IPL: IS RCB REALLY WORTH $2 BILLION?

Diageo India is reviewing its investment in the Bengaluru IPL team, and more teams might also be up for sale

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Earlier this year, the RCB men's side ended an agonizing title drought of 18 years. That sporting high turned into a low when a stampede ensued in the victory parade outside its home stadium in Bengaluru, killing 11 people.

On 5 November, United Spirits Ltd (better known as Diageo India) informed the stock exchanges that it was "initiating a strategic review" of its investment in its 100% subsidiary that owns the two Royal Challengers Bengaluru (RCB) cricket franchises.

The liquor major was considering whether to stay invested in the business of running cricket teams or not.

The names of potential suitors being floated in unconfirmed media reports to buy one of the 10 teams of the marquee Indian Premier League (IPL) included the promoters of the Adani Group, Manipal Group, Serum Institute of India and Zerodha.

As is often the case these days, the chatter on social media preceded the filing. On 1 October, more than a month before United Spirits made its filing, Adar Poonawalla of Serum Institute had posted on X: "At the right valuation, @RCBTweets is a great team..."

A couple of weeks later, unconfirmed media reports said even the owners of the Rajasthan Royals, another IPL team, were looking at a sale. Industrialist Harsh Goenka posted on X on 27 November: "I hear, not one, but two IPL teams are now up for sale-RCB and RR. It seems clear that people want to cash in the rich valuations today..."