$2 Billion Worth? RCB Could Get New Owners Amid Chinnaswamy Stampede Saga

RCB owners, Diageo Plc., may sell the team after a tragic stampede overshadowed their 2025 IPL title winning celebrations in Bengaluru.

$2 Billion Worth? RCB Could Get New Owners Amid Chinnaswamy Stampede Saga

RCB's current owners Diageo Plc. might seel their stakes in the franchise. (via Economic Times)

2025 IPL winners Royal Challengers Bengaluru might soon get a new owner, with Diageo Plc. reportedly looking into selling its shares in the franchise. These reports have surfaced merely days after a fatal stampede in Bengaluru overshadowed RCB’s IPL trophy celebrations.

RCB secured its inaugural IPL title this season, defeating Punjab Kings by a narrow six-run margin in the final held at the Narendra Modi Stadium in Ahmedabad on June 3. The team proceeded with a celebratory event in Bengaluru on June 4. However, RCB’s IPL victory celebrations at the M. Chinnaswamy Stadium turned sour, after overcrowding led to a tragic stampede outside the venue, claiming 11 innocent lives.

Fans caught in the stampede, claimed mismanagement and the lack of facilities as a reason for the deadly occurrence. The incident drew sharp criticism from both the BCCI and local authorities, resulting in the arrest of several RCB officials. It also increased pressure on the team’s current owners, British spirits company, Diageo PlC., regarding the franchise’s role in managing safety during the event.

To safeguard its public image and reputation, Diageo has supposedly decided to sell a part of its stake, or its full stake in the IPL-winning franchise. A recent report indicated that this review of future ownership might be part of a broader strategy to simplify its global operations, amidst rising tariff concerns and a decline in worldwide alcohol product sales. Selling a stake in RCB could help the company significantly.

Bloomberg most recently reported that Diageo, which owns RCB through its Indian subsidiary, United Spirits Limited, has initiated early discussions with its advisers. While the company is yet to make a final call, insiders have claimed that the owners have valued the team at $2 billion. News of RCB’s potential sale affected the Indian stock market, with United Spirits’ shares increasing by almost 3.3 percent.

Another major reason, many speculate, that could have forced Diageo to consider selling its stake, is the growing pressure from the health ministry to ban all indirect alcohol and tobacco advertising, in sporting events like the IPL. While direct advertising of these products is already banned in India, companies like Diageo have traditionally used other products, such as soda and water, to promote their brands.

RCB was initially bought by former billionaire Vijay Mallya, then owner of United Spirits and Kingfisher Airlines, in 2008. However, Mallya’s business empire crumbled, as a result of which Diageo Plc. acquired United Spirits, thereby gaining control of the team as well. An ownership race could definitely attract interest from suitors across the world, owing to the growing popularity and financial clout of the IPL.

What’s Next for RCB? Speculation rises over the franchise’s potential new owners

Current RCB owner Diageo Plc.’s reported interest in selling their stake in the franchise could spark a major bidding war for control of the team. Royal Challengers Bengaluru remains the most popular IPL side, boasting the largest social media fan base.

RCB new owners
Adani Group and the Glazer family might be interested in bidding for RCB, in case of a potential case. (via Sky Sports)

Should the franchise go up for sale, the Adani Group is expected to be a leading bidder, given their failed bids for Gujarat Titans and Lucknow Super Giants in 2021. The Adani Group has a notable presence in the sports world, owning six teams across four different sports, including the WPL side Gujarat Giants and the ILT20 team Gulf Giants, while also having sponsored India’s 2016 and 2020 Olympics contingents.

Apart from the Adani Group, Kotak Group, Capri Global Holdings and Championship Cricket LLC (owned by Avram Glazer, who also owns football club Manchester United) were notable bidders in 2021. They could be interested in buying a stake in the franchise.