Diageo Plc is considering options for its possession of the Indian Premier League cricket franchise Royal Challengers Bengaluru, as per the people familiar with the matter. The British distiller has been possession discussions with potential advisers as it considers chances including a sale of part or all of the club, the people told. Diageo owns the team through its unit of India, United Spirits Ltd., and may look for a valuation of as much as $2 billion, the people told.
Decision is not final and they may decide against selling the team, the people said, asking not to be named as the details are private.
A spokesperson for Diageo declined to comment. A characteristics for United Spirits didn’t respond to requests for comments.
Shares of United Spirits acquired as much as 3.3%, to hit a five-month high, in Mumbai trading on Tuesday morning following the report on potential deal.The discussions come at a time when health ministry has been pushing to ban promotion of tobacco and alcohol brands in the IPL, and stop indirect promotion of other harmful goods by sports person.
Advertising of liquor and tobacco products prohibited in India, but Diageo type firms have promoted other products such as soda using top cricketers.
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IPL Champion
RCB recently won the IPL trophy for the first time. RCB’s biggest star is Virat Kohli who has largest social media followings in the whole world for an athlete.
The IPL’s rapid valuations have made team ownership one of the highest sought-after assets in sports. A sale could set a standard for future deals in what is now one of the world’s fastest-growing sports leagues.
The IPL tournament has evolved into a global entertainment and advertising colossal, disclosing the National Football League and the English Premier League in commercial scale. Due to three-hour matches of short duration draw hundreds of millions of viewers across India and globally.
