RCB on the Block? Lalit Modi Predicts Record-Breaking Sale for IPL Champions

Royal Challengers Bengaluru (RCB), one of the Indian Premier League’s most prominent franchises, is reportedly on the cusp of a significant ownership change. After weeks of speculation, former IPL chairman Lalit Modi suggested that the team’s owners are likely to remove the franchise from their balance sheet and put it up for sale, just months after RCB secured their historic first IPL title earlier this year.

RCB's maiden IPL title triumph, celebrated widely by fans and cricketing stars alike, now coincides with a potential business development that could reshape the IPL landscape.

"There have been a lot of rumours about the sale of an @iplt20 franchise, specifically @royalchallengers.bengaluru. In the past, offers were denied, but it seems the owners have finally decided to take it off their balance sheet and sell it." Lalit Modi said in an Instagram post on Monday, September 29.

"Having won the IPL last season, with a strong fan base, an excellent team and a great management structure, it could be the only franchise available as a whole. I am sure one of the big global funds or a sovereign fund would be eager to include them in their investment strategy. There can be no better investment opportunity than this. Good luck to whoever secures it. It will definitely set a new record valuation and reinforce that the IPL is not only the fastest-growing global sporting league, but also the most valuable. 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.

Speaking for former Australia captain Michael Clarke in a podcast last month, Lalit Modi said that if RCB chose to sell, it would be unwise to do so for less than USD 2 billion. He suggested that if the sale occurred next year, the valuation could reach USD 2.5 billion.

With Virat Kohli being the face of the franchise, RCB are one of the most marketable franchises with a huge following on social media.

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

The IPL’s status as both a sporting and commercial powerhouse adds significance to the prospective sale. Observers compare the league to top competitions such as the National Football League (NFL) in the US and the English Premier League (EPL) in the UK. A high-value RCB sale could establish a new benchmark for franchise valuations across the IPL.

According to a Bloomberg report, Diageo’s potential decision was influenced by regulatory and strategic business considerations. Government pressure to limit indirect alcohol advertising in sports could restrict brand visibility for companies such as Diageo. The tragic stampede at RCB’s public victory celebration, which resulted in multiple fatalities, has also added scrutiny.