RCB sold for $1.8bn in major IPL franchise deal

A consortium led by Blackstone and backed by David Blitzer’s Bolt Ventures has agreed to buy Royal Challengers Bengaluru for about $1.8 billion, marking one of the biggest deals in cricket franchise history.

The group, which also includes Aditya Birla Group and The Times Group, is acquiring the team from United Spirits, a subsidiary of Diageo. The all-cash transaction values the franchise at Rs166.7 billion.

The deal highlights the growing global appeal of the Indian Premier League, which has become one of the world’s most lucrative sports competitions since its launch in 2008. Prominent figures such as Mukesh Ambani and Shah Rukh Khan are among existing franchise owners.

Diageo originally gained control of RCB through its acquisition of a majority stake in United Spirits in 2012. The sale is expected to help the company reduce debt as it undergoes restructuring under CEO Dave Lewis.

United Spirits said the move would allow it to focus more on its core alcohol business, while noting that RCB has grown into one of the most commercially successful teams in both the IPL and the women’s league.

For Blackstone, the deal represents its first investment in a sports franchise, reflecting a broader trend of private equity firms increasing their presence in the sports sector. Other firms such as Apollo Global Management and Ares Management have also made significant investments in sports teams and related businesses.

The sale comes amid growing scrutiny over the future value of IPL media rights, which have surged dramatically over the years and currently form the majority of franchise revenues. Analysts expect growth to stabilize in the next cycle due to fewer competing broadcasters.

The transaction is subject to regulatory approvals from Board of Control for Cricket in India and Competition Commission of India before completion.