Bengaluru: Billionaire and JSW chairman Sajjan Jindal has set his eyes on Indian Premier League (IPL) team Royal Challengers Bangalore (RCB), if the new owner of United Spirits, Diageo, is interested in a spin-off. Jindal’s acquisition interest, routed through JSW Sports, which already owns FC Bengaluru team, however faces resistance from United Spirits (USL) chairman Vijay Mallya who ceded control to drinks giant Diageo but is personally involved in running the cricket franchise.
RCB, a fully-owned subsidiary of USL, has never won the IPL championship but is considered a frontline team because of the star power and the fan base it commands. RCB could attract a bevy of marquee suitors if USL eventually decided on divesting the team. Several India Inc big names have been on the lookout for trophy sports assets, especially in established leagues like IPL.
The $11-billion JSW, with interests spanning from steel to mining to power sector, wants to build a sports business and Bengaluru could be the base for this given its other business interests are in Karnataka. It is in the midst of a big sports infrastructure push at Jindal Vijaynagar in Bellary, where one of its largest steel plants is located.
JSW’s interest in RCB has been in the works for several months even as India’s largest distiller USL saw its net worth erode in the wake of massive write-offs and losses following Diageo’s efforts to clean up the company books. USL faced investor backlash when they recently rejected a slew of business contracts the company had entered into with multiple Mallya entities in the past.
Parth Jindal, son of Sajjan Jindal and the one who oversees JSW Sports, said he has no comment to offer on the subject. A spokesperson for USL said the company would not comment on speculation.
Mallya said he was not aware of any JSW offer. He declined to be drawn into speculative questions on whether he would be interested in retaining RCB if USL considered selling the team. “If there is any such offer in the future I will discuss it with my partner, Diageo,” he said.
Mallya, who controls Sahara Force India F-1 team, has talked about creating a separate company combining all his sports interests. While Force India is held through an overseas personal investment, his interests in cricket and football were part of the listed USL and United Breweries.
