of $2 billion (approximately ₹17,762 crore) for RCB. If the sale materializes, it would make RCB one of the most valuable sporting organizations globally. To oversee the high-profile transaction, global investment bank Citi has been appointed as the transaction advisor.
Industry watchers say Diageo has been open to a potential sale for some time. Speculation intensified earlier this year after the tragic stampede at RCB’s victory parade in Bengaluru, which claimed 11 lives. While rumors had circulated in previous years, the latest developments, with formal bidders stepping forward and Citi’s involvement, suggest the process has entered a decisive phase.
Praveen Someshwar, MD & CEO of Diageo India, had hinted at the move earlier this month, telling,“RCB is an exciting business, but it is non-core for Diageo.”
RCB’s historic triumph in the 2025 IPL season has further elevated the team’s profile. Despite being one of the most followed and marketable franchises since the inception of the league, RCB had never clinched a title until this year. The victory not only energized its massive fanbase but also boosted its commercial appeal, aided by the continued presence of Indian cricket icon Virat Kohli, who has pledged his remaining playing years to the franchise.
Sources familiar with the matter revealed that Adar Poonawalla’s interest in acquiring RCB is aligned with his broader diversification strategy. While discussions with other bidders are still underway, insiders confirmed that the franchise is seeking a one-time payment from the eventual buyer.
This move echoes from June, when Diageo was said to be exploring options for RCB’s ownership and reportedly sought similar valuations of up to $2 billion.
RCB’s potential sale follows a growing trend of high-value IPL transactions. Earlier this year, Torrent Group signed a definitive agreement to acquire a 67% majority stake in Gujarat Titans (GT) from CVC Capital-owned Irelia Company Pte Ltd, valuing the relatively young franchise at about ₹7,500 crore.
Analysts believe RCB, with its global fanbase, established brand, and recent championship win, will command a record valuation and set a new benchmark for IPL franchises.
Former IPL commissioner Lalit Modi added fuel to the speculation on Monday, posting on Instagram that the RCB owners had finally decided to offload the team. “There have been a lot of rumours about the sale of an IPL franchise, specifically Royal Challengers Bengaluru – well, in the past, they have been denied. But it seems the owners have finally decided to take it off their balance sheet and sell it,” Modi wrote.
He further predicted that the sale would not only set a new record valuation but also underscore the IPL’s position as the fastest-growing and most valuable sporting league in the world. “Good luck to whoever can get their hands on it. There can be no better investment opportunity than this one,” Modi added.
While negotiations are still ongoing, market experts suggest that the eventual deal for RCB could reshape the financial landscape of the IPL. With Citi advising the transaction, Poonawalla’s aggressive interest, and Diageo’s willingness to divest, the stage is set for what may become the largest-ever IPL team sale.
