Diageo Plc is considering various options for its ownership of the Royal Challengers Bengaluru (RCB), the Indian Premier League cricket franchise, according to sources familiar with the matter. RCB recently clinched their first IPL victory.

Originally owned by Vijay Mallya, RCB is an original IPL franchise with Virat Kohli as a key player. Diageo acquired the team after taking over Mallya's spirits business. The UK-based spirits company is now exploring the potential sale of a portion or the entirety of the club, with a valuation of around $2 billion through its Indian subsidiary, United Spirits Ltd.

While the final decision is pending, United Spirits' shares surged by up to 3.3% in Mumbai trading following reports of the possible transaction. This move comes amidst regulatory pressures in India to limit the promotion of tobacco and alcohol brands in the IPL, as well as restrictions on sports personalities endorsing unhealthy products indirectly.

The increasing value of IPL teams has made them attractive sports investments, setting new pricing standards for future transactions in the league. The IPL has become a major entertainment and advertising platform, drawing large audiences both in India and internationally.

Diageo, facing challenges in the US market, could benefit from a stake sale as it focuses on core operations and evaluates its global asset portfolio. This potential sale would provide capital for the company while navigating market uncertainties and strategic shifts.