Royal Challengers Bangalore (RCB) is on sale, and five strong contenders have emerged to buy the franchise rights for the 2025 Indian Premier League champions, with Adar Poonawala leading the way. According to reports, Poonawala's Serum Institute is also on the list of potential buyers, which also includes Gautam Adani's Adani Group, Parth Jindal through JSW Sports and a Delhi-based businessman.
Notably, Diageo India, the current majority stakeholder, is interested in selling a part of its stake through a private placement of shares. It is currently unclear about the valuation at which the deal has been signed, but if rumors are to be believed, the Bengaluru-based franchise could be asking for a valuation of at least US$2 billion as per the latest term sheet.
“It is understood that multiple Indian and US parties are in talks with Diageo management and some of them, the publicly listed Adar Poonawala of Serum Institute and Parth Jindal of JSW Group, are also believed to be interested in acquiring it. Adani Group and a renowned Delhi business tycoon with interests in multiple sectors are also believed to be keen to acquire it. Apart from the above four, two US-based private equity firms are also considering it. Options,” Cricbuzz said in its report.
Notably, JSW Group's Parth Jindal already owns half the shares of another IPL franchise Delhi Capitals. And if the RCB deal is to go through for Jindal, he will have to sign a sale agreement for his stake in the Capitals. On the other hand, Adani could be seen entering the IPL business after narrowly missing out on the bid for the Ahmedabad team in 2022, which eventually went to CVC Capital.
However, why is Diageo selling RCB?
It is noteworthy that the cost of running an IPL team is becoming higher with each passing season, while the valuation of the league has taken a huge hit, especially after the ban on real money gaming applications. Diageo, which owns and operates the liquor segment as its core business activity, has no interest in running an IPL franchise, this is also one of the major reasons behind the interest for sale.
Get every cricket update! Follow us,
Leave a Reply