United Spirits Addresses Speculation on RCB Stake Sale
United Spirits Responds to Stake Sale Rumors
United Spirits, a prominent beverage company, has addressed recent speculation regarding its parent company, Diageo, considering the sale of its stake in the Royal Challengers Bengaluru (RCB). This speculation arose following RCB's victory against Punjab Kings in the IPL final held in Ahmedabad on June 3.
Reports indicated that Diageo Plc, the UK-based spirits conglomerate, was contemplating selling either a portion or the entirety of its stake in RCB after the franchise's successful IPL 2025 season. Diageo is the owner of both the men's and women's teams of RCB, with the women's team, captained by Smriti Mandhana, having secured their first Women’s Premier League (WPL) title by defeating Delhi Capitals last year.
Diageo's Strategic Options
Sources suggest that Diageo has begun discussions with potential advisors to explore options for either partial or complete divestment from RCB. The franchise is reportedly seeking a valuation of up to $2 billion, equivalent to INR 17,000 crore, reflecting the increasing market and commercial value of the Indian Premier League.
Clarification from United Spirits
In response to the circulating rumors about Diageo's potential stake sale, United Spirits has labeled these reports as 'speculative.' The company emphasized that there are currently no discussions regarding the sale of its stake in RCB.
In a regulatory filing with the Bombay Stock Exchange (BSE), United Spirits stated, 'This has reference to your email communication dated 10th June 2025 seeking clarification from the Company on media reports in relation to the potential stake sale of RCB.' They further clarified, 'The Company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussions.'
Market Reaction
According to a report by Livemint, shares of United Spirits rose by over 3 percent on June 10, reaching a five-month high, following the news of Diageo's potential stake sale in RCB. However, it was also noted that no final decision has been made, and Diageo may ultimately decide against selling its stake in the franchise.
History of RCB Ownership
Royal Challengers Bengaluru has been a part of the Indian Premier League since its inception in 2008. Initially owned by liquor magnate Vijay Mallya's United Breweries Group, Diageo took control of the franchise after acquiring Mallya's spirits business following the closure of Kingfisher Airlines in 2012.
Since then, Diageo has overseen RCB's operations and branding through its subsidiary, United Spirits, based in Bengaluru. The company has played a crucial role in developing the franchise's commercial strategies, marketing, and sponsorship deals over the past decade. Notably, Diageo is among the few companies that own a single franchise in both the men's IPL and the women's WPL.
RCB's Brand Value
Royal Challengers Bengaluru is recognized as one of the successful franchises in IPL history. Even before clinching their first IPL title, RCB had built a substantial fanbase and strong brand value, attributed to its star-studded rosters, consistent playoff appearances, and aggressive marketing tactics.
RCB is one of four IPL teams, alongside Mumbai Indians, Chennai Super Kings, and Kolkata Knight Riders, with a brand valuation of $100 million. The franchise's current brand valuation is estimated at $117 million, or INR ₹1012 Crore.