 "RCB contributed 16 percent to United Spirits' net profit in 2023-24")
United Spirits Limited (USL), India’s biggest alcoholic beverages company and owners of Royal Challengers Bangalore (RCB), has announced making 16 percent of its net profit from the cricket team. In comparison, two years ago RCB’s contribution to USL’s profit stood at 8 percent, which has doubled after the Indian Premier League (IPL) team witnessed a sharp rise in its revenue.
RCB’s revenue for 2023-24 was Rs. 650 crore, a 163% increase from a revenue of Rs. 247 crore in the 2022-23 financial year, as per a report in the Economic Times. RCB’s net profit for 2023-24 stood at Rs. 222 crore, boosted by the increase in central rights income from the Board of Control for Cricket in India (BCCI).
In 2022-23, the franchise had reported a net loss of Rs. 15 crore, USL, a subsidiary of the world’s largest distiller Diageo Plc, said in its annual statement.
Apart from the central rights income from the BCCI, RCB earns revenue from sponsorship, royalty and licensing deals, and ticket sales. The team qualifying for playoffs also adds up to the revenue. RCB’s women’s team won the Women’s Premier League (WPL) title earlier this season to aid the revenue.
“The group receives sponsorship revenue for displaying the sponsor’s logo or brand on the players jersey, company website etc. Royalty and licensing revenue is received from customers for usage of RCB brand name, RCB logo, player photograph etc.
“Revenue from sponsorship and royalty and licensing contracts are recognised over the period of Indian Premier League and WPL season, based on number of matches played, which corresponds with the period of service,” Diageo Plc said in the annual report.
RCB was bought by USL in 2008 for over $111 million. USL was back then owned by Vijay Mallya who converted RCB into a subsidiary of USL.
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