Is RCB up for sale? Lalit Modi, the former IPL chairman, feeds rumors and forecasts record worth

One of the most well-known teams in the Indian Premier League, Royal Challengers Bengaluru (RCB), is allegedly about to undergo a big ownership transition. Just months after RCB won their historic first IPL title earlier this year, former IPL chairman Lalit Modi sparked weeks of rumors that the team’s owners will probably take the club off their balance sheet and sell it.

A possible business development that could change the IPL scene currently coincides with RCB’s first IPL title victory, which was highly welcomed by cricket professionals and fans alike.

The sale of a @iplt20 franchise, notably @royalchallengers.bengaluru, has been the subject of numerous rumors. In the past, offers were denied, but it seems the owners have finally decided to take it off their balance sheet and sell it.” On Monday, September 29, Lalit Modi stated in a post on Instagram.

“With a large fan following, a top-notch team, and an outstanding management structure, it may be the only franchise available in its whole after winning the IPL the previous season. A sovereign fund or one of the major international funds would undoubtedly be keen to incorporate them into their investment plan. This is the best possible investing opportunity. I wish whoever gets it luck. It will undoubtedly establish a new benchmark for valuation and reaffirm that the IPL is the most valuable and fastest-growing international sports league. The new price set by #RCB will become the floor price for all teams.”

According to a report in June, Diageo Plc, which holds RCB through United Spirits Ltd., had initiated preliminary talks with advisers to evaluate various exit options, including a full sale.

In a podcast last month, Lalit Modi spoke on behalf of former Australia captain Michael Clarke, saying that RCB would be foolish to sell for less than USD 2 billion if it choose to do so. He predicted that the valuation may hit USD 2.5 billion if the sale took place the following year.

With a significant social media following and Virat Kohli as the team’s spokesperson, RCB is one of the most marketable franchises.

RCB’s journey, from its original purchase by Vijay Mallya to Diageo’s acquisition, has been marked by high-profile players and strong branding. But the team has never claimed a championship until this year. Their maiden title has only enhanced the team’s appeal to potential investors.

The potential sale is made more significant by the IPL’s standing as a major commercial and athletic force. The league is compared by observers to major leagues like the English Premier League (EPL) in the UK and the National Football League (NFL) in the US. A high-value RCB transaction might set a new standard for IPL franchise pricing.

A Bloomberg report claims that strategic commercial and regulatory factors impacted Diageo’s possible choice. Pressure from the government to restrict indirect alcohol advertising in sports could limit the visibility of brands like Diageo. The catastrophic stampede that killed several people during RCB’s public victory celebration has also drawn more attention.