Diageo Clears Air on RCB Sale Speculations Following IPL Victory

Diageo Addresses RCB Sale Rumors

Just days after the Royal Challengers Bengaluru (RCB) celebrated their first Indian Premier League (IPL) victory against Punjab Kings in Ahmedabad, rumors regarding the potential sale of the franchise began circulating. However, Diageo India, the parent company of RCB and a subsidiary of the UK-based Diageo Plc, quickly dispelled these speculations.

In a statement to the Bombay Stock Exchange (BSE) and its Surveillance Department on Tuesday, Diageo clarified that the reports concerning a sale were unfounded. The company emphasized that no discussions regarding such a transaction were taking place.

The statement read, 'The company would like to clarify that the aforementioned media reports are speculative in nature and it is not pursuing any such discussion. This is for your information and records.'

This clarification came in response to a Bloomberg report suggesting that Diageo had initiated preliminary discussions with advisors about potentially selling part or all of the RCB franchise, with a rumored valuation of up to $2 billion. Diageo controls RCB through its Indian subsidiary, United Spirits Ltd.

Following the speculation, shares of United Spirits surged by 3.3% on the Mumbai stock exchange on Tuesday morning, reaching a five-month peak. This spike drew the attention of regulators, prompting Diageo to issue a formal notification to the BSE. Company Secretary Mital Sanghvi elaborated on the company's position, highlighting its obligations as a BSE-registered entity, especially since the unverified news had a direct impact on share prices.

These developments coincided with heightened scrutiny of RCB after a tragic incident during a celebration in Bengaluru. On June 4, approximately 250,000 fans gathered at the M. Chinnaswamy Stadium to commemorate the team's IPL victory. What was intended to be a festive event turned chaotic, resulting in a stampede that led to 11 fatalities and 56 injuries.

The incident has sparked criticism regarding event management protocols and has increased pressure on the franchise's ownership, drawing public and administrative focus on safety measures.