According to individuals acquainted with the situation, Diageo Plc is considering alternatives for its investment in the Indian Premier League's Royal Challengers Bangalore cricket team. According to sources familiar with the situation, the British distiller has been seeking advice from potential advisors about alternatives, such as the possibility of selling all or part of the Royal Challengers Bengaluru cricket team, according to Bloomberg. According to the sources, Diageo may seek a valuation of up to $2 billion for the team through its Indian division, United Spirits Ltd. The sources, who requested anonymity because the discussions are private, went on to say that no final decision has been made and that the business could decide to maintain ownership.

A representative for United Spirits did not return calls for comment, while a Diageo spokesperson declined to speak. On Tuesday morning, United Spirits shares reached a five-month high, rising by as much as 3.3% in Mumbai trading as rumors of a possible deal spread. India's health ministry is attempting to outlaw the promotion of tobacco and alcohol companies in the IPL and restrict sports personalities from indirectly supporting harmful goods at the same time as the negotiations.

In India, tobacco and alcoholic beverages are prohibited from being advertised openly, but Diageo and other businesses have utilized well-known cricketers to market other goods, such as soft drinks. Beer baron Vijay Mallya first purchased RCB, one of the founding teams of the Indian Premier League. Diageo gained control of RCB through its takeover of Mallya's spirits company after his Kingfisher Airlines Ltd. went bankrupt in 2012 as a result of unpaid debts.

Winner of the IPL

Led by their star player, Virat Kohli, who has one of the biggest social media followings of any athlete in the world, RCB recently won their first IPL championship. A sad stampede in Bengaluru, during RCB's victory celebration, where the venue was overcrowded, resulted in at least 11 fatalities, and the franchise's ownership is still being debated. The incident has drawn criticism from local officials, increased scrutiny of event security, and raised the reputational stakes for the franchise's owner.

Team ownership has become one of the most sought-after assets in the world of sports due to the IPL's skyrocketing valuations. A prospective sale of RCB could set a new standard for upcoming agreements in one of the fastest-growing sports leagues worldwide. The IPL is now comparable to the commercial size of the National Football League and the English Premier League, having evolved into a worldwide advertising and entertainment empire. Hundreds of millions of people throughout India and the globe are captivated by its short, three-hour games.

Tariffs and a drop in consumer spending have slowed premium liquor sales in the United States, Diageo's largest market. Selling Royal Challengers Bengaluru might free up cash for the company to concentrate on optimizing its operations and reassessing its non-core assets globally.

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