IPL victory a big boost for RCB’s new owners, say brand experts

Winning the coveted Indian Premier League (IPL) two years in a row is a tough act. Royal Challengers Bengaluru (RCB) has done just that and the timing is most interesting. In late March, the team that was owned by United Spirits, the Indian arm of London-based liquor giant, Diageo, was acquired by a consortium led by the Aditya Birla Group and had the Times of India Group, Bolt Ventures and Blackstone. The deal was struck at $1.78 billion.

For Diageo, this was a way to cut back on debt on its global balance sheet. “It was bought when RCB was the No 1 team. Plus, it is known to the peppiest of all IPL teams,” says Harish Bijoor, CEO, Harish Bijoor Consults. Of course, the buyout is still not done but gives the consortium a great start.

“The team is on a high. Only Chennai Super Kings and Mumbai Indians have won the IPL in succession,” points out Manish Porwal, MD, Alchemist Marketing Solutions. In a little over a year, Ahmedabad-based Torrent Group acquired a majority stake in Gujarat Titans and last month saw steel magnate, Lakshmi Niwas Mittal and his son, Aditya, through their family office, pick up 75% of Rajasthan Royals.   

Specifically, in the case of RCB, its brand value is expected to soar. However, given it is named after Royal Challenge, a brand that United Spirits owns, some uncertainty persists on how the new owners will need to approach it. Bijoor thinks RCB is now a generic name and not just about a brand.

“It must remain that way and maybe a JND (just noticeable difference) in insignia can be considered. Plus, the team is called Royal Challengers and not Royal Challenge,” he says, before adding that the buyers must have negotiated this smartly in light of the brand being so iconic. Maybe, the bigger worry is the potential retirement of its star player, Virat Kohli. “That will leave a huge dent for RCB but they must have accounted for that,” says Porwal.