Diageo's cricket sale looks well-timed for new CEO, says UBS

Diageo PLC's (LSE:DGE) sale of its Royal Challengers cricket franchise is at what analysts at UBS describe as a rich valuation, with the deal helping the FTSE 100 booze maker chip away at a debt pile that has become an increasing concern for investors. UBS calculates the sale values the franchise at 54 times its underlying profits (EBITDA) – a striking multiple that reflects both the booming value of sports franchises globally and the timing of the sale, which followed RCB's first-ever IPL title win last June.