Both the men’s and women’s teams will now be “owned and operated” by the consortium.
A consortium made up of Indian and international companies has acquired 100% ownership rights to the franchise known as Royal Challengers Bangalore for an estimated USD$1.78 billion (approximately ₹16,660 crore). The purchase is an all-cash transaction and was completed with formal announcement made by United Spirits Ltd (USL), the current owners of the franchises in both the Indian Premier League and Women's Premier League.
Per an official press release from USL, their Board of Directors has voted and approved the sale of the franchise being managed by a consortium including: Aditya Birla Group, Times Of India Group, Bolt Ventures and BXPE (Blackstone's perpetual private equity strategy). After closing this transaction, USL confirmed both RCB franchises, which were managed via USL's subsidiary Royal Challengers Sports Pvt. Ltd., will both now be operated (owned and managed) only by the Consortium.
This transaction is huge, with more value than both of the IPL franchises that were sold by the BCCI in 2021 (Lucknow + Ahmedabad) being worth INR 12,715 crores or roughly USD 1.69 billion. Also, the consortium hadn't yet been finished or announced back in February; however, at this time, they had shortlisted eight potential investors for RCB which has both their Men's & Women's teams as IPL/WPL champions, respectively. In November of 2022, Diageo, the global beverage leader with USL in India, indicated through its November filings to the Securities & Exchange Board of India (SEBI) that they’re undergoing a strategic review of their investment in RCB because they consider cricket to be a non-core business area and expect to complete the transaction by March 31. The immediate next step is for the BCCI to give regulatory approval along with the Competitive Commission of India before the consortium can officially take control of this franchise.
Since the 2008 start of the IPL, RCB has been a part of it as the second most expensive franchise purchased by the United Breweries Group of Vijay Mallya for U.S. $111.6 million. In 2023, RCB's owners have acquired the Bengaluru franchise of the Women's Premier League, with a bid of Rs 901 crore (around U.S. $110 million), which makes it the third most expensive out of five women's teams. A consortium that purchased RCB stated Aryaman Birla, who has played as a batsman for Madhya Pradesh in the IPL ( and also played as a member of the Rajasthan Royals IPL team ), will be the chairman while Satyan Gajwani, of the Times of India Group, will be the vice-chairman. The consortium expressed pride in being the steward of RCB. The consortium states that they see the acquisition as an excellent opportunity due to RCB's winning culture, close ties to Bengaluru and its passionate fans, making this acquisition special. The consortium is also committed to improving the franchise both on and off of the field.
The consortium itself consists of a variety of experienced, successful, and established investors, namely: (i) Aditya Birla Group - a global conglomerate that operates in many industries including metals, cement, apparel and retail; (ii) Bolt Ventures, which is owned and managed by David Blitzer (one of the largest sports investors globally) and has ownership interests in numerous professional sports clubs throughout various leagues such as the English Premier League (EPL), National Basketball Association (NBA), National Hockey League (NHL), National Football League (NFL), Major League Baseball (MLB), and Major League Soccer (MLS); (iii) Blackstone Group - the largest alternative asset manager globally, with investments across various asset classes, including real estate, private equity, credit, infrastructure, life sciences, and hedge funds; and (iv) Times of India Group is a major media powerhouse in India and also has ownership stakes in teams participating in Major League Cricket and The Hundred.
The historic acquisition of Royal Challengers Bengaluru for about $1.78 billion by a consortium of prominent Indian and international business organizations represents an important milestone in the development of franchise cricket through the evolution of franchises. This all-cash acquisition has been sanctioned by United Spirits Limited (a major shareholder of RCB) and provides full ownership and the operational control of the IPL and WPL teams to the new RCB consortium members. These member organizations are prominent leaders in their respective industries: Aditya Birla Group, Times of India Group, Bolt Ventures and Blackstone BXPE strategy. The transaction indicates the significant and consistent commercial success of RCB as well as RCB's global brand, and reflects and endorses the fast-growing sports business ecosystem in India. This monetary value for this current transaction exceeds the combined previous sales prices for both the new franchises located in Lucknow and Ahmedabad, thereby underscoring the increasing level of investor confidence in cricket as a long-term investment asset class. The RCB consortium will be able to proceed with their plan of significant growth of RCB through its large, passionate fan base, championships and positioning in the market once they receive regulatory approval. This significant transaction demonstrates a broader trend that sports franchises are now being seen as high-value business and entertainment assets with the potential for global growth.
FAQs
1. What is the total value of the RCB sale deal?
The Royal Challengers Bengaluru franchise was sold for approximately USD 1.78 billion (around INR 16,660 crore), making it one of the most valuable deals in IPL history.
2. Who are the new owners of RCB?
The franchise has been acquired by a consortium consisting of the Aditya Birla Group, Times of India Group, Bolt Ventures, and Blackstone’s BXPE strategy.
3. Does the deal include both men’s and women’s teams?
Yes, the acquisition includes full ownership and operational control of both the IPL (men’s) and WPL (women’s) RCB teams.
4. Why did United Spirits Limited sell RCB?
United Spirits Limited decided to sell the franchise as part of a strategic review, as its parent company, Diageo, considers cricket a non-core business area.
5. What approvals are required before the deal is finalized?
The transaction still requires approval from the BCCI and the Competition Commission of India before it is officially completed.
6. How does this deal compare to previous IPL franchise sales?
This deal exceeds the combined valuation of the Lucknow and Ahmedabad franchises sold in 2021, highlighting a significant rise in IPL franchise valuations.
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