“Why Would I Choose RCB? I Don’t Even Enjoy Royal Challenge”
Karnataka’s Deputy Chief Minister DK Shivakumar has publicly dismissed rumors about his involvement in acquiring the Royal Challengers Bengaluru (RCB) IPL franchise. His comments came after Diageo India, the current owner of RCB, addressed speculation regarding a potential sale of the team. Shivakumar emphasized that he has no interest in the franchise and has not pursued any management roles despite having received offers.
Diageo India Responds to Sale Speculation
In a recent communication to the Bombay Stock Exchange (BSE), Diageo India clarified that reports about selling RCB are unfounded. Company secretary Mital Sanghvi stated that such rumors are purely speculative and that the company is not considering any discussions regarding a sale. This clarification was made in response to inquiries following a surge in United Spirits’ shares, the Diageo-owned company that manages RCB. The market response coincided with a Bloomberg report suggesting Diageo might be contemplating the sale of the franchise.
Impact of Recent Events on RCB
The sale speculation follows RCB’s significant achievement of winning their first IPL title after 17 years, celebrated on June 3. However, the celebrations were marred by a tragic event in Bengaluru the following day, resulting in loss of life and injuries during the festivities. While Diageo has firmly rejected the sale rumors, the ambiguity in their statement has fueled further speculation about the franchise’s future. Experts in the sports business sector suggest that as a publicly listed company, Diageo may face reputational pressures that could influence their decision-making regarding RCB.
Valuation Insights for RCB Franchise
Reports indicate that Diageo may value the RCB franchise at around USD 2 billion. While some analysts consider this valuation to be inflated—especially when compared to the Gujarat Titans, which were acquired for approximately INR 7500 crore (around USD 1 billion)—others believe it to be realistic. Lalit Modi, the IPL’s founder, has also weighed in, stating that a USD 2 billion price tag for RCB is plausible. He emphasized that comparing RCB’s valuation with that of newer franchises like Gujarat Titans is not entirely fair, as the latter’s valuation is based on a much shorter history in the league. Despite the ongoing discussions, the official stance remains that no final decision regarding a sale has been made.
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