- Adar Poonawalla's potential RCB acquisition is a strategic move into consumer-facing businesses
- Diageo seeks up to $2 billion valuation for RCB, a significant rise from its $100 million purchase
- Seth highlights the need for innovative fan engagement beyond traditional sponsorships
Brand guru Suhel Seth has weighed in on the potential acquisition of the Indian Premier League (IPL) franchise Royal Challengers Bangalore (RCB) by Adar Poonawalla, calling it a 'win-win for everyone' and noting that the deal reflects Poonawalla's calculated approach toward consumer-facing businesses.
Speaking to NDTV Profit, Seth highlighted the strategic context of the potential purchase, pointing at how the Poonawalla group has already shifted its focus into businesses that are direct consumer-facing.
He gave an example of investments in Poonawalla Fincorp and Dharma Productions. "If he's looking at consumer-facing businesses from a strategic imprint, it makes sense," Seth observed. "Bollywood is one of our pillars of religiosity, and now cricket."
Suhel Seth on Adar Poonawalla's 'Deal' with Diageo
Diageo Plc. has been considering options to transfer of ownership of RCB. The British distiller had reportedly held discussions with potential advisers and has been seeking a valuation of as much as $2 billion, as reported by Bloomberg.
Seth says the proposed transaction sees a significant payoff for the current owners, Diageo, the global spirits giant. When the company initially acquired the franchise, they were estimated to have spent approximately $100 million. Today, the team is reportedly valued at a staggering $2 billion.
"You are looking at an exponential increase of brand value that is unimaginable,” Seth commented. This potential sale aligns with Diageo's stated commitment, under its global CEO Nik Jhangiani and India head Pravin Sumeshwar, to focus intensely on its core, high-value spirits business. Seth said Diageo India has performed "remarkably well on its assets despite the Herculean task to run an alcohol business in India."
At the right valuation, @RCBTweets is a great team…
October 1, 2025While Seth believes the transaction is a strong fit for both parties, he cautioned that "an investment is only worth the price it is made at." However, he also justified the $2 billion price tag, which he said did not appear "out of the air."
The brand guru attributed the hefty valuation to the relentless growth of the IPL itself. “Over the years, IPL has shown exponential fan base increase, exponential value increase. We have seen greater media spends and we have seen media investments from streaming platforms, from television channels. A lot of that money sprouted back into the franchise owners.”
Suhel Seth On New Era of Fan Engagement
Seth believes the most significant opportunity for a new owner like Poonawala lies in completely redefining fan engagement. He expressed disappointment that many marketing advisors still rely on "the straight way of reaching out," focusing only on jersey sponsorship and traditional ad placements. "No one is looking at fan engagement from a different perspective, from an out-of-the-box perspective," he stated.
Further, the traditional notion of strong city-based loyalties in the IPL has diminished, making the owner's vision and investment paramount. Seth gave the example of Sanjiv Goenka, who lives in Kolkata, but owns the Lucknow Super Giants team, and Shah Rukh Khan, who is based in Mumbai, but owns Kolkata Knight Riders.
"Those city linkages are no longer important. What is important is how much you invest, both in terms of value and in terms of branding in that particular team," he opined.
For RCB, which was previously acquired by Vijay Mallya partly as a "vanity product," Poonawala could start with a "fresh slate." "The time for innovation, invention, recalibration, insightful thinking in the IPL franchise, that time has arrived,” Seth concluded.
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