Could £1bn IPL RCB cricket windfall begin Diageo’s comeback?

It’s been a tough few months for Diageo – and a tough few years for Diageo shareholders. The London-listed drinks giant has seen its share price melt away amid a slump in demand for premium spirits, rising production costs and a flurry of tariffs from across the pond. The stock is already down by an eighth since January.

Spare a thought for City AM‘s chief reporter, Ali Lyon, who made the Guinness and Johnnie Walker maker his stock pick for 2026 at the start of the year. He may need more than a couple pints of the black stuff to commiserate come December.

Except there is still time for a change in fortunes for Diageo. Aside from bringing in City turnaround expert ‘drastic’ Dave Lewis as its new boss, the spirits maker may also be about to get a £1bn boost from the sale of an unusual asset it rarely discusses.

Stiff drink for Diageo?

Just over a decade ago the company built up a majority stake in United Spirits, an Indian drinks business. Aside from the whisky, wine, vodka and brandy brands Diageo acquired in the process was one unusual asset it didn’t know what to do with: an Indian Premier League (IPL) cricket team called Royal Challengers Bengaluru.

Diageo has quietly kept the club in its portfolio ever since. The team only gets a single mention in its latest annual report.

But now, after a decent innings, the team is back in the spotlight. Drastic Dave is on the look out to cut the fat from the business, including disposing of non-core assets. The IPL’s Royal Challengers Bengaluru is back at the crease.

The company has been in talks to divest the club in a deal that could value it at as much as $2bn. That’s a big windfall for the spirits giant desperate to revive shareholder spirits.

What might they do with the cash? A big one-off dividend, or a bumper buyback, might be on the cards. It’s no silver bullet, but this could be Diageo’s best route back to success.