Key Takeaways
- • EQT AB has entered the auction for Royal Challengers Bengaluru with a binding offer valued between $2.0 billion and $2.1 billion, substantially exceeding earlier non-binding proposals and positioning itself as a leading contender for one of cricket's most valuable franchises.
- • The bidding process has narrowed significantly, with Avram Glazer (Lancer Capital) and Adar Poonawalla withdrawing from the race as valuations climbed, leaving institutional investment heavyweights as primary remaining competitors.
- • Diageo plc, through subsidiary United Spirits Limited, initiated the strategic divestment of Royal Challengers Sports Private Limited in late 2025, which owns both the men's IPL franchise and women's Premier League team, with binding offers expected imminently and deal completion targeted shortly thereafter.
- • The transaction represents a landmark valuation for IPL franchises and global sports properties, with the winning bid expected to position new ownership ahead of the 2027 IPL season while current management continues through 2026.
- • The sale process, managed by Raine Group (advisor for Chelsea and Manchester United transactions), attracted approximately nine to ten qualified bidders progressing to final binding offer stage, with final completion targeted by March 31, 2026.
Summary
EQT AB has formally entered the competitive auction for Royal Challengers Bengaluru, submitting a binding offer valued between $2.0 billion and $2.1 billion for the Indian Premier League franchise. The Swedish private equity firm's entry intensifies a global bidding race for one of cricket's most valuable and highest-profile sports properties, according to reports citing sources familiar with the transaction.
The franchise sale process, initiated by Diageo plc through its subsidiary United Spirits Limited as part of a strategic review of non-core assets launched in late 2025, has attracted a diverse pool of global financial and strategic bidders. The transaction encompasses ownership of both the men's Royal Challengers Bengaluru IPL team and its women's Premier League counterpart. Diageo indicated in regulatory filings that the divestment process should be finalized by March 31, 2026, with binding offers expected imminently.
The bidding field has undergone significant consolidation in recent weeks. Avram Glazer, owner of Manchester United and principal of Lancer Capital, initially submitted a non-binding proposal valued at approximately $1.8 billion but has withdrawn from the process as valuations escalated. Similarly, Adar Poonawalla, CEO of Serum Institute of India, has exited the auction despite earlier public expressions of interest. These high-profile withdrawals have narrowed the competitive field to institutional investment heavyweights, with approximately nine to ten parties advancing to the binding offer stage.
The $2 billion valuation threshold represents a historic benchmark for IPL franchise valuations and positions Royal Challengers Bengaluru among the most valuable sports properties globally. Current ownership structures will remain in place through the 2026 IPL season, with new ownership expected to assume operational control ahead of the 2027 campaign. The sale is being managed by Raine Group, the advisory firm responsible for the multi-billion dollar transactions involving Chelsea FC and Manchester United, underscoring the scale and complexity of the process.
The franchise sale process, initiated by Diageo plc through its subsidiary United Spirits Limited as part of a strategic review of non-core assets launched in late 2025, has attracted a diverse pool of global financial and strategic bidders. The transaction encompasses ownership of both the men's Royal Challengers Bengaluru IPL team and its women's Premier League counterpart. Diageo indicated in regulatory filings that the divestment process should be finalized by March 31, 2026, with binding offers expected imminently.
The bidding field has undergone significant consolidation in recent weeks. Avram Glazer, owner of Manchester United and principal of Lancer Capital, initially submitted a non-binding proposal valued at approximately $1.8 billion but has withdrawn from the process as valuations escalated. Similarly, Adar Poonawalla, CEO of Serum Institute of India, has exited the auction despite earlier public expressions of interest. These high-profile withdrawals have narrowed the competitive field to institutional investment heavyweights, with approximately nine to ten parties advancing to the binding offer stage.
The $2 billion valuation threshold represents a historic benchmark for IPL franchise valuations and positions Royal Challengers Bengaluru among the most valuable sports properties globally. Current ownership structures will remain in place through the 2026 IPL season, with new ownership expected to assume operational control ahead of the 2027 campaign. The sale is being managed by Raine Group, the advisory firm responsible for the multi-billion dollar transactions involving Chelsea FC and Manchester United, underscoring the scale and complexity of the process.
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