New Delhi, March 25 The sale of the cricket franchise, Royal Challengers Bangalore, by United Spirits Ltd (USL), is valued at nearly USD 2 billion (₹18,776 crore), considering it also includes a ₹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 ₹16,660 crore (nearly USD 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 the Women's Premier League (WPL), it added.
“The enterprise value of the deal is close to ₹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).
RCSPL’s revenue was ₹504 crore in FY25 and contributed 1.9 per cent to the topline of Diageo India, which has brands such as Johnnie Walker, Black Dog, Black & White, VAT 69, Antiquity, Signature, The Singleton, Royal Challenge, McDowell’s Smirnoff, and Tanqueray.
USL expects the deal to be completed in the next six months, subject to the fulfillment of the terms of the SPA.
“Subject to the fulfillment 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 evolved into a global sporting powerhouse that has transformed Indian cricket, creating immense value for India. RCB, as one of the most compelling franchises in modern sport, offers the Aditya Birla Group a unique 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 our 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 that 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 that 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 under Diageo after it took over Mallya's liquor business, United Spirits Ltd.