By Nikhil
Copyright timesnownews
One of the most renowned teams in the Indian Premier League, Royal Challengers Bengaluru (RCB), is allegedly about to undergo a big ownership transition. Just months after RCB won their historic first IPL title earlier this year, former IPL chairman Lalit Modi sparked a massive buzz that the team’s owners will probably take the franchise off their balance sheet and sell it. A possible business development that could change the IPL scene currently coincides with RCB’s first IPL title victory, which was highly welcomed by cricket professionals and fans alike. “There have been a lot of rumours about the sale of an @iplt20 franchise, specifically @royalchallengers.bengaluru. In the past, offers were denied, but it seems the owners have finally decided to take it off their balance sheet and sell it.” Lalit Modi said in an Instagram post on Monday, September 29. “Having won the IPL last season, with a strong fan base, an excellent team and a great management structure, it could be the only franchise available as a whole. I am sure one of the big global funds or a sovereign fund would be eager to include them in their investment strategy. There can be no better investment opportunity than this. Good luck to whoever secures it. It will definitely set a new record valuation and reinforce that the IPL is not only the fastest-growing global sporting league, but also the most valuable. The new price set by #RCB will become the floor price for all teams.” A June article said that Diageo Plc, the company that owns RCB through United Spirits Ltd., has started first discussions with advisors to consider a number of exit strategies, including a complete sale. In a podcast last month, Lalit Modi spoke on behalf of former Australia captain Michael Clarke, saying that RCB would be foolish to sell for less than USD 2 billion if it chooses to do so. He predicted that the valuation may hit USD 2.5 billion if the sale took place the following year. With a significant social media following and Virat Kohli as the team’s spokesperson, RCB is one of the most marketable franchises. From Vijay Mallya’s first ownership of RCB to Diageo’s acquisition, the team has been distinguished by its well-known players and powerful branding. But the team has never claimed a championship until this year. The team’s appeal to possible investors has only increased as a result of their first title. The potential sale is made more significant by the IPL’s standing as a major commercial and athletic force. The league is compared by observers to major leagues like the English Premier League (EPL) in the UK and the National Football League (NFL) in the US. A high-value RCB transaction might set a new standard for IPL franchise pricing. A Bloomberg report claims that strategic commercial and regulatory factors impacted Diageo’s possible choice. Pressure from the government to restrict indirect alcohol advertising in sports could limit the visibility of brands like Diageo. The unfortunate and tragic stampede that killed several people during RCB’s public victory celebration has also drawn more attention.
