Dream11 will be the sponsor of the IPL this season.
The Board of Control for Cricket in India (BCCI) has awarded the title sponsorship rights for the upcoming season of the IPL to fantasy gaming startup Dream11, news agency ANI reported today quoting Brijesh Patel, chairman of the IPL governing council.
The fantasy sports company outbid other major bidders for the cash-rich league purely on the basis of the volume of the sponsorship money it had to offer to the BCCI, according to various media reports. Dream11 came up trumps against one of India’s heavyweights, the Tata Group and Edtech startups such as Byju’s and Unacademy.
As per an ESPNcricinfo report, Dream11 was awarded the IPL sponsorship rights as it offered to pay Rs 222 crore which was relatively higher than the sponsorship fees offered by other bidders for the 13th season of the IPL. For the sponsorship rights, Unacademy offered to pay Rs 210 crore, while Tata offered Rs 180 crore and Byju’s could offer only Rs 125 crore to the BCCI.
As per the mandate of the BCCI, only those companies that have an annual turnover of more than Rs 300 crore were eligible to bid for the title sponsorship of the IPL.
The title sponsorship fees from the title sponsor make the major share of the revenue for the BCCI from the IPL and all the franchises get an equal proportion of that revenue under the BCCI revenue-sharing arrangement. Notably, each franchise gets hold of approximately Rs 20 crore each year from the money offered by the title sponsoring company.
The BCCI has started looking for the title sponsor for IPL 2020 after smartphone maker Vivo pulled out of the league following anti-China sentiments across the country and the subsequent calls for the boycott of the companies of China-origin.
The smartphone maker first in 2015 bagged the title sponsorship rights after the then title sponsor Pepsi had pulled out of the league abruptly. Then in 2017, Vivo retained the title sponsorship rights for the IPL by agreeing to pay approximately Rs 2,199 crore for the IPL seasons between 2017 and 2022, implying a fee of Rs 440 crore per year to the BCCI.