Parth Jindal’s JSW Group emerges as a potential Royal Challengers Bengaluru bidder, but IPL rules require him to exit Delhi Capitals first.
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RCB Ownership Change: Parth Jindal Emerges as Potential Bidder
Royal Challengers Bengaluru’s potential change of ownership has reached a crucial stage, with Parth Jindal, co-owner of the Delhi Capitals, emerging as a key contender. For Jindal’s JSW Group to acquire RCB, IPL’s long-standing rule against cross-ownership would require him to first divest his stake in DC.
According to Cricbuzz, Diageo/United Spirits has engaged banks, including Citi, and received interest from six parties. Alongside Jindal, potential bidders include Adar Poonawalla, the Adani Group, a Delhi-based industrialist, and two US private equity firms, with valuations nearing $2 billion.
The cross-ownership challenge
The IPL’s regulatory framework strictly prohibits ownership of multiple franchises, a rule reinforced by tender processes since 2015. For Parth Jindal and JSW Group to acquire Royal Challengers Bengaluru, a full exit from their 50% stake in Delhi Capitals is mandatory.
Currently, Delhi Capitals operates as a 50-50 joint venture between JSW Sports and GMR Sports. This structure allows flexibility: JSW could sell its stake either to GMR or a third-party buyer, subject to BCCI approval. The clear ownership and operational arrangements make such a divestment commercially feasible.
Two structural approaches are plausible: a sequential exit from DC followed by RCB acquisition, or a conditional purchase contingent on completing the DC divestment before IPL 2026 operational deadlines, with BCCI Governing Council approval following conflict resolution.
Valuation remains a key consideration. With seller expectations near $2 billion and multiple bidders in play, JSW must weigh whether the premium price justifies divesting from DC. While Diageo labeled sale speculation in June, sustained reports through October indicate evolving dynamics.
For Parth Jindal, acquiring RCB is strategically appealing but requires navigating regulatory and timing constraints. If JSW can successfully structure a DC divestment while meeting valuation expectations, the transition from Capitals to Challengers could shift from speculation to reality.