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Diageo Denies RCB Sale Reports, Calls Them ‘Speculative’ in Statement to BSE
Clarification Issued Amid Rising Speculation After IPL 2025 Win
In the wake of a viral report suggesting a potential sale of the Royal Challengers Bengaluru (RCB) franchise, Diageo India, the owner of the IPL team, has officially dismissed such claims. The clarification came via a formal letter submitted to the Bombay Stock Exchange (BSE) and its Surveillance Department on June 10, 2025, where the company described all reports of the RCB sale as speculative in nature.
This response came after Bloomberg reported that Diageo might be exploring strategic options to sell the RCB franchise, a claim that created buzz across media platforms and among investors.
Media Reports Stir Speculation About RCB Ownership
Official Statement to BSE Counters Rumors
Mital Sanghvi, Company Secretary at Diageo India, stated in the letter:
“The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion. This is for your information and records.”
This formal communication came in response to an inquiry made by the Bombay Stock Exchange, seeking clarification after the rumors caused visible market movement.
Following these reports, the shares of United Spirits, a Diageo-owned entity and registered BSE company that owns RCB, witnessed an upward trend—fueled by speculation of a major transaction in the IPL ecosystem.
Victory and Tragedy Sparked Market Attention
RCB’s historic IPL title win on June 3, their first since the league’s inception in 2008, dramatically increased public and media interest in the franchise. However, the euphoria was marred by a tragic incident in Bengaluru on June 4, where celebrations took a dark turn, resulting in 11 fatalities and multiple injuries. In the aftermath, RCB officials have remained silent, choosing not to issue public statements.
Read more on RCB’s IPL 2025 title journey and celebrations
Valuation and Rumored Sale Price Stir Debate
Industry insiders have indicated that if Diageo were to initiate a sale, the valuation of the RCB franchise could exceed USD 2 billion. While some experts argue that the valuation is inflated, others, including Lalit Modi, the founder of the IPL, believe that the figure is realistic—especially given RCB’s longstanding brand equity and massive fan base.
“I wouldn’t be surprised if RCB is sold for even more than $2 billion,” Modi told Cricbuzz. “The Gujarat Titans deal is not comparable since it involved a new franchise and was signed under different market conditions.”
In contrast, Torrent Group’s purchase of the Gujarat Titans for approximately INR 7,500 crore (~USD 1 billion) was used by critics to argue that a $2 billion valuation might be overambitious. However, Modi contended that RCB’s legacy, star-studded rosters, and market pull justify a premium.
Diageo’s Clarification: A Strategic or Temporary Response?
While Diageo has publicly denied any ongoing negotiations, some financial analysts believe the language used in the statement leaves room for future developments. A seasoned IPL administrator commented:
“Public companies often face reputational pressures, especially following tragic incidents or controversies. It’s possible the company is simply deflecting the heat for now.”
Bloomberg’s report also stated that sources close to the situation indicated no final decision has been made, and the possibility of shelving the sale remains open.
For more on this, refer to Bloomberg’s original report.
While Diageo India has dismissed the reports as speculative, the future of Royal Challengers Bengaluru’s ownership remains a topic of considerable public and investor interest. With mounting pressure from recent events and a dramatic shift in franchise valuations, only time will tell whether Diageo reconsiders its stance.
Stay tuned for further developments as the RCB ownership saga unfolds.
