The Royal Challengers Bengaluru (RCB) franchise, associated closely with superstar Virat Kohli, is headed for a major ownership shake-up. As reported by Cricbuzz, global beverage corporation Diageo has confirmed that it has begun the formal process to evaluate a sale of the franchise. The disclosure was made on November 5 in a filing to the Bombay Stock Exchange (BSE).

Diageo controls Royal Challengers Sports Private Limited (RCSPL), a wholly owned subsidiary of its Indian arm United Spirits Ltd. The company has officially initiated what it calls a “Strategic Review of the Investment in Royal Challengers Sports Pvt Ltd (RCSPL).” RCSPL is responsible for managing both the men’s Indian Premier League (IPL) and women’s Women’s Premier League (WPL) teams under the RCB banner.

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The ongoing review is expected to reach its conclusion by March 31, 2026. This means RCB’s ownership could potentially change hands before the start of IPL 2026. This move marks a significant moment for the IPL, one of the most valuable sporting leagues globally. Franchises in the IPL have evolved into high-profile sporting brands that attract widespread fan engagement, media coverage, and corporate attention. Accordingly, stakes in popular teams like RCB are seen as premium “trophy assets.” Any sale involving RCB is likely to play a major role in determining the next benchmark for IPL franchise valuations.

Why Did They Took This Decision?

Diageo’s decision ties into its long-term business priorities. The company has clarified that the RCB franchise, although valuable, is ultimately a non-core part of its main alcoholic beverage business. Praveen Someshwar, CEO of United Spirits, stated in the filing that while Royal Challengers Sports has been a “valuable and strategic asset,” the company is now focusing more directly on expanding and strengthening its core alcobev portfolio. This aligns with Diageo’s global direction of sharpening focus and building sustained value within its primary business.

Market discussions around the RCB valuation have already been active. Earlier reports, including one by Bloomberg News, suggested that Diageo has been seeking a valuation of up to $2 billion for its stake in the franchise. Interest in the sale has quickly gathered attention from several high-profile business figures. Among them is Adar Poonawalla, CEO of the Serum Institute of India, who described RCB as a “great team” provided the valuation is right.

This transition comes at a time when India’s regulatory environment surrounding alcohol branding and sports sponsorship is facing increased scrutiny. The Ministry of Health has intensified efforts to restrict surrogate advertising through major sporting properties, which directly affects visibility strategies for a company like Diageo. Refining their sports asset portfolio appears to be part of adapting to this landscape.

The RCB franchise has experienced ownership changes in the past. It was originally among the founding IPL teams and was initially owned by Vijay Mallya. Diageo took control of the franchise after acquiring his United Spirits business following challenges surrounding Mallya’s Kingfisher Airlines in 2012.

With the franchise widely recognized for its massive and passionate fan base, the potential sale marks the beginning of an important new chapter in the RCB story.