Delhi Capitals might be ditched for Royal Challengers Bengaluru, franchise sale dynamics draw interesting equations

Cricbuzz reports that Diageo has engaged banks, including Citi, and received interest from six parties. Besides Jindal’s JSW Group, potential bidders include Adar Poonawalla, Adani Group, a Delhi-based industrialist, and two US private equity firms, with valuations approaching $2 billion.

The cross-ownership challenge

The IPL’s regulatory framework explicitly prohibits simultaneous ownership of multiple franchises. Historical tender processes, particularly from 2015 onwards, established eligibility criteria preventing bidders from holding interests in competing teams. For Jindal to acquire RCB, a complete exit from the Delhi Capitals becomes mandatory.

The Delhi Capitals currently operate as a 50-50 joint venture between JSW Sports and GMR Sports. This structure offers flexibility to the JSW Group; they could divest their 50% stake to GMR or a third-party buyer, subject to BCCI approval. The clear cap-table structure and documented operational arrangements make such a transaction commercially viable.

JSW’s interest in RCB carries compelling strategic logic. The group already owns Bengaluru FC, creating an established city-wide infrastructure for sponsorship activation and fan engagement. Integrating RCB into JSW’s Bengaluru ecosystem would generate significant brand synergies across the group’s diverse portfolio.

In the current scenario, two structural approaches appear viable: a sequential exit from DC followed by RCB acquisition, or a conditional purchase agreement contingent on DC divestment completion before IPL 2026 operational deadlines. BCCI Governing Council approval would follow after conflict resolution.

Valuation remains pivotal in what the future of the RCB would be. With seller expectations near $2 billion and multiple sophisticated bidders circling, JSW must assess whether the premium pricing justifies simultaneous DC exit costs. Additionally, while Diageo termed sale speculation in June, sustained reporting through October suggests evolving dynamics.

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