United Spirits Limited, the Indian unit of British alcoholic beverage giant Diageo, on Tuesday announced the sale of Royal Challengers Bengaluru (RCB), one of the founding clubs of Indian Premier League, for £1.3 billion.
The announcement comes just days before the start of the lucrative T20 cricket tournament on Saturday.
The franchise, which won the IPL for the first time last year, was sold to a consortium of investors, including US asset management giant Blackstone.
United Spirits launched a strategic review of its 100 per cent holding of the Bengaluru franchise in November, labelling the team "non-core" to its primary alcohol business.
Praveen Someshwar, chief executive at United Spirits, said the deal was a milestone "as we sharpen focus on our core beverage alcohol business to unlock its true potential with sustained growth."
In a statement, the acquiring consortium said it was "proud to become custodians of RCB."
The group includes Bolt Ventures, run by leading sports investor David Blitzer, Indian media conglomerate The Times of India Group, along with Blackstone and Indian corporate giant Aditya Birla Group.
RCB's "championship-winning culture" and its connection to the southern city of Bengaluru and "one of the most passionate fanbases in world sport make this an extraordinary opportunity."
"We are committed to taking RCB to new heights, on the pitch and beyond."
RCB's continent-spanning bidding war had drawn interest from global private equity firms KKR and Blackstone, Indian tycoons Adar Poonawalla, CEO of vaccine maker Serum Institute of India and Manipal Education and Medical Group chairman Ranjan Pai, as well as Manchester United co-chairman Avram Glazer.
The IPL, the world's richest cricket league, counts Bollywood stars and Indian tycoons among its backers but is now attracting major private equity firms with the prospect of rapidly rising revenue and profits and massive viewership globally.
Key factors driving investor interest in the league are a doubling in the value of broadcast rights to more than $6bn (£4.5bn) in the most recent auction in 2022, rising franchise revenues and the Indian cricket board BCCI's pooled revenue-sharing model that bolsters team revenues.
RCB's acquisition encompasses both the men's IPL franchise and the Women’s Premier League franchise and is subject to customary closing conditions, including approval from the Board of Control for Cricket in India and the Competition Commission of India.
Earlier this year, RCB's women's team won their second Women's Premier League title.
The franchise reported revenue of $56 million (£41.8m) for 2024-25, a 73 per cent increase over a three-year period.