Diageo India has dismissed media reports claiming it plans to sell its entire stake in Royal Challengers Bengaluru (RCB). A Bloomberg report earlier suggested Diageo might sell the IPL team, valued at up to $2 billion, to focus on its liquor business amid advertising pressure from the Health Ministry.
RCB’s parent company deny claims
The Ministry is cracking down on surrogate advertising during popular events like IPL. Diageo, which uses soda brand extensions for visibility, could be affected by these new norms. In a statement to the Bombay Stock Exchange, Diageo India called the media reports “speculative” and denied any such discussions. They said, “The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion.”
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The speculation came just days after Royal Challengers Bengaluru won their first-ever IPL title, beating Punjab Kings in the final on June 3. Sadly, the celebration turned tragic. A stampede outside the Chinnaswamy Stadium left 11 dead and over 30 injured while fans gathered to celebrate the win. The team was inside celebrating at the time.
