Five reasons: Why does the market value of IPL is decreasing?
IPL title sponsor PepsiCo issued a notice to the BCCI expressing the intent to pull out their sponsorship right from Indian cricket. The richest cricket league of the world has for last few years been a trusted platform for corporate honchos to woo the young Indian consumers. But, things have changed after 2013. As the spot-fixing incident erupted, the image of BCCI tainted. Here, Sportzwiki reliving 5 reasons why the IPL is no more the biggest seasonal sporting event in India to build your brand and embrace the consumers.
IPL in its second year was marred by too many controversies. Be it the slap-gate scam involving S.Sreesanth and Harbhajan Singh, the Lalit Modi twitter rant that made Kochi’s shareholding pattern public, which resulted ouster from the league resulting in the resignation of Shashi Tharoor the termination of franchises for non-payment of bank guarantee and the spot-fixing scandal, suspension of CSK and RR the IPL has often been in the news for the wrong reasons. Recently, Chennai Super Kings was suspended for two years as its owner N. Srinivasan found guilty in the conflict of interest case. On the other hand,a another franchise Rajasthan Royals’ co-owner Raj Kundra was convicted for spot-fixing incidents along with CSK’s Team Principle Gurunath Meiyappan, the son-in-law of N. Srinivasan, that dented the image of the game and raised a question about the trust of the game.
2)Fans are fed up with overdose of cricket
Indian fans have been suffering from an overdose of cricket. During the 2011 World Cup at home Indian cricket fans loosened their wallets and spent huge sum over match tickets, food, costume and satellite TV connections. So, when the IPL started fans were still mesmerized by the victory of the World Cup. So, it was a very hard for them to consume the IPL just six days after the world cup victory. Though, the 2011 IPL earned Rs. 265.11 surplus money, the crowd turn up was very poor. Nevertheless, the same would happen after the April 3 final at the Eden Gardens as IPL itself is a question mark.
3) Players’ fatigue factor
To feed the business interest of corporate associates Indian players are forced to play in the league under the scorching sun of April and May. When the IPL get over Indian players feel exhausted. As a result, when they tour foreign shore suffers a huge defeat. After 2011, IPL, World Cup winning Indian team suffered 8-0 humiliation at the hand of England and Australia. Suddenly, the World Cup winning Indian team came under severe criticism. Captain MS Dhoni failed to survive this criticism. He finally quit captaincy early this year in Australia after losing the Test series 2-0.
4) Innovation of another sporting leagues
The success of IPL, which bolster huge sum Rs 22, 700 crores, American Appraisal, a consulting firm confirmed. But, IPL also paved the way for other leagues in the country to get success as well. After the innovation of leagues like Pro-Kabbadi League (PKL) and the Indian Super league (ISL), in 2014 viewership numbers rivalling that of the IPL. The PKL and ISL recorded 430 million viewers each in their first edition, compared to around 550 million viewers for season seven of the IPL, revealed by American Appraisal. This year, all sponsorship slots for PKL sold out and viewership increased by more than 50% over last year. Meanwhile, due to controversies BCCI’s sponsorship dipped around Rs. 390 crore to Rs. 350 crore. The Indian sports industry has grown by 10% in the last two years from around 4, 400 crores in 2013 to Rs,4, 800 crores in 2015. At the same time, BCCI’s on ground sponsorship plunged from Rs 500 crore to Rs, 460 crores.
5) Cheap sponsorship deal, brand promotion and advertisement price
The new leagues are also breaking the monopoly of cricket over getting the sponsorship deals and advertisements. As young Indians are exposed to new leagues, companies like Hero MotoCorp and Coca-Cola, who were a few years ago were a big sponsor of cricket tournaments, are now looking towards leagues like Hockey India League, PKL, ISL and the International Tennis Premier League. Coke will sponsor the IPTL, where players like Roger Federer, Rafael Nadal and Sania Mirza, Martina Hingis will play, along with brand likes Audi, FedEX and Qatar Airways.
While Coca-Cola, who put its foot print in this country with 1996 Cricket World Cup, will sponsor the 2017 FIFA U-17 World Cup, Hero MotoCorp is the sponsor of ISL and Hockey India League. To add feather to all these team games Indian star shuttler Saina Nehwal also earned 12 crore sponsor cum advertisement deal and Indian national football team striker Sunil Chettri was bought by Mumbai FC for around Rs. 1.2 crore.