Indian cricket’s highly marketable status could prove to be a double-edged sword with major bilateral and IPL sponsorship slots for sale.
India’s Cricket Control Board (BCCI) marketers have been testing for months, with sponsors considering leaving and a number of contract extensions being considered. They have grappled with the constant turmoil of cricket’s bilateral sponsorship over the past year. In addition, most of his IPL sponsorship package of Rs 100 crore will be renewed next year.
That doesn’t take away from the gains made on the media rights front, and Viacom 18’s entry into the high-stakes rating game came at just the right moment for the Indian board. The Reliance-backed broadcast giant has invested enough money to help expand the IPL’s media rights base and facilitate the next Women’s IPL (WIPL). While IPL media rights are the driving force behind BCCI’s growth, the esteemed long-term sponsorship association says a lot about the brand Indian cricket has become.
“Now that the (IPL) sponsorship is over, there are some postponements going on,” said IPL chairman Arun Dhumal. “Next year, all sponsorship rights will be open, including the title sponsor (Tata).”
Tatas will pay around ₹670 crore for IPL 22-23. However, original sponsor Vivo is also compensating his BCCI for the remainder of the contract valued at an average of £440m a year. BCCI 2024 needs to do better.
The high marketability of Indian cricket proves to be a double-edged sword. There are many potential partners, but not everyone can fill the bills, literally or figuratively. Kit’s sponsor, MPL, has been superseded by Killer, but says the market doesn’t live up to the fame it has. The search for a long term partner is ongoing. Economic headwinds also worry other BCCI partners. Until recently, everyone was talking about Byju’s Ed Tech Major success story. BCCI’s shirt sponsor is asking the Indian board of directors to reimburse the bank guarantee as marketing costs are now so imperative. His £1.08 billion five-year kit deal with Chinese phone maker Oppo seems like a long time ago.
Paytm has been BCCI’s title partner for seven years and most recently he paid £326m over four years but terminated the deal and handed over the rights to Mastercard. These rights will extend beyond the end of the current home season in March. Combined with the kit, shirt sponsorship and bilateral cricket title rights (which are no longer as popular as they once were), BCCI expects annual turnover of at least Rs 50 crore. There is also the pressure to live up to the respect that Indian cricket has grown accustomed to.
“Many of these sponsorships are from new-age companies that have big budgets for advertising, so prices have been high in recent years,” said media research analyst Karun Taulani. “In the profitability-focused environment they’re in right now, the only spend they can control is marketing spend. Cricket as a genre will still find takers, but pricing will definitely be an issue. “
However, the IPL must always open up new sponsorship avenues to reach all Indians and appeal to all genders and age groups. Recently, several Saudi Arabian sponsors have entered his IPL scene.
Saudi investment in global esports is on the rise, highlighted by the Saudi sovereign wealth fund PIF’s acquisition of Newcastle United, funding the founding of LIV Golf and an investment in Aston Martin. Their growing interest in his IPL has proven mutually beneficial.
“Let’s not forget that unicorns are facing a severe financial crisis amid concerns of a global recession. BCCI needs Saudi Arabian investment. sports leagues, they cannot enter the alternative betting and crypto space,” said a person close to the development. “As BCCI, your portfolio is viewed through a moral lens, not just a legal one.”