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Diageo PLC, the British Spirits giant is exploring the possibility of selling all his participation in the IPL Royal Challengers Bengaluru (RCB) franchise.
Earlier this month, Bengaluru’s dress won its title IPL. The skateboarded side beat Punjab Kings for 6 runs in an exciting final at the Narendra Stadium Modi. A few days after RCB won its IPL of single, Diageo PLC seeks to form forms of the franchise, according to Bloomberg. The British company owns the team through its Indian subsidiary, United Spirits Ltd.
The company has already begun discussions with advisers. The report stated that the franchise could be valued up to $ 2 billion. The movement of the British company comes when it faces the regulatory pressure of the Ministry of Health of the Union to curb indirect advertising of alcohol for major sporting events such as IPL.
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The company has historically used soda and non -alcoholic brand extensions to maintain visibility under existing restrictions. However, even this strategy could be banned from strictest advertising rules.
“The Indian Premier League (IPL), being the most watched sporting event in India, sends a contradictory message to the public about health and physical form when it allows direct or indirect promotion of tobacco and alcohol,” the ministry said in a statement earlier this year.
The enormous attractiveness of the RCB market:
Although Diageo wants to sell his participation in the RCB, the franchise is still one of the most popular teams in the league. The recent victory will only improve the growing popularity of the team. The presence of a Kohli shot on the team also provides a great deal of appeal to the market, especially on digital platforms.
The franchise is one of the eight original teams founded by the BCCI before the start of the IPL in 2008. The team was owned by the liqueur liqueur Vijay Mallya. Later, Diageo took over the team after taking over the Bully Basked Spirit Empire.
The report added that the British company is tempted to sell RCB due to the growing value of the franchise. Things do not go well for the company currently due to a decrease in premium liquor sales in its largest market, the United States. As a result, it seeks to sell the IPL franchise to release funds and focus on its main operations.
