Royal Challengers Bengaluru (RCB) becomes the costliest franchise ever in the history of the Indian Premier League (IPL). Ahead of season 19, the defending champions have been acquired by the highly reputed consortium for a jaw-dropping deal worth USD 1.78 billion (approximately INR 16 crore).
The multi-industry consortium led by a group of Indian and foreign investors brings together the Aditya Birla Group, Times of India Group, Blackstone, and Bolt Ventures in the most expensive transaction in the history of T20 cricket.
RCB, formerly owned by Diageo— the parent company of the United Spirits Limited (USL), secured a massive profit from the franchise sale, earning 16 times higher than its original purchase value in 2008.
Interestingly, the consortium has bagged the ownership deal for the Women’s Premier League (WPL) team as well.
Consortium Members Who Own RCB Now
Here are those four high-profile groups having invested hefty funds to own RCB following the UK-based Diageo’s exit from the ownership deal:
- Aditya Birla Group (ABG): India’s one of the most reputed conglomerates with stakes in cement, metals, financial services, and telecom.
- Times Group: India’s leading media giant bolsters the consortium with powerful media and digital influence.
- Bolt Ventures: American investor and founder of Bolt Ventures, David Blitzer, known for his ownership of teams like the Philadelphia 76ers (Basketball) and the New Jersey Devils (ice hockey), adds immense experience to the global sporting industry.
- Blackstone Private Equity Strategies (BXPE): The global giant in alternative asset management is set to make a long-term investment in India’s sports growth by joining the RCB’s ownership group.
RCB’s New Ownership Structure
- Chairman (Aryaman Birla): ABG Chairman Kumar Mangalam Birla’s son, Aryaman Birla, will now serve as the new chairman of RCB.
- Vice-Chairman (Satyan Gajwani): The Times Internet Limited Chairman, Satyan Gajwani, will be appointed as RCB’s vice-chairman.
Why Diageo Sold RCB For USD 1.78 Billion Deal?
With rising valuations of IPL teams and the controversial stampede incident last year, June, Diageo has shifted its focus from non-core business like sports ownership to solely on the primary alcohol business.
RCB Outbeats RR Deal to Become the Costliest IPL Franchise Ever
A mammoth deal of $1.78 billion pushed RCB ahead of the Rajasthan Royals (RR), the franchise that secured $1.63 billion (INR 15,290 crore) from the US-based entrepreneur Kal Somani.
Back in the inaugural edition of IPL 2008, Bengaluru was the second costliest team at that time when Vijay Mallya-owned United Breweries Group acquired the franchise for $111.6 million.
The WPL’s inauguration in 2023 saw Bengaluru becoming the third most expensive franchise out of the five women’s teams as the owners bid a massive sum of $110 million (INR 901 crore).
Aditya Birla Chairman Opens Up About the New Deal
Kumar Mangalam Birla, the chairman of Aditya Birla Group, feels excited to build an outstanding legacy when his son Aryaman Birla takes over the role as RCB chairman:
“Yeah! For the past two decades, IPL has become a global powerhouse of sports that has reshaped the standards of Indian cricket. RCB has been one of the most powerful franchises in the modern era of sports.
This is an opportunity for Aditya Birla Group to expand its legacy into sports. It is a proud moment for us to become the holders of the ownership role and are committed to building a remarkable legacy with the franchise,” Kumar Mangalam said.
Times Internet Limited Chairman’s Promise to Support RCB
Moments after the news was announced officially, Satyan Gajwani, the chairman of Times Internet Limited, reassured fans and stakeholders about RCB’s future under new ownership:
“Certainly! There is no doubt that RCB is the most popular brand in the IPL. The Times of India Group, along with our partners, has collaborated with RCB to build the franchise into a global sporting powerhouse, while staying rooted to Bengaluru, Karnataka, and its passionate fanbase.
We honor the players, leadership, coaches, and ardent fans who shaped this winning culture and promise to support the team as they begin their title defense journey on Saturday,” Gajwani said.
Final Opinion
RCB’s 16,000 crore deal highlights the growing stature of IPL as the most profitable sports league at the international level. The last season recorded a viewership of nearly one billion, including the digital platforms and television channels, ranking it as the most viewed sporting event across the globe.
Most importantly, the limited number of teams in the Indian franchise T20 cricket, added with the massive fan base and surging media revenues, will certainly increase the franchise valuation higher season by season.
With IPL teams estimated to generate yearly profits around INR 100 to 200 crore or even higher, several investors (including Indian and overseas) are attracted to generate hefty funds. Before the consortium officially takes charge of RCB’s ownership rights, the Board of Control for Cricket in India (BCCI) and the Competition Commission of India need to approve the sale clearance of the big business deal.