Diageo, the multinational alcoholic beverage company and owner of Royal Challengers Bengaluru teams in IPL and WPL, has taken the first steps towards divesting its stake in the franchise.
In a filing with India's market regulator, the Securities and Exchange Board of India (SEBI), on Wednesday, Diageo said it was conducting a "strategic review" of its investment in RCB through Royal Challengers Sports Private Limited (RCSPL) - the parent company that owns the men's and women's teams. The review is expected to be completed by March 31, 2026, the end of India's financial year (RCSPL is a fully owned subsidiary of United Spirits Ltd. (USL) which in turn is owned by Diageo).
"RCSPL has been a valuable and strategic asset for USL; however, it is non-core to our alcobev (alcohol and beverages) business," said Praveen Someshwar, Managing Director & CEO of United Spirits, in the SEBI filing. "This step reinforces USL and Diageo's commitment to reviewing our India portfolio to ensure sustained long-term value for stakeholders, while keeping RCSPL's best interests in mind."
The move comes amid Diageo's struggles in its core global business, which has been under significant pressure in recent years. In a SEBI filing in June this year, the company had denied reports of RCB's sale, with USL's company secretary Mital Sanghvi calling them "speculative". However, with Diageo now facing headwinds globally, that stance appears to have shifted.
Speculation about a potential divestment had intensified after the >fatal stampede outside Bengaluru's M. Chinnaswamy Stadium in June, a day after RCB won their maiden IPL title.
Among the most popular IPL teams, RCB was the second most expensive franchise when the tournament was launched in 2008. Vijay Mallya, then chairman of USL bought the franchise for USD 111.6 million in 2007 before he stepped down as director in 2016, with Diageo becoming the whole owner of the company.
ESPNcricinfo has reached out to Rajesh Menon, vice-president and head of RCB for comment.
The development, though, will not have any impact on RCB's planning for the upcoming seasons of both WPL and IPL including the auctions. Any new owner will also need to get clearance from the IPL and the process is likely to stretch beyond the 2026 IPL season. While the WPL is scheduled to start in January, the IPL will start in March and run through May.