JSW group reportedly close to $100 million takeover of Mallya's Royal Challengers Bangalore

Royal Challengers Bangalore (RCB), the Virat Kohli-led Indian Premier League team, could soon have a new owner. The flamboyant Vijay Mallya, Chairman of the UB (United Breweries) Group, is one of the most recognisable owners in the IPL and has been associated with the league since its inception. But that could change as JSW Group, the steel-power conglomerate, is in advanced talks to acquire the Bangalore franchise in a deal estimated to be around $100 million. [caption id=“attachment_1384283” align=“alignleft” width=“380”]  File photo of current RCB owner Vijay Mallya. AFP[/caption] According to a report in the Economic Times Diageo PLC,  the current owner of United Spirits Ltd,  is pushing for the deal to be be completed. The report says that an “ugly public standoff between Diageo and Mallya over alleged improper diversion of company funds to other entities led to delays in closing the deal.” An unnamed source close to the deal is quoted as saying in the ET report, “JSW was waiting for the IPL season to get over. The due diligence work is going on for a long time. Mallya does not want to sell but Diageo is forcing the sale.” Parth Jindal, JSW Group’s Economic Analyst and son of chairman Sajjan Jindal, had confirmed last month that his organisation was keen on acquiring the star-studded cricket franchise, who are yet to win a title in the IPL. “Why not?” Parth had told the Times of India in June. “Currently, Diageo and Mr. (Vijay) Mallya are sorting out a lot of their issues. So there’s been no development at the moment. But we remain interested,” he added. Vijay Mallya bought the Benglauru franchise in 2008 with the second highest bid worth for $111.6 million, behind Mukesh Ambani’s Reliance Industries Limited who got Mumbai at $111.9 million. Noting that the proposed $100-million takeover is a price lower than expected owing to ownership irregularities and controversies surrounding the league, the ET report quoted a source as saying, “IPL as a brand is doing great. There are no indications of the tournament losing popularity.” Parth Jindal, incidentally, is also the owner of the I-League team Bengaluru FC, who were champions in 2014 and runners-up this year. The Sunil Chhetri-led football team is considered one of the best-run teams in the country and have a passionate fan base in the city. JSW Sports’ proposed move to take over RCB, who are also one of the most popular IPL teams, could see the group establish a strong sporting presence in the southern metro city. Parth also confirmed on social media recently about JSW’s plans for building Indian Institute of Sport, a proposed world class sporting facility in Bengaluru.