Sports News: The Indian Premier League (IPL )'s prestigious team Royal Challengers Bangalore (RCB) may have a major change in the ownership. According to a Bloomberg report, Britain's global alcohol beverage veteran Diageo PLC is considering partially or fully selling its stake. If this deal is done, it could be one of the most expensive team sales in the history of IPL - around Rs 17,000 crore ($2 billion).
Initial discussions started, but no final decision
According to the report, Diageo is currently interacting with potential investment bankers and advisors at the early level. The company holds a large stake in India's leading alcohol manufacturer, United Spirits Limited, through which it is owned by RCB. However, no final agreement or public statement has been issued yet.
Discussion of selling arose amidst the government's strictness and branding ban
This exercise has come to light at a time when India's Health Ministry is planning to strictly limit the indirect publicity of tobacco and liquor brands in the IPL. Currently there is a ban on direct advertising of tobacco and liquor in the country, but brand companies have been campaigning using famous players through proxy products like 'Soda' or 'Music CD.'
Experts believe that if strictness in this direction increases, sports sponsorship can become a risky investment for companies like Diageo, which has affected the decision of such disinvestment.
Historical background of RCB
RCB was initially bought by Kingfisher Group owner Vijay Mallya. But after the sinking of Kingfisher Airlines in 2012, United Spirits and then Diageo took over their liquor companies, making RCB ownership to Diageo. The team is headquartered in Bangalore and its brand dominance has become even stronger than the presence of Virat Kohli.
RCB value and global appeal
RCB has recently become the champion of the IPL, which has increased its market value and brand power tremendously. Virat Kohli's social media presence is counted among the largest of athletes in the world. In such a situation, RCB sales can become a benchmark for future IPL team deals.
IPL is no longer a cricket league—it has become a global entertainment and commercial ecosystem, which is also giving competition to the NFL and the English Premier League.
Strategic time for Diageo
The US, which is the largest market of Diageo, has been affected by the recession and tariffs on the sale of premium liquor. In such a situation, the company is revaluing its non-core assets worldwide and the possible sales of RCB may be part of that strategy. This can help Diageo currently raise capital and strengthen its main operations. Possible sales of RCB can not only change the economic structure of the IPL, but may also indicate how the brand ban and regulatory pressure in the future sport franchise can affect the strategy of investors.
