Rumours of the Royal Challengers Bengaluru (RCB) being on sale surfaced just days after the franchise claimed its maiden Indian Premier League (IPL) title after beating Punjab Kings in Ahmedabad. However, the owners, Diageo India, an Indian branch of UK-based Diageo Plc, categorically shut the rumours as they told the Bombay Stock Exchange (BSE) and BSE Surveillance Department on Tuesday that the reports were merely speculative in nature.
Earlier, a Bloomberg report indicated that the British distiller has been in discussion with potential advisers on selling part or all of the club. Diageo owns the team through its Indian unit, United Spirits Ltd., and may seek a valuation of as much as $2 billion.
However, the rumours were ended in a mail to the BSE, with Mital Sanghvi, the company secretary, informing the regulating body of the Indian Stock Market, "The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion. This is for your information and records."
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Diageo is registered with the BSE and hence a mail was sent to the company as the rumours around the RCB had lifted the share price. Shares of United Spirits gained as much as 3.3%, to hit a five-month high, in Mumbai trading on Tuesday morning following the report on potential deal.
{{/usCountry}}Diageo is registered with the BSE and hence a mail was sent to the company as the rumours around the RCB had lifted the share price. Shares of United Spirits gained as much as 3.3%, to hit a five-month high, in Mumbai trading on Tuesday morning following the report on potential deal.
{{/usCountry}}The rumours emerged at a time when India's health ministry is keen on banning the promotion of tobacco and alcohol brands in the IPL. While advertisement of such products are strictly prohibited in India, Diageo have promoted other products such as soda using top cricketers.
The discussions also emerged at a time when RCB found themselves in the midst of a controversy after the unfortunate incident outside the Chinnaswamy on June 4. The franchise had arranged a celebration in the city a day after the IPL win, which saw around 2.5 lakh fans gathering in and around the home stadium in Bengaluru. But all turned into a chaos as a stampede saw 11 people losing their lives, while 56 were left injured. The incident has drawn criticism from local authorities and increased scrutiny over event safety, adding pressure on the franchise's ownership as it faces reputational risks tied to the tragedy.