British firm Diageo Plc, which owns Royal Challengers Bengaluru (RCB) through its Indian company, United Spirits Ltd., is mulling selling a part or all of its share in the IPL franchise, Bloomberg has reported.

RCB was first owned by Vijay Mallya, the then-owner of United Breweries Group and United Spirits Ltd. Mallya, who had bought the club for $111.6 million during the inaugural auction in 2008, helmed the franchise till financial difficulties forced him to relinquish control.

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In 2016, the team was taken over by Diageo after the company acquired Mallya spirits company.

Franchise estimated at $2 billion

Bloomberg, quoting people privy to the latest development, said that the British company has started consultations with potential advisers to assess various option,s including selling a part of the shares or the full portion of the club. The individuals reportedly have said that through United Spirits Ltd., Diageo could value the franchise at approximately $ 2 billion (Rs 17,000 crore).

Bloomberg said that talks in this regard are in the early stages and no final decision has been made so far.

Meanwhile, news of a possible sale on Tuesday caused United Spirits’ share price to escalate by 3.3 per cent at the BSE.

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Coveted sports investments

The development coincides with the Indian government’s efforts to restrict the promotion of tobacco and alcohol brands in the IPL. While the government bans the direct advertisement of tobacco and alcohol products, companies like Diageo hire famous cricketers to market alternative products like soda.

While the value of IPL teams has made them highly-coveted sports investments, a potential sale could establish new pricing standards for future transactions in the popular league, the report says.

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RCB, despite its victory in the IPL series this year, has courted a massive controversy after 11 people died in a stampede outside Bengaluru’s Chinnaswamy Stadium where they had gathered to witness the team’s victory celebrations and catch a glimpse of their favourite stars. As many as 56 fans were injured in the tragedy.