After Royal Challengers Bangalore’s historic win in the IPL, fugitive businessman Vijay Mallya’s celebratory social media message has left people in large-scale confusion regarding the ownership of the team. Most fans are under the wrong impression that Mallya still owns the franchise, but reality is quite different.
The Bengaluru franchise won their first IPL trophy on June 3rd by defeating Punjab Kings in the final after an 18-year wait. When fugitive declared businessman Mallya spoke of his happiness through his social media post, it generated misunderstandings regarding his ongoing association with the team.
But the truth comes out that Mallya’s involvement with RCB was around a decade ago, and it raises several crucial questions regarding present ownership rights of the franchise.
United Spirits Limited: Current Owner
Royal Challengers Bangalore has been owned by United Spirits Limited (USL), India’s leading manufacturer of alcoholic beverages, since 2015. The organization is run by CEO and MD Praveen Someshwar.
USL is a subsidiary of British multinational corporation Diageo, who is one of the world’s largest manufacturers of spirits and alcohol brands. The company has its headquarters in Bengaluru, coincidentally aligned with the franchise’s native city.
The brand offerings of Diageo and USL include some of the world’s most well-known brands like Royal Challenge, Johnnie Walker, McDowell’s No.1, Signature, Antiquity, Smirnoff, Guinness, and Baileys.
Presently, RCB runs its affairs through Royal Challengers Sports Private Limited, which is the subsidiary company of USL. Prathamesh Mishra is the chairman of this company while still serving as Diageo India’s Chief Commercial Officer. Mishra took over RCB operations in July 2021.
USL’s buyout has greatly enhanced Diageo’s market share in India’s beverage sector.
Mallya’s Original Investment and Vision
Vijay Mallya first bought RCB at the inaugural auction of the IPL in 2008, bidding $112 million (about ₹464 crores), which was then the second highest bid ever.
In a recent podcast chat with YouTuber Raj Shamani, Mallya spoke about his initial investment plan:
“When I bid for RCB in 2008, I saw the IPL as Indian cricket’s game-changer. My idea was to build a team that would reflect Bengaluru’s personality – vibrant, contemporary, and glamorous. We spent approximately $112 million, the second-highest bid at that time. I was fully convinced about this league’s potential. I wanted RCB to be more than a cricket side and a brand. That is why I linked it with ‘Royal Challenge,’ one of our highest-selling alcohol brands, and gave the team a solid, premium profile.”
Current Market Valuation
Based on Brand Finance reports dated December 2023, RCB’s market valuation was at $117 million (more than ₹1000 crores). Experts in the industry project this valuation to rise even more with the recent trophy win by the franchise.
The change of ownership from Mallya to USL is a major corporate transformation in the structure of RCB, ensuring that the franchise continues operation under sound financial support while keeping its association with high-end beverage companies through its parent group’s portfolio.