Diageo Sale of Royal Challengers Cricket Team Could Land $2 Billion

Diageo has launched its sale of Royal Challengers Bengaluru, one of the most popular cricket teams in the Indian Premier League, a source with direct knowledge of the situation said.

Books have gone out for the Royal Challengers, but it’s unclear when bids are due, the person said. The Royal Challengers, which saw their popularity soar after winning the Indian Premier League title in 2025, could sell for as much as $2 billion, according to press reports.

United Spirits, Diageo’s Indian subsidiary, has tapped Citigroup to advise on the Royal Challengers process, the person said.

Adar Poonawalla, the CEO of Serum Institute of India, said he would “be putting in a STRONG and COMPETITIVE bid for @RCBTweets, one of the best teams in the IPL,” according to a Jan. 22 post on X. It’s unclear if Poonawalla bid for the team.

In November, United Spirits confirmed it was conducting a strategic review of its investment in the Royal Challengers, because the team is considered non-core to its ”alcobev business,” according to a statement. The process is expected to conclude by the end of March.

The sale of Royal Challengers Bengaluru is expected to attract private equity firms and strategic investors. A year ago, CVC Capital Partners sold a 67% stake in the Gujarat Titans cricket club to Torrent Group for $575 million.

While the Royal Challengers auction has just started, the sale of another cricket franchise, the Rajasthan Royals, has advanced to the second round.

Four groups were invited to proceed, including a consortium led by Satyan Gajwani, chairman of Times Internet, and a group backed by entrepreneur Kal Somani, have made offers, Bloomberg reported last month, with the Somani group making a preliminary $1.3 billion bid for the Rajasthan team.

It’s unclear who else made it to the second round.

The Rajasthan Royals auction has generated interest from the 49ers Enterprises, the investment arm of the San Francisco 49ers. It is unclear if the 49ers made an offer.

Blackstone, the large alternative asset manager, has also taken an initial look at the team, a different person familiar with the situation said.

Bloomberg reported Carlyle Group was also exploring a bid.

Raine Group is advising on the Rajasthan Royals process, people familiar with the situation said. Emerging Media Ventures, the sports investment platform of Blenheim Chalcot, owns a majority stake in the Royals, while RedBird Capital Partners and Tiger Global have minority stakes.

Soaring team valuation have spurred interest from private equity and strategic investors in the sports asset class. The NFL is the most popular sport in the U.S., with the Dallas Cowboys considered the most valuable sports team in the world. The Cowboys were pegged at about $13 billion, according to Sportico’s 2025 NFL franchise valuations.

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