Diageo Plc, the global alcoholic beverages giant, is reportedly evaluating its stake in the Indian Premier League (IPL) franchise Royal Challengers Bengaluru RCB). Sources close to the matter suggest the company is in early-stage discussions with financial advisors to explore strategic options, which may include a partial or full divestment of the team.

RCB, one of the founding franchises, is run by Diageo’s Indian arm, United Spirits Ltd. Insiders indicate that the British multinational is eyeing a potential valuation as high as $2 billion for the team. However, no definitive course of action has been decided, and Diageo may ultimately choose to retain ownership. The deliberations remain confidential, and both Diageo and United Spirits have declined to publicly comment on the matter.

This potential move comes against the backdrop of growing regulatory scrutiny in India. The Ministry of Health has intensified calls to eliminate indirect advertising of alcohol and tobacco through sports, particularly in cricket, which commands massive viewership. Though direct advertising of such products is banned in India, companies have often promoted alternative product lines using star athletes.

The history of RCB traces back to Indian businessman Vijay Mallya, who originally purchased the franchise. His airline business, Kingfisher Airlines, collapsed in 2012, leading to a broader restructuring of his business empire. Diageo acquired RCB when it took control of Mallya’s liquor assets under United Spirits.

RCB recently clinched their maiden IPL title, adding fresh commercial appeal to the team. Their marquee player, Virat Kohli, remains one of the most followed sports personalities globally, significantly boosting the brand’s visibility and market value.

Franchise valuations across the IPL have surged, driven by rising media rights, massive digital viewership, and growing international appeal. A sale of RCB could reset market benchmarks and attract global interest, further cementing the IPL’s status among the world’s elite sports leagues alongside the NFL and EPL.

With challenging economic conditions in key markets like the USA, where premium liquor sales are under pressure, Diageo appears to be reevaluating its portfolio. Offloading a high-value sports asset like RCB could release capital and allow greater focus on core operations amid broader restructuring efforts.