Diageo Fetches £1.3 Billion Selling Royal Challengers Bengaluru, 12x Original Investment
Diageo agreed to sell its Royal Challengers Bengaluru IPL and WPL cricket franchise for £1.3 billion, marking a twelvefold rise from its $111.6 million 2008 purchase. The sale, via United Spirits Limited following its 2025 IPL title, concludes a strategic review of non-core assets.
1. Franchise Sale Details
Diageo’s Indian unit United Spirits Limited has agreed to sell its entire 100% stake in Royal Challengers Sports Private Limited, owner of the Royal Challengers Bengaluru IPL and WPL teams, for £1.3 billion. The deal finalizes a bidding process launched in November 2025 and is expected to close in the coming weeks.
2. Investment History and Valuation Growth
The franchise was originally acquired for $111.6 million in 2008, with Diageo taking control of United Spirits in 2012–13. Following the team’s first IPL title in 2025, the sale price reflects a roughly twelvefold appreciation over the initial outlay.
3. Strategic Rationale
Diageo has characterized the cricket franchise as non-core to its global beverages business. Proceeds from the sale are likely earmarked for debt reduction, shareholder returns or reinvestment in its core spirits and beer operations.