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ReutersRoyal Challengers Bengaluru team United Spirits, India’s biggest liquor company, said it has started a strategic review of its investment in Royal Challengers Sports, which owns the Royal Challengers Bengaluru (RCB) cricket franchise.The wholly owned subsidiary owns the rights to the RCB teams competing in both the men’s Indian Premier League (IPL) and the women’s Women’s Premier League (WPL), two of the most high-profile annual tournaments by the Board of Control for Cricket in India (BCCI).USL said the review process is expected to conclude by March 31, 2026, which could mean anything from evaluating strategic options for the franchise, including a potential sale, restructuring, or new partnership arrangement “RCSPL has been a valuable and strategic asset for USL, however it’s non-core to our alcobev business,” said Praveen Someshwar, Managing Director and CEO of United Spirits in a stock exchange filing. “This step reinforces USL’s and Diageo’s commitment to continue reviewing its India enterprise portfolio to enable sustained delivery of long-term value to all its stakeholders, while keeping RCSPL’s best interest in mind.”The move aligns with parent Diageo’s broader global strategy of streamlining its portfolio and sharpening focus on its core alcoholic beverage operations. The Royal Challengers brand has been among the most commercially successful franchises in the IPL, having a strong fan base and significant sponsorship deals.Live EventsAnalysts say the review could attract interest from sports investors and private equity firms seeking exposure to India’s booming cricket economy, valued at several billion dollars and continuing to expand with new media rights deals and league formats.*We believe there is a high probability of a sale. Global consumer companies are increasingly monetising non-core assets to fund buybacks or strengthen balance sheets: recent examples include BAT, Whirlpool and Bata. Unlike United Spirits, no other large alcohol beverage companies globally own sports franchises; their preferred brand visibility comes via media spots, sponsorships, or surrogate advertising," said Abneesh Roy, executive director at Nuvama Institutional Equities.Experts also said If RCB were sold and continued to operate as a standalone corporate entity, dividends would be distributed pro-rata to all shareholders, including minority investors and the parent. "That said, consummating a transaction would require multiple layers of approvals — from the BCCI, regulators, and potentially FDI/FEMA clearances if foreign buyers are involved," added Roy.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onunited spiritsRoyal Challengers SportsUnited SpiritsRoyal Challengers BengaluruIndian Premier LeagueWomen’s Premier Leaguesports investmentcricket economyRCB franchise saleprivate equity firms (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onunited spiritsRoyal Challengers SportsUnited SpiritsRoyal Challengers BengaluruIndian Premier LeagueWomen’s Premier Leaguesports investmentcricket economyRCB franchise saleprivate equity firms(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
