Diageo Reviews Investment in RCB Amid Franchise Success

Diageo, the owner of the Royal Challengers Bengaluru (RCB) franchise, is conducting a strategic review of its investment in the team. This move comes after RCB's recent successes in the IPL and WPL. The review aims to assess the franchise's alignment with Diageo's core business interests. Amidst challenges in its global beverage sector, speculation about a potential divestment has increased, particularly following a tragic incident during victory celebrations. Despite these developments, the review is not expected to significantly impact RCB's operations for the upcoming seasons. Discover more about the implications of this strategic decision for the franchise's future.

By Narendra Chaudhary Nov 5, 2025, 23:48 IST

Diageo's Strategic Review of RCB Investment

Diageo, the parent company of the Royal Challengers Bengaluru (RCB) franchise in both the Indian Premier League (IPL) and Women's Premier League (WPL), has announced a "strategic review" of its investment in the team. This review is the initial step towards potentially divesting its stake in Royal Challengers Sports Private Limited (RCSPL), the entity that owns both franchises. RCB has recently enjoyed significant success, clinching the WPL title in 2024 and the IPL championship this year by defeating the Punjab Kings in the final.

Diageo's Statement on RCB Investment

According to reports from a sports news outlet, Diageo disclosed its plans in a filing with the Securities and Exchange Board of India (SEBI) on Wednesday. The review is anticipated to conclude by March 31 of the following year. RCSPL operates as a wholly-owned subsidiary of United Spirits Ltd, which is under Diageo's ownership. Praveen Someshwar, the Managing Director and CEO of United Spirits, stated in the SEBI filing, "While RCSPL has been a significant asset for USL, it is not central to our alcohol and beverages business." He emphasized that this decision reflects the commitment of USL and Diageo to evaluate their portfolio in India to ensure long-term value for stakeholders while considering the best interests of RCSPL.

Context of the Review Amid Business Challenges

This strategic move comes as Diageo faces challenges in its primary global beverage business, which has encountered considerable pressure in recent years. Earlier this June, the company had dismissed rumors regarding the sale of RCB, with USL's company secretary Mital Sanghvi labeling such claims as "speculative." The speculation surrounding a potential divestment has intensified following a tragic stampede outside the M Chinnaswamy Stadium in Bengaluru during the victory celebrations, just a day after RCB secured the title in June.

RCB: A Franchise with Star Power

RCB stands out as one of the most beloved franchises in the IPL, largely due to its iconic player, Indian cricket legend Virat Kohli, alongside international stars such as Chris Gayle, AB de Villiers, Glenn Maxwell, and Faf Du Plessis, who have all contributed to the team's legacy over the years.

Ownership History of RCB

When the IPL was inaugurated in 2008, RCB was the second-most expensive franchise, purchased by Vijay Mallya, then chairman of United Spirits, for $111.6 million in 2007. Mallya resigned as director of RCSPL in 2016, leading to Diageo acquiring full ownership of the franchise.

Future Implications for RCB

Despite the ongoing review, it is unlikely to disrupt the team's operations for the upcoming seasons in both the IPL and WPL. Should a new owner emerge, they would need to obtain clearance from the IPL, a process that could extend beyond the next season. The WPL is expected to commence in January, while the IPL is scheduled to run from March through May.