The Royal Challengers Bengaluru (RCB)is on sale, and five strong contenders to purchase the franchise rights for the 2025 Indian Premier League champions have come to the fore, Adar Poonawalla being the front-runner. According to reports, Poonawalla's Serum Institute is also in the list of potential buyers that also include Gautam Adani's Adani Group, Parth Jindal via JSW Sports, and a Delhi-based businessman.
Notably, Diageo India, the current majority stakeholders, are interested in selling off
a part of their holdings through a private placement of shares. It is currently unclear regarding the valuation at which the deal is signed, but if rumours are to be believed, the Bengaluru-based franchise may seek a value of at least US $2 billion for the latest term sheet.
"It is understood that quite a few Indian and American parties have had conversations with the Diageo management and some of them, as out in the public, are Adar Poonawala of Serum Institute and Parth Jindal of the JSW Group. The Adani Group and a famous business tycoon based out of Delhi with interests in multiple sectors are also believed to be keen on acquiring it. Apart from the four mentioned above, two private equity companies based in the US are also weighing options," Cricbuzz said in its report.
Notably, Parth Jindal of the JSW Group already owns half the shares for Delhi Capitals, another IPL franchise. And if the RCB deal has to go through for Jindal, then he will have to sign a sale agreement for his stake in the Capitals. On the other hand, Adani may finally be seen entering the IPL business after marginally missing out in the bid for Ahmedabad's team in 2022, which eventually went to CVC Capital.
Why is Diageo selling RCB, though?
It is worth mentioning that the costs of running an IPL team are getting higher with each passing season, whereas, the valuation of the league has been hit hard, especially after the ban on real money gaming applications. Diageo, which owns and operates into the liquor segment as its main business activity, does not seem to be interested in running an IPL franchise, also being one of the key reasons behind the interest for sale.
