Analysts believe that the return of two popular franchises — Chennai Super Kings and Rajasthan Royals — after a two-year suspension has helped in getting more brands.
With the 11th edition Indian Premier League (IPL) slated to start from April 7, the total apparel sponsorship pacts signed by the eight teams is in the range of Rs 300–320 crore. This is about 37-46% more than what the teams earned in the 10th edition of IPL in 2017. According to GroupM’s latest report on sports marketing titled, ‘Sporting nation in the making V’, the total sponsorship revenue earned by the eight teams remained flat for the last two seasons in 2016 and 2017 at Rs 219 crore, respectively. Analysts believe that the return of two popular franchises — Chennai Super Kings and Rajasthan Royals — after a two-year suspension has helped in getting more brands. In 2016 and 2017, the two teams were replaced by Rising Pune Supergiant and Gujarat Lions.
“IPL has returned in its original avatar for viewers as well as for advertiser. Also, with the teams no longer dependent on money earned from sponsorship, due to increase in central pool revenue, they have a greater bargaining power,” Indranil Das Blah, COO, Kwan Entertainment and
Marketing Solutions, said. Agreed Mohit Burman, co-owner, KingsXI Punjab, who said, “We expect a substantial increase in revenue from central pool. Additionally, when compared to 2016, revenue from apparel sponsorship has increased by 25%”. The franchise has already on boarded 15 sponsors including Kent RO as its title sponsor.
Similarly, Chennai Super Kings claims that its sponsorship revenue this year has increased by 15%. “We have got about 12 sponsors which could go up to 15 sponsors before the start of IPL. CSK is a strong franchise with a consistent performance and having very strong fan base. Therefore, we do get a premium from sponsors,” George John, whole-time director, Chennai Super Kings said. Mumbai Indians is another franchise which is expected to rake in sponsorship revenue ranging between Rs 80 crore and Rs 85 crore, according industry sources. With Samsung as the lead sponsor in the front of its jersey, the team has Goibibo on the backside. Other sponsors include DHFL, Jio, Usha, Sharp, etc.
Blah further pointed out that unlike the past few years IPL teams are not in a rush to sign in sponsors at lower rates. Currently, a spot in the front of a jersey of teams such as Mumbai Indians, Kolkata Knight Riders and Royal Challengers Bangalore ranges between Rs 20 crore and Rs 23 crore, while for a spot on the back side are required to pay anywhere in the range of Rs 10-15 crore. As for other teams such as Kings XI Punjab and Delhi Daredevils, a spot in the front of team jersey ranges from Rs 12-15 crore, while on the back side advertisers pay between Rs 6 crore and Rs 7 crore.
For Hemant Dua, CEO, Daredevils, who claims that sponsorship revenue has increased by about 30% this year, after 10 years all the teams would start to make money. “Either end of FY19 or by end of the next fiscal, all teams would turn profitable,” he said.
The franchise has signed in Daikin as the lead sponsor, while Suzuki Gixxer is on the back, apart from other brands such as Coca Cola, Nerolac and DTDC. The franchise claimed to have made a profit of Rs 9 crore in FY18.