Global billionaires line up for majority stake in RCB, Rajasthan Royals as IPL valuations soar: Report

Billionaire investor David Blitzer is reportedly exploring the acquisition of a majority stake in an Indian Premier League (IPL) franchise and is in talks with two teams, setting the stage for a high-profile bidding contest involving global investors and Indian tycoons.

Blitzer, co-founder of Harris Blitzer Sports & Entertainment, is conducting due diligence on Royal Challengers Bengaluru (RCB) and Rajasthan Royals, reported Reuters, citing people familiar with the discussions.

Manchester United co-chairman Avram Glazer has also submitted initial bids for both teams, according to the report.

Glazer is a co-owner of Manchester United and owner of the NFL’s Tampa Bay Buccaneers.

The rising interest in IPL franchises comes amid surging team revenues and the Twenty20 league’s record valuation.

Global investment bank Houlihan Lokey pegged the overall value of the Indian Premier League at $18.5 billion last year.

Investment firms KKR and Blackstone are also reportedly evaluating potential stakes.

KKR is assessing both RCB and Rajasthan Royals, while Blackstone has shown interest in RCB, Reuters reported last week.

RCB is currently owned by United Spirits Ltd (USL), controlled by Diageo.

In a regulatory filing last year, USL said it was “initiating a strategic review of the investment in its wholly-owned subsidiary, RCSPL”, which owns the RCB franchise participating in the men’s IPL and the Women’s Premier League (WPL) tournaments organised annually by the Board of Control for Cricket in India (BCCI).

“RCSPL has been a valuable and strategic asset for USL. However, it’s non-core to our alcobev business,” USL Managing Director Praveen Someshwar had said at the time.

RCB was founded in 2008 when then USL chairman Vijay Mallya acquired the franchise for USD 111.6 million. Diageo later assumed full control of the team following its acquisition of Mallya’s spirits business.

The deadline for final bids is set for mid-March.

Any transaction would require approval from the BCCI, the world’s richest cricket board.