Despite the continued dismal performance of the Indian cricket team, the Board of Control for Cricket in India (BCCI) expects its annual income to rise 30% to cross Rs 3,000 crore. The increase is expected on the back of team sponsorship and other similar deals this year.
As the BCCI opens sponsorship bids on Monday, it expects at least 20-25% jump in the amount to around Rs 500 crore for the next four years. It also hopes for 30% jump in the amount for official kits
BCCI?s annual income crossed the Rs 1,000 crore-mark three years ago with earnings from team sponsorship (Sahara), kit sponsors (Nike), broadcast (Nimbus) amongst others. With the advent of Indian Premier League (IPL), its annual income more than doubled to cross Rs 2,000 crore-mark within the next 12-15 months. After team sponsors are finalised on Monday, next on line will be the official kit partner with existing Nike and others like Reebok, Addidas, Lotto, readying their plans, sources in the sports marketing business told FE.
For team sponsorship, battle lines are drawn between the existing team sponsor Sahara Group and Bharti Airtel amongst others, BCCI sources said.
From the current base price of Rs 2.5 crore for any kind of international matches to be played by India in the next four years, the per-match sponsorship money will rise to around Rs 3 crore due to the agressive bids put in by both Sahara and Bharti Airtel, i sources said. Last year, when the Sahara deal expired, the BCCI did not find any takers for its offer of Rs 3 crore as the baseprice per match for the bidders. The deal with Sahara was increased by another six months ending June 30, 2010.
Sahara, which now owns the Pune IPL franchise, sees immense value in continuing with the team sponsor title, sources in Sahara said.
For Bharti Airtel, the deal will make business sense specially as it rolls out its 3G services. Bharti has forayed into the Direct-to-Home and IPTV space. ?To leverage its market dominant position, the team sponsor deal will provide it with immense reach for all its telecom and media ventures,” a executive of a sports marketing firm said.