Recent reports suggested that Diageo Plc, through its Indian subsidiary United Spirits Ltd, was exploring the possibility of selling a part or all of its stake in the Royal Challengers Bengaluru (RCB) Indian Premier League (IPL) franchise. However, United Spirits Limited has officially refuted these claims, labeling them as speculative and inaccurate. The company responded to inquiries from the Bombay Stock Exchange (BSE) on June 10, 2025, with a categorical denial of any ongoing discussions regarding the sale of its RCB stake.

Initial reports indicated that Diageo had initiated early discussions with potential advisors to evaluate options for the franchise, including a complete sale. It was suggested that RCB could be valued at approximately $2 billion. This speculation arose shortly after RCB's historic IPL victory, their first in 18 years, which significantly boosted the team's brand value.

The reports of a potential stake sale also coincided with increasing regulatory pressure and a strategic shift within Diageo's global operations. The Health Ministry has been advocating for stricter regulations on indirect advertising of alcohol and tobacco products during sports events like the IPL. This increasing scrutiny, combined with Diageo's challenges in its primary markets, particularly the United States, where liquor sales are facing pressure due to tariffs and declining consumer demand for premium alcohol, reportedly contributed to the speculation about a potential sale. Selling the RCB stake would have allowed the company to unlock funds and refocus on its core business activities.

The news of the potential sale had a notable impact on the stock market. Shares of United Spirits saw a surge of up to 3.3% in Mumbai trading on Tuesday morning, reaching a five-month high following the circulation of the reports. This increase reflected investor anticipation and the potential financial gains United Spirits could have realized from such a deal.

RCB, originally owned by Vijay Mallya under United Spirits Limited, transitioned to Diageo's control after Diageo acquired Mallya's spirits business. The franchise has a strong legacy within the IPL, boasting a large and dedicated fan base, largely due to the presence of star players like Virat Kohli.

Adding complexity to the situation, RCB's recent IPL victory celebrations were marred by a tragic stampede in Bengaluru, resulting in multiple fatalities. This incident placed additional pressure on the franchise's ownership, raising concerns about public image and event safety.

Despite these factors and the initial reports, United Spirits' firm denial indicates a strategic decision to retain its stake in RCB. The company's statement emphasizes its commitment to the franchise and dismisses the media speculation as unfounded. While the initial reports fueled excitement and discussions about a potential change in ownership, United Spirits' clarification brings certainty to RCB's future, at least for the time being.