RCB sold 2024: Royal Challengers Bengaluru fetch $1.78bn from new owners

James Okafor | GlobalBeat

Royal Challengers Bengaluru said on Monday the Indian Premier League franchise had been sold to a new ownership group for $1.78 billion.

The buyers consist of Indian private equity firm Everstone Capital and Singapore-based infrastructure fund Temasek, the club confirmed.

The transaction is the second-highest price paid for an IPL team since the Twenty20 league began in 2008. Only the Mumbai Indians have been valued higher, at $2.1 billion in 2022.

“The board approved the transfer of 100 percent equity to the new consortium,” RCB said in a filing to the Bombay Stock Exchange.

United Spirits, the Diageo-controlled liquor company that has owned RCB since inception, will receive the proceeds. The deal ends the conglomerate’s 16-year control of the Bengaluru-based side.

RCB won their first IPL title in May by beating Delhi Capitals in the final. The victory ended a title drought that had become a talking point around the league.

Everstone managing director Sachin Dhir told reporters the firm planned to expand the franchise’s digital and merchandising operations. “We see strong monetisation potential beyond match-day revenue,” he said.

The private equity house manages $7 billion in Indian assets including restaurant chain Barbeque Nation and logistics firm Ecom Express.

Temasek already owns stakes in Indian airline IndiGo and telecom tower provider ATC India. The sovereign fund manages $287 billion globally.

IPL governing council chairman Arun Singh Dhumal said the sale showed continued investor confidence. “Valuations keep rising because the league keeps growing,” he said.

RCB went 16 seasons without a championship after joining the league for an original franchise fee of $111 million. Their victory parade in Bengaluru in May drew an estimated 750,000 fans.

Broadcast revenue has driven franchise values. The IPL sold its 2023-27 media rights to Disney Star and Viacom18 for $6.2 billion, a three-fold increase on the previous cycle.

Rival team owners include Reliance Industries (Mumbai Indians), JSW Group (Delhi Capitals) and the publicly traded India Cements (Chennai Super Kings).

RCB’s social media following of 45 million across platforms trails only Mumbai’s 55 million, according to digital analytics firm Convosight.

The sale requires approval from competition regulators and could close within 90 days, bankers familiar with the process said.

Jefferies India advised United Spirits on the transaction. Deloitte conducted financial due diligence for the buyers.

RCB’s valuation translates to $14.8 million per match based on the current IPL schedule of 14 league games per season plus potential playoffs.

Background

The Indian Premier League began in 2008 with eight franchises sold for a combined $723 million. RCB was originally bought by Vijay Mallya’s United Spirits for $111 million, making it the third-most expensive team behind Mumbai and Chennai.

League revenues have surged through sponsorship and media deals. Annual title sponsorship income rose from $12 million with DLF in 2008 to $145 million with Tata from 2024. Star India paid $2.55 billion for worldwide television and digital rights for 2018-22, then lost the 2023-27 package to a Disney Star-Viacom18 split that cost a combined $6.2 billion.

What’s Next

The new owners take control with the IPL mega-auction set for December ahead of the 2025 season. Player retention rules allow franchises to keep a maximum of 4 players, forcing RCB to decide whether to retain captain Faf du Plessis and star batter Virat Kohli within a combined purse of $12 million per team.

The transaction fuels debate over whether record franchise prices will translate into higher ticket prices and subscription fees for fans already paying up to $50 for prime seat categories. RCB’s average home attendance at the 40,000-capacity M Chinnaswamy Stadium exceeded 90 percent in 2024, club data showed.