The Indian Premier League (IPL) 2025 champions, Royal Challengers Bengaluru (RCB), earlier revealed that the franchise is ready for sale only if any of the buyers fulfill their demand of USD 2 billion.
Meanwhile, Adar Poonawalla— Serum Institute of India’s CEO, sparked a rumor that he is in negotiations with Diageo Plc— the global liquor giant, that currently owns RCB.
However, it is not yet confirmed if Diageo Plc, the parent company of United Spirits, has planned to sell its ownership rights of RCB or not.
Poonawalla’s Tweet Adds Fuel to the Speculations
Several sources claimed that Adar Poonawala might be the emerging contender among other interested groups to acquire the ownership privileges of RCB.
The 44-year-old took to his X account on October 01 (Thursday) and tweeted saying:“Yes! At the appropriate valuation, RCB continues to remain as one of the greatest IPL teams….”, Poonawalla wrote.
Former IPL Chairman About RCB’s Ownership
Lalit Modi, the former IPL chairman, tweeted on September 30 (Tuesday) saying:
“Yeah! The ongoing rumors about the potential sale of the RCB franchise were previously denied. But the franchise owners have likely decided to sell the team and remove it from their financial sheets.
Having won the IPL 2025 trophy, RCB, with a strong fan base, is the only team that is available completely for acquisition,” Lalit wrote on his X account.
What Does the IPL 2025 Valuation Report Convey?
Houlihan Lokey, the leading global investment bank, stated that RCB emerged as the most valuable franchise of the year, in terms of business and brand:
“Certainly! RCB’s success transcends beyond the on-field boundary ropes. Outside the field, the franchise partnered with a tech company named “Nothing” as an associate sponsor.
Also, RCB upgraded the match-day experiences (through fan engagement, stadium renovations, or high-quality entertainment) and initiatives across Karnataka at the base levels.
So, all these efforts have significantly increased RCB’s brand equity due to the grassroots level engagement, strategic digital outreach, and the star power of high-profile iconic cricketers,” the IPL Valuation Study 2025 report stated by Houlihan Lokey.
Famous Brand Strategist Reveals Why Diageo Plc Might Sell RCB?
Suhel Seth, a renowned brand strategist and Indian businessman, spoke about Diageo’s potential decision to sell RCB worth $2 billion:
“Possibly! Diageo’s new CEO, Nick Jhangiani, is now keen to expand the company’s spirits business.
There is no doubt that India is a complex market. But look at the way Diageo has successfully operated over there. However, owning an IPL franchise was never a part of Diageo’s core business strategy.
The team was originally formed during Vijay Mallya’s tenure as a status symbol or a vanity project. With the IPL valuation rising, this could be the smartest time for the group to divest now,” Seth spoke during an interview with CNBC TV-18.
Furthermore, the 62-year-old suggested that there could be logic in Adar Poonawalla’s move to acquire RCB:
“Yeah! If you just observe after the COVID-19 pandemic era, Poonawalla extended his business scope around global health and hope. So, cricket’s essence of triumph, consistency, and unity makes his move a logical one,” Seth added.
Can Buying RCB Prove to be a Valuable Asset?
It’s a fact to accept that RCB is not just an IPL team, but a global brand. Especially, the presence of iconic stars like Virat Kohli and their maiden championship title in IPL 2025 amplifies the brand value of the franchise.
However, the reality is that the Royal Challengers Bengaluru’s valuation, ranging around $2 billion, is much higher compared to other IPL teams. For instance, the Torrent Group acquired the IPL 2022 champions Gujarat Titans, worth INR 7,500 crore.
So, the concept becomes clear for the newbies as well. The price of the team depends on two main factors— the buyer’s inability to overpay and the seller’s consciousness not to undersell
Mainly, the market finds a fair price, creating a proper balance between demand and interest.
Also Read: Ravichandran Ashwin Goes Unsold in ILT20 Auction! A Humiliating Snub?
Final Opinion
RCB’s value has skyrocketed compared to the ones that Diageo acquired in the past. So, it’s understood that the company that paid back to acquire the franchise is far less than what they can earn by selling it now.
Most importantly, IPL continues to grow from a marketing experiment into a billion-dollar business in the cash-rich leagues of sports.
While Adan Poonawalla’s tweet is claimed to be a rumor, experts predict that Diageo might take advantage of their growth by selling RCB at the right moment, particularly during the peak market value.
It remains to be seen how the Royal Challengers plan to set new benchmarks regarding IPL teams’ valuation and selling in the forthcoming days. In conclusion, the IPL business environment continues to grow stronger every year. So, this could be a great moment for sensational deals to happen.
