Global spirits giant Diageo, through its Indian subsidiary United Spirits Limited (USL), has unequivocally denied recent media reports suggesting a potential sale of its stake in the Indian Premier League (IPL) franchise Royal Challengers Bengaluru (RCB). The company, a prominent fixture in both the beverage and sports industries, issued a clear statement to the Bombay Stock Exchange (BSE), terming such reports as “speculative in nature” and confirming that “it is not pursuing any such discussions.”
The clarification comes hot on the heels of intense speculation, fueled by a Bloomberg report, which indicated that Diageo was exploring options to divest part or all of its ownership in the wildly popular IPL team. These reports even hinted at a potential valuation of up to $2 billion (approximately ₹17,000 crore) for the franchise, especially after RCB’s historic maiden IPL trophy win on June 3, 2025. The buzz had led to a notable uptick in United Spirits’ share price, which climbed over 3% to a five-month high on Tuesday morning before the official denial.
Diageo, which acquired ownership of RCB as part of its purchase of Vijay Mallya’s spirits business, has been the team’s owner since 2016. RCB, one of the original IPL franchises, boasts a massive fan following and is home to global cricketing superstar Virat Kohli, whose immense social media presence further amplifies the team’s brand value.
The speculative reports had also emerged amidst increasing regulatory scrutiny from India’s Union Health Ministry, which is reportedly pushing to curb indirect advertising of alcohol brands during major sporting events like the IPL. While direct advertising of liquor is prohibited in India, companies like Diageo often promote surrogate products, such as soda, featuring high-profile cricketers.
The recent denial by Diageo aims to put an end to the market frenzy and establish clarity regarding the ownership of the IPL champion team. The company’s statement emphasizes its current stance, reinforcing that there are no active discussions or plans to sell its stake in the Royal Challengers Bengaluru. This decisive communication underscores Diageo’s commitment to its existing portfolio and strategy in the Indian market.
Key Highlights:
- Diageo, through its subsidiary United Spirits, has officially denied recent media reports about a potential sale of its stake in the IPL franchise Royal Challengers Bengaluru (RCB), labeling them as “speculative.”
- The denial follows a Bloomberg report suggesting Diageo was considering selling RCB, potentially valued at up to $2 billion, especially after the team’s recent IPL trophy win.
- The speculation had temporarily boosted United Spirits’ stock price, but Diageo’s statement clarifies that no such discussions are currently underway.
- The news also comes amid regulatory pressure from the Indian Health Ministry regarding indirect advertising of alcohol brands during sports events like the IPL.