Rcb may get a new owner before the start of IPL 2026.
The 2025 champion team Royal Challengers Bangalore may get a new owner before the start of the 2026 edition of IPL. This means that UNL, the country's largest liquor company, has made full preparations to sell its sports unit. According to the report, United Spirits is reviewing its cricket franchise business. This step may lead to sale or strategic restructuring of Royal Challengers Bangalore (RCB) teams. India's largest liquor company said in a filing to the exchanges on Wednesday that the review of Royal Challengers Sports Pvt Ltd (RCSPL) - which owns the RCB teams in the Indian Premier League and Women's Premier League - is expected to be completed by March next year. This means that with the start of the new IPL season next year, RCB may get a new owner.
United Spirits MD Praveen Someshwar said that RCSPL has been a valuable and strategic asset for USL. However, this is a non-core business for our alcobev business. He further said that this move reinforces the commitment of USL and Diageo to continue to review their Indian enterprise portfolio to deliver long-term value to all its stakeholders, while keeping in mind the best interests of RCSPL. Earlier this year, RCB, one of the original IPL franchises, was considered the most valuable, with around $269 million, after winning the championship for the first time, according to global investment bank Houlihan Lokey.
Analysts said that the company has options ranging from exiting the business to adopting a new partnership arrangement. Abneesh Roy, executive director of brokerage firm Nuvama Institutional Equities, said that we believe there is a strong possibility of the franchise being sold. Nuvama's Roy said global consumer companies are increasingly monetizing non-core assets to raise funds for buybacks or to strengthen balance sheets. He said no other major alcoholic beverage company around the world owns sports franchises.
Their preferred brand visibility comes from media spots, sponsorships or surrogate advertising. RCB was founded in 2008, when then USL chairman Vijay Mallya acquired the IPL's Bengaluru franchise for $111.6 million, the second highest bid in that auction. After Mallya's departure, Diageo took complete control of the USL and RCB franchises in the last few years.
In 2021, USL had initiated a strategic review of select popular brands and a year later sold about 32 major brands including Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov to Singapore-based Inbrew for Rs 820 crore. Analysts say the cricket franchise business could attract interest from sports investors and PE firms looking to invest in India's fast-growing cricket economy.
The valuation of this economy is several billion dollars and it continues to expand with new media rights deals and league formats. He said that if the business is sold and starts operating as an independent corporate unit, the dividend will be distributed proportionately to all shareholders including minority investors and the parent company. Nuvama's Roy said completing any transaction would require multiple levels of approvals. If a foreigner wishes to buy it, it will have to be approved by the BCCI (which owns the IPL and WPL), regulators, and possibly FDI/FEMA approval.
