Indian Premier League (IPL), called the cricket festival for Indians, grabs the attention of all genres of people. Being the most watched T20 tournament, it is a huge money-making sector for companies as well as the Indian board by acquiring profitable sponsorship deals. But in the upcoming IPL edition, the COVID-19 disaster has led to a substantial revenue shortfall for BCCI because of reduced sponsorship deals.
BCCI got the huge blow after Vivo pulled out from the title sponsorship deal for IPL 2020. The Chinese mobile company turned down the deal after tension flared up in the India-China border and starting boycotting Chinese product moments in India. However, BCCI was successful in getting Dream11 as Vivo replacement but the contract is 50% of what the board earned last year.
Vivo paid the BCCI for Rs 440 crore annually but the fantasy sports have availed the title sponsorship at Rs 222 crore. Although it’s a big accomplishment for the board to get the sponsors amid the depressed economy.
IPL had two vacant places for the associate sponsors after Dream11 gained title sponsorship and the future group. The Edu-tech company Unacademy and fintech start-up CRED have filled those vacancies reportedly after offering Rs 40 crore each.
IPL franchisees gaining reduced sponsorship deals:
Three IPL franchises have roped in replacement shirt sponsors at lower prices. Delhi Capital’s principal jersey sponsor Daikin had turned down the Rs 14 crore deal soon after the tournament postponed in March. JSW, who is also the co-owner of the franchise, has picked up the sponsorship for a reduced price.
“We at the JSW Group see this as a tremendous opportunity to step in as Principal Sponsor for the Delhi Capitals. There are few properties that garner the viewership of the IPL,” said Parth Jindal, chairman and co-owner of Delhi Capitals.
Dubai Expo, who had signed as Rajasthan Royals for jersey sponsorship, dropped out after the tournament’s postponement news was announced. News network TV9 is said to have come in at a lower rate. The media company has earned a space in KKR’s jersey as well.
“It serves both the parties well. From TV9’s point of view, going with IPL helps their image in the prevailing news market scenario. It takes a while to be No.1 in the Hindi news space and this will help in their quest. Between two franchises they will have visibility across 28 matches,” said Arshad Shawl, founder Alliance Advertising.
BYJU’s after losing the title sponsorship deal has also withdrawn their KKR’s principal sponsorship deals. Mobile Premier League has replaced them from KKR’s jersey.
“KKR is able to rope in a lot of sponsors which are endorsed by their co-owner Shah Rukh Khan, Byjus being one of them. But with their competitors Unacademy coming in as IPL associate partners, they would have their name on the mat, mentioned by commentators. It’s understandable of Byjus to move out, not wanting to play second-fiddle,” said the source connected to franchise sponsorship deals.
Team India’s kit without sponsors:
Nike was India’s kit sponsor. Their deal, which expires in this month, was worth Rs 87 lakh per match. BCCI had invited new kit sponsors at a reduced base price of Rs 65 lakh per match but neither Adidas nor Puma, who picked up tender documents, placed a bid by September 1st, the deadline. BCCI had to find the sponsors Team India is set to tour Australia later this year.
Many financial experts are of the view that sponsors will earn a good sum of money during the IPL 2020 which is said to become the most-watched tournament in its history because people are locked in their homes.