Interestingly, Diageo‘s move comes at a time when the team is at its highest point in the 18-year history of IPL. I wonder what the future holds for RCB
Trucks for sale! Two billion US dollars, which is about Rs. 17,600 crores.
This is the price set by Diageo Great Britain, the British manufacturing and distribution company that owns Indian Premier League franchise Royal Challengers Bengaluru. Diageo’s move comes at a time when the team is at its highest point in the 18-year history of the IPL. Why Diageo is set to ditch RCB Who is there to buy? What is the reason for determining this huge amount?
The reason behind the move
Diageo took ownership of RCB in 2012. This also comes as United Spirits Ltd is being taken over by Diageo amid the collapse of Vijay Mallya’s business empire. The presence of legends like Virat Kohli, AB de Villiers, Chris Gayle, Mitchell Starc and Dale Steyn helped RCB gain global attention. But the new moves of Diageo will happen by the beginning of 2025.
Behind this is the new presence at the head of Diageo India, Praveen Someshwar. Praveen will take charge as the Managing Director and CEO of Diageo India in March 2025. Praveen Someshwar has taken the stand that even considering the size and acceptance of RCB’s brand, cricket is not something that is aligned with the company’s core business. Praveen Someshwar feels that an IPL team is something that requires a huge investment and is not conducive to the company’s long-term plans.
Diageo also believes that divesting RCB will improve the company’s core business. Vijay Mallya once said that the motive behind RCB was to advertise liquor. However, the Union Health Ministry had banned even indirect advertisements of alcohol and tobacco products in sports venues including IPL. With this, Diageo will lose visibility.
Who buys?
Serum Institute of India CEO Adar Poonawala, JSW Group’s Parth Jindal and Adani Group are in the running to acquire RCB. Apart from this, there are reports that a prominent Delhi-based businessman and two other American companies are interested in acquiring the team. The Poonawala family tried to acquire an IPL team in 2010, but it did not happen.
JSW is a group that has invested in another team in the IPL itself. 50 percent shares of Delhi Capitals are held by the Jindal Group. It is believed that the group will have to divest from Capitals if it wants to take over RCB. If something like this happens, Delhi’s situation will also worsen. The Adani Group has also been chasing the dream of an IPL team for a long time. The opportunity for this was prepared in 2022 but it was not possible.
One of the things that bothers interest groups is the amount. The question that arises is whether an IPL team is worth that much. This is supposed to be forward thinking. Mainly considering media rights etc. There is also some concern ahead as to how much it will rise or reverse in the coming years. Jio and Hotstar, who were last time’s biggest rivals when it comes to media rights, are currently united, so it is doubtful whether the next bid will fetch a huge sum and increase in value.
