As per industry estimates, the franchises are looking at 10-15% rise in sponsorship revenue
As per industry estimates, the eight franchises together clocked Rs 450-500 crore last year as sponsorship revenue.
With Vivo back as the title sponsor, The Board of Control for Cricket in India (BCCI) is looking to earn about Rs 4,000 crore from the forthcoming upcoming Indian Premier League (IPL). Starting from April 9, the 14 edition of the IPL will allow one of the cash rich sporting bodies to bounce back into action. According to industry estimates, the BCCI had reported a 30-40% decline in revenue last year. So far it has signed in five sponsors and is looking to add one or two more. “BCCI added two official partners in 2020 and have added one more in 2021 which is incredible considering a gap of just four-five months in both seasons. This very clearly means that there is a growing demand for IPL and hence sponsorship revenue is on the rise,” Vinit Karnik, business head, Entertainment, Sports and LIVE Events, GroupM told BrandWagon Online
The central pool revenue consists of money earned from sponsorships including on-ground activation. While Star India will pay Rs 3,269.5 crore to the BCCI for broadcasting rights, it will earn Rs 440 crore from Vivo as title sponsor along with Rs 220 crore from the five official sponsors, and another Rs 60 crore from umpire and strategic time-out sponsorship. At present, the IPL 14 has signed in Upstox, Dream11, Unacademy, Tata Motors and Cred as official sponsors.
Subsequently, IPL franchises are expected to clock a 10-15% rise in revenue this year. As per industry estimates, the eight franchises together clocked Rs 450-500 crore last year as sponsorship revenue. Of this, class A — teams such as Chennai Super Kings (CSK), Mumbai Indians (MI), Royal Challengers Bangalore (RCB) and Shah Rukh Khan’s co-owned team Kolkata Knight Riders (KKR) had raked in anywhere between Rs 60-75 crore last year. The remaining teams are estimated to have earned between Rs 40 crore – Rs 50 crore. “While our sponsorship revenue isn’t back to pre-covid levels, we have witnessed a 25-30% increase in revenue this year and are comparably in a better place when compared to last year,” Kasi Viswanathan, CEO, Chennai Super Kings (CSK), stated.
Sources reveal that, depending on the teams, brands have paid anywhere in the range of Rs 25 – 15 crore for a slot in the front of the team jersey, and Rs 7 – 13 crore, for a space behind the jersey. Meanwhile, the front of a helmet has been sold for Rs 2-4 crore, while shoulder position of team jerseys have been sold at between Rs 1.5 crore – Rs 3 crore, with the leading arm ranging on the higher side as opposed to non-leading arm.
Interestingly, due to spectator-less tourney, the franchises are seen exploring digital avenues wherein it is selling players’ digital assets such as posts and stock images, among others to advertisers. “Recognising the need to capitalise on digital content marketing and the growing valuation of Delhi Capitals’ assets, we brought on board OctaFX which will sponsor six digital IPs under the DCTV umbrella – DC All Access, DC on The Pitch, Capitals Unplugged, DC Specials, Salaam Dilli and FanCam. Apart from this, the brand will be provided access to the team’s players for developing its key communication and elevating its customer engagement,” Vinod Bisht, Interim CEO, Delhi Capitals, elaborated on the digital partnership. Sources claim that the digital and licensing deals are being brokered between Rs 40 – 50 lakh per player.
It is to be noted that the BCCI shares 50% of the revenue with the franchises as part of the central pool. Franchises, in turn, contribute 20% of their total revenue back to BCCI at the end of the tourney.