Diageo has set a deadline of March 31, 2026, for final bids on its 65% controlling stake in Royal Challengers Bengaluru, a move that could potentially fetch up to $2 billion. This decision comes as the franchise is considered one of the most valuable sports properties in the subcontinent, with a significant revenue surge of 73% following their title win in 2025.
Currently, two parties are in contention for the purchase: a consortium led by EQT and another led by Ranjan Pai, Kohlberg Kravis Roberts and Co. (KKR), and Temasek. The Glazer family and Adar Poonawalla had previously shown interest but have reportedly maxed out their offers at $1.8 billion.
Royal Challengers Bengaluru, owned by Diageo through United Spirits, has been a prominent name in the Indian Premier League (IPL). The franchise will kick off its 2026 season with a match against Sunrisers Hyderabad on March 28, 2026, just days before the bidding deadline.
Despite its value, Diageo regards the franchise as non-core to its drinks interests, even though it serves as a significant advertisement for the Royal Challenge Indian whisky brand. The impending sale reflects a strategic shift for Diageo, focusing on its primary beverage business.
The current binding bids for the franchise are estimated between $1.5 billion and $1.7 billion, indicating strong interest from investors eager to capitalize on the lucrative IPL market.
As the deadline approaches, the competitive landscape for the franchise is expected to intensify, with potential bidders looking to secure a stake in one of the most popular teams in the cash-rich IPL.
RCB remains one of the most valuable sports properties on the subcontinent, potentially the most popular team in the cash-rich IPL. This popularity underscores the high stakes involved in the ongoing bidding process.
Details remain unconfirmed regarding the final bids and the outcome of the negotiations, but the implications of this sale could reshape the ownership landscape of IPL franchises.
