IPL: RCB up for sale? Owners Diageo are likely to charge...

Drama and RCB seem to be like Siamese twins that are stuck together forever. There might never have been a professional sporting team that has endured so much off the field just after winning silverware. Close on the heels of the tragic stampede during their victory celebrations in Bengaluru, comes reports that RCB's owners Diageo Plc are planning to put the franchise up for sale. While the extent of the valuation or the stakes available are yet to be confirmed, this development comes across as a surprise. A report from Bloomberg suggests that Diageo may demand a figure as high as USD 2 billion for the complete takeover.

Diageo, the British distiller, is the parent company of United Spirits in India, formerly owned by Vijay Mallya, who had to forego his ownership after falling into debt. It was in 2014 that Diageo took a significant stake in United Spirits, which remains the official owner of the franchise. From a financial point of view, Diageo is hoping to cash in on the value of RCB's title win, which was their first IPL trophy, a silverware that ended a 17-year wait for glory. According to NDTV Sports, the stock prices increased by 3.3 per cent on Tuesday morning. Diageo are currently holding discussions with its financial advisers regarding the matter.

According to the Economic Times, Diageo could have been led to this plan due to the current situation of their primary market in the USA, where the tariffs and consumer slowdown have caused a decline in revenue. With the popularity of the IPL surging every year, valuations of the franchises are constantly on the rise. Put the two scenarios together and it isn't hard to understand why Diageo are pondering over this move. Currently, India's health ministry is also strongly advocating for a ban on tobacco and alcohol promotions in the IPL. The government has also been pushing to prevent the promotion of unhealthy commodities by sports personalities.

As things stand, selling the RCB franchise isn't a definitive decision by the owners, but it is an option they are keen on pursuing, particularly if a tempting offer comes to the table. This possible ownership change news comes a day after the Karnataka government's plans to relocate the M. Chinnaswamy Stadium in the aftermath of the stampede that occurred during RCB's victory celebrations on June 4. The franchise is also facing an FIR lodged against them by the Bengaluru Police, who have also charged the event management company DNA and the Karnataka State Cricket Association (KSCA) in the stampede case.

Meanwhile, RCB and DNA have separately approached the Karnataka High Court to challenge the FIRs lodged against them in connection with the stampede issue. With the case taking on a significantly political tone, the current scenario regarding RCB's home venue and ownership has a lot of mystery surrounding it. The coming weeks could give us a clearer picture of the whole scenario.