Diageo firmly denied the rumours, telling the BSE that the reports were purely speculative.
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RCB Sale Rumours Debunked by Owners
Rumours of Royal Challengers Bengaluru (RCB) being up for sale surfaced days after their maiden IPL title win against Punjab Kings in Ahmedabad. However, Diageo India, the franchise’s owner and an Indian arm of UK-based Diageo Plc, swiftly denied the reports.
Responding to speculation, Diageo informed the Bombay Stock Exchange (BSE) and its Surveillance Department that the reports were purely speculative and no discussions about a sale were underway. Earlier, a Bloomberg report suggested Diageo was considering selling part or all of the team, potentially valuing it at up to $2 billion.
Mital Sanghvi, company secretary, clarified in an official statement to BSE: “The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion.” The rumours had briefly boosted United Spirits’ shares by 3.3%, reaching a five-month high in Mumbai trading.
Tobacco and Alcohol Promotions Under Scrutiny Amidst IPL Tragedy
Rumors surfaced amid India’s health ministry pushing to ban tobacco and alcohol brand promotions in the IPL. While such advertisements are already prohibited, companies like Diageo have been promoting alternative products, such as soda, using top cricketers.
These discussions coincided with a controversy surrounding Royal Challengers Bangalore (RCB) following the tragic stampede outside the Chinnaswamy Stadium on June 4. The franchise’s celebration event attracted around 250,000 fans, but chaos ensued, resulting in 11 deaths and 56 injuries. The tragedy has led to criticism from local authorities and heightened scrutiny on event safety protocols. This incident has also increased pressure on RCB’s ownership due to potential reputational damage linked to the disaster.
