Nikhil Kamath, Ranjan Pai interested in buying RCB: Report
What's the story
Royal Challengers Bengaluru (RCB), one of the most valuable franchises in the Indian Premier League (IPL), is up for sale. Diageo, the current owner, has confirmed the decision. The news has sparked interest from local billionaires Nikhil Kamath and Ranjan Pai, as per Times of India. Kamath is co-founder of Zerodha, while Pai is chairman of Manipal Education and Medical Group (MEMG).
Bidding prospects
Adar Poonawalla also a potential bidder
Both Kamath and Pai are Kannadigas with the financial capacity to bid for a franchise worth over a billion dollars. The potential bidders also include Adar Poonawalla, CEO of Serum Institute of India, the world's largest vaccine manufacturer. Poonawalla hinted at his interest in acquiring RCB through an X post on October 1, saying "At the right valuation, @RCBTweets is a great team."
Financial standings
Potential bidders' financial capacity and local connection
A consortium of Kamath, Pai, and possibly Poonawalla could bid for RCB. According to Forbes, Pai has an estimated net worth of $2.8 billion while Kamath's is at $2.5 billion. Poonawalla's family fortune is over $20 billion according to Forbes data. The potential bidders are likely to consider a local figure for effective connection with RCB's passionate fanbase and support from the city's political and social establishment.
Franchise worth
RCB's valuation and IPL's financials
A Forbes report in 2022 valued RCB at just over $1 billion. However, given their recent championship win, the figure is likely to be much higher now. A comprehensive valuation report by investment firm Houlihan Lokey pegged the IPL's business value at $18.5 billion and brand value at $3.9 billion in 2025. RCB has the highest brand value among all franchises at $269 million.