Just days after Royal Challengers Bengaluru (RCB) defeated Punjab Kings in Ahmedabad to win their first-ever Indian Premier League (IPL) title, rumours began to swirl about the team being put up for sale. However, the franchise’s owner, Diageo India, which is part of the UK-based Diageo Plc, has firmly denied these claims.
The speculation suggested that Diageo was considering selling part or all of the team through its Indian unit, United Spirits Ltd, with a possible valuation reaching up to $2 billion. Reports also hinted that the company had been in early talks with potential advisers.
Putting an end to the buzz, Mital Sanghvi, Company Secretary at United Spirits, sent an official statement to the Bombay Stock Exchange (BSE) and its Surveillance Department. “The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion,” the statement read.
Since Diageo is listed on the BSE, the surge in United Spirits' share price which rose by 3.3% to a five-month high prompted the exchange to seek clarification. The rise was attributed to investor excitement following the unverified sale news.
Diageo remains committed to owning RCB
These rumours came at a sensitive time. The Indian health ministry is pushing for a ban on alcohol and tobacco brand promotions in cricket. While alcohol ads are already restricted in India, companies like Diageo have promoted non-alcoholic products such as soda using celebrity cricketers.
Adding to the pressure, RCB was recently caught in a controversy due to a tragic incident outside Bengaluru’s Chinnaswamy Stadium. On June 4, during a celebration of the team’s IPL victory, an estimated 2.5 lakh fans gathered, leading to a stampede. Sadly, 11 people lost their lives and 56 others were injured. The incident has drawn sharp criticism from local authorities and raised concerns about safety and crowd control at such events.
