United Spirits Limited is reportedly considering selling a part of its stake in the Indian Premier League (IPL) franchise Royal Challengers Bengaluru (RCB), aiming for a potential valuation of around Rs 17,000 crore, according to a Bloomberg report. While no final decision has been made, the company may also decide against the sale. United Spirits has not officially commented on the development.
Ownership structure of RCB explained:
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Current Ownership: RCB is owned by United Spirits Limited (USL), a leading Indian alcoholic beverages firm, which is a subsidiary of global spirits giant Diageo. While USL handles day-to-day operations, the ultimate control lies with Diageo.
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Original Purchase: The team was originally bought by Vijay Mallya in 2008 for Rs 476 crore, making it the second-most expensive franchise at the time. Mallya, then chairman of USL, branded the team around Royal Challenge whiskey and Kingfisher beer.
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Transition of Control: After Mallya exited USL in 2016 following legal troubles, control of the RCB franchise was fully taken over by United Spirits under Diageo’s direction.
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Corporate Leadership: Prathmesh Mishra currently serves as chairman of Royal Challengers Sports Pvt. Ltd., which operates the team. He also holds the position of chief commercial officer at Diageo India.
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Women’s Team Success: United Spirits also owns the Royal Challengers Bangalore Women’s team, which recently secured the Women’s Premier League (WPL) title.
A potential stake sale could unlock significant value, especially given RCB’s large fan base and commercial traction across both men’s and women’s cricket formats.
