RCB deal nears $2 billion with Rs 540 crore payout for WPL

The sale of cricket franchise Royal Challengers Bangalore (RCB) by United Spirits Ltd (USL) almost tops a record $2 billion (Rs 18,776 crore), considering it also includes a Rs 540 crore payout for the Women’s Premier League and a 5 per cent commission to the cricket body BCCI by the consortium of buyers, according to sources.

On Tuesday, USL, part of multinational alcoholic beverages company Diageo, announced the sale of its 100 per cent equity stake in Royal Challengers Sports Private Ltd (RCSPL) to a consortium in a Rs 16,660 crore (nearly $1.7 billion) all-cash deal.

The acquiring consortium includes Aditya Birla Group, The Times of India Group, Bolt Ventures (a private investment platform of David Blitzer, one of the most prominent sports investors in the world), and Blackstone, the world’s largest alternative asset manager.

RCSPL owns and operates the Royal Challengers Bangalore (RCB) franchise that participates in the Indian Premier League (IPL) and Women’s Premier League (WPL), it added. “The enterprise value of the deal is close to Rs 18,000 crore, adjusted for transaction liabilities to BCCI and debt-like items. That makes it closer to a USD 2 billion valuation,” a source said.

The deal is subject to customary conditions, including the receipt of all prerequisite approvals as required to give effect to the proposed transaction, including from the Competition Commission of India and the Board of Control for Cricket in India, as per the conditions set out in the Share Purchase Agreement (SPA).

RCPL’s revenue was Rs 504 crore in FY25 and had contributed 1.9 per cent in the topline of Diageo India, which has brands as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, The Singleton, Royal Challenge, McDowell’s, Smirnoff, and Tanqueray in its fold.

USL expects the deal to be completed in the next six months, subject to the fulfillment of the conditions of the SPA.

“Subject to fulfilment of terms and conditions as under the SPA, the completion of the Proposed Transaction is expected to occur within 6 months from the date hereof, subject to any extension agreed in accordance with the terms of the SPA,” said USL in a regulatory filing.

The SPA also has a co-existence arrangement governing the usage of certain brand names as between USL and RCSPL, each of which will be entered into only upon completion of the proposed transaction and effective therefrom, it said.

Following the transaction, Aryaman Vikram Birla, Director, Aditya Birla Group, will serve as Chairman and Satyan Gajwani of The Times of India Group will serve as Vice Chairman of the franchise.

Commenting on the deal, Aditya Birla Group Chairman, Kumar Mangalam Birla, said, “Over the past 2 decades, the IPL has morphed to become a global sporting powerhouse that has changed the face of Indian cricket, creating enormous value for India. RCB, as one of the most compelling franchises in modern sport, offers the Aditya Birla Group a distinctive platform to extend its legacy of institution-building into the arena of global sport.”

Satyan Gajwani, Chairman, Times Internet Limited, said: “RCB is the reigning champion and the most popular brand in the IPL. As The Times of India Group, together with our partners, we will build RCB into a global sporting institution, while remaining rooted in Bengaluru and Karnataka and its incredible fanbase.”

USL MD & CEO Praveen Someshwar, said this transaction marks an important milestone for the company, “as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth, and to continue delivering on long-term value creation for our stakeholders.”

RCB has grown into the most prominent and commercially successful franchise in the IPL and WPL, he said, adding it has built a globally recognised brand and a passionate fan base.

In November last year, USL said it would conduct a strategic review of its investment in RCSPL, the entity that owns the IPL T20 team Royal Challengers Bengaluru.

RCSPL’s business comprises ownership of the RCB franchise teams that participate in the Men’s Indian Premier League (IPL) and WPL cricket tournaments hosted by the Board of Control for Cricket in India (BCCI) annually.

RCB, the team which had India’s cricket star Virat Kohli, won its first Indian Premier League last year.

RCB was one of the founding teams of the IPL, which was founded in 2008 by its previous owner, Vijay Mallya. It came into the fold of Diageo after it took over Mallya’s liquor business, United Spirits Ltd.