United Spirits (USL), the Indian arm of global liquor company Diageo Plc, has accelerated the process of selling its subsidiary Royal Challengers Sports Private Limited (RCSPL). This company owns the popular IPL team Royal Challengers Bengaluru (RCB). According to sources close to the matter, USL has sought preliminary or non-binding offers by the beginning of February.
Why does United Spirits want to sell RCSPL?
The move follows RCSPL’s strategic review process, which began in November. It is expected to be completed by March 31, 2026. RCSPL is being considered as a non-core asset for USL’s Alcobev business. RCB participates in both the Men’s IPL and the Women’s Premier League (WPL), which are organized by the BCCI every year.
RCB becomes premium asset, more than 50 NDA signed
According to sources, RCB, which won the IPL trophy last year, is a high-value asset. There is tremendous interest in the current sales process. More than 50 NDAs (Non-Disclosure Agreements) have been signed so far. These include Indian strategic investors, global sports funds, private equity funds, sovereign wealth funds, NRI entrepreneurs and high net worth individuals.
Demand for $2 billion valuation
According to a third source, initial bids for RCB have been sought by early February. The sell side is looking for a valuation of around $2 billion for 100 percent stake in RCSPL.
Some potential buyers are estimating the value of the company between $1.5 to $1.7 billion. After due diligence, the picture regarding valuation will be clear at the binding bid stage. Investment bank Citi is handling this deal.
Adar Poonawalla’s entry
On October 9, 2025, Adar Poonawalla, CEO of Serum Institute of India and Chairman of Poonawalla Fincorp, wrote on the social media platform X that RCB is a great team at the right valuation. Last week he made his interest public, saying that he would make a strong and competitive bid for RCB in the coming months.
Investors can form consortium
Signing an NDA does not mean that all parties will make firm bids. According to another source, many investors may consider forming a consortium and bidding in future, because this deal is very big and a big check will have to be written in it.
Possible partnership of Manipal Group, KKR and Temasek
According to sources close to the deal, Dr Ranjan Pai of Bengaluru-based Manipal Group has held advanced talks with American private equity giant KKR. The plan is to form a consortium with KKR as the lead partner. Singapore investment company Temasek can also join as a third investor if needed. A source associated with JSW Group clarified that this group is neither in the race for RCB nor Rajasthan Royals.
Round of M&A in IPL, eye on other teams also
Apart from RCB, the process of selling stake in other IPL teams is also going on. In December 2025, Moneycontrol had reported that there are preparations to sell majority stake in Rajasthan Royals, the target valuation of which has been kept at more than $ 1 billion. The Raine Group has been made the advisor for this deal.
Who are the stakeholders in Rajasthan Royals?
According to reports, British-Indian businessman Manoj Badale’s Emerging Media Ventures holds about 65 percent stake in Rajasthan Royals. RedBird Capital Partners holds about 15 percent and other investors like Fox Corporation’s Lachlan Murdoch are also involved. If Badale wants, he can give up control by keeping a partial stake with himself.
Stake in KKR will also be sold
On December 18, 2025, Moneycontrol had reported that a partial stake sale in Kolkata Knight Riders (KKR) is also being planned. KKR is owned by Knight Riders Sports Private Limited.
In this, Bollywood star Shahrukh Khan’s Red Chillies Entertainment holds 55 percent. At the same time, Mehta Group has 45 percent stake. This team was purchased in 2008 for about $75 million.
IPL is attracting investors
According to Houlihan Lokey’s ‘IPL Valuation Study 2025’, the business value of IPL has increased from $15.4 billion to $18.5 billion by 2023. At the same time, the brand value has increased from $3.2 billion to $3.9 billion.
According to the study, RCB is on top in terms of brand value with $269 million. This is followed by Mumbai Indians, Chennai Super Kings and Kolkata Knight Riders.
Low cost, high revenue model
The report said that IPL franchises get strong and stable revenues due to BCCI’s long media rights contracts and pre-fixed sponsorships. Top teams earn Rs 650 to 700 crore annually, out of which about 80 percent of the earnings are decided even before the start of the tournament.
Talking about expenses, the salary cap of Rs 120 crore per team prevents wage inflation. This maintains balance between all the teams. Also, infrastructure like stadium is provided by BCCI, due to which the model of franchises becomes capital light and returns are better.
Why is IPL special for investors
According to the report of Houlihan Lokey, IPL is not just a sports league but a high-growth business in the entertainment sector. The rapidly growing fan base, rising disposable income and demand for premium content on digital platforms make it extremely attractive for investors.