IPL 2021: On-ground & franchise sponsorship revenue projected to cross Rs 1100 crore

The biggest income jump will come from title sponsorship as Vivo will pay Rs 484 crore compared to the Rs 222 crore that Dream11 paid in IPL 2020

e4m by Javed Farooqui
Updated: Apr 30, 2021 4:39 PM
IPL

The 14th edition of the Indian Premier League (IPL) will not just be a boon for broadcaster Star Disney India but also the Board of Control for Cricket in India (BCCI) and the IPL franchises. The return of Vivo as title sponsor and the addition of Upstox as the fifth official partner is expected to bolster the central sponsorship revenue significantly. After taking a hit in 2020, the IPL franchises are also batting on a stronger wicket with most franchises looking at a double-digit growth.
BCCI is expected to collect Rs 744 crore from the title and other on-ground sponsors. The biggest income jump will come from title sponsorship as Vivo will pay Rs 484 crore compared to the Rs 222 crore that Dream11 paid in IPL 2020. The board will earn an estimated Rs 200 crore from the five on-ground partners - Tata Safari, Dream11, Unacademy, Cred, and Upstox. Umpire partner Paytm and Strategic time-out partner will bring in another Rs 60 crore.
As per the contract between BCCI and Star, the board received 25% (Rs 4086.87 crore) of the media rights payment in FY19 and will receive 18.75% (Rs 3065.15 crore) each in the subsequent years. Star India had paid Rs 16347.5 crore to acquire IPL media rights for five years till 2022.
Thus, the BCCI's income from on-ground sponsorship and media rights is projected to be Rs 3809.15 crore.
According to sources, the IPL franchises are collectively projected to earn Rs 440 crore with the bigger franchises earning anywhere between Rs 65-70 crore and the smaller ones making anywhere between Rs 30-40 crore.

As per the last available financial statements, Chennai Super Kings (CSK), which had earned Rs 67.6 crore in sponsorship revenue in FY20, is eyeing a 15% growth in IPL 2021. Reliance Industries-owned Indianwin Sports, which owns the Mumbai Indians team, is believed to have earned over Rs 70 crore in sponsorship income in FY20. Delhi Capitals had earned Rs 36.45 crore from sponsorship and brand promotion fees in FY20.

It is pertinent to note that the FY20 financials of IPL franchises cover the 12th edition of the tournament, which was played from 23rd March to 12th May 2019.

"In 2020, there had been a slight dip in deal volume and sizes but it has rebounded spectacularly this season. We have already seen new partners come on board in the league at a premium of around 30-40% from what it was last year. The overall sponsorship values should be around 20-25% more than the previous season," said ITW Consulting MD Bhairav Shanth.

According to the senior executive with a leading media agency, most official partner deals are in the Rs 40-44 crore range and have a similar structure of 2+1 years (two-year deal with an option to renew for another year). The BCCI has six official partner slots, however, one slot has remained unsold. The source added that the IPL franchise sponsorship income is in the Rs 40 to 70 crore range. The upper range is for bigger franchises while the lower range is for the smaller franchises.

Shanth also said that the IPL sponsors' roster is getting diverse with each passing year. "We have seen a huge diversity of brands coming on board, from startups to unicorns, from established brands to new entrants. The BFSI sector has been a huge mover this season with brands like CRED, Groww, and the like getting involved, and with a new financial year having just begun, it presents an interesting opportunity for them. But we at ITW have also introduced a plethora of brands to the sport (and IPL in particular) for the first time through platforms such as Hotstar," he added.

According to Shanth, the revenue growth for franchises will be around 20% of 2020 in terms of franchise asset sales and from BCCI central pool. "Overall revenue will grow by Rs 300 crore + approximate with VIVO coming back as the title and two official partners added alongside CRED, Unacademy, and Tata Safari," he noted.

He also said that the franchises have seen heavy interest in sponsorship. Apart from the usual partnerships, there has also been a rise in digital deals. These are sponsorships that allow brands to leverage a team’s social and digital presence, or are executed only on digital media such as streaming services or social platforms.

"With increased streaming viewership and the opportunity to create co-branded customized campaigns & promotions events, and by not being hugely expensive it offers new age and emerging brands a chance to participate and leverage the reach IPL has to offer," he averred.

Punjab Kings CEO Satish Menon said that the franchise's sponsorship income will grow at 30% compared to 2020 when all the franchises had taken a hit due to recession in the economy. "We are looking at 30% growth in sponsorship revenue from IPL 2021. Most franchises have nine spots to sell on Jersey and Pants so that is standard across franchises. This comprises almost 95% of the sponsorship revenue. The rest are mostly digital partnerships and their revenue contribution is negligible. The revenue from the central pool will also go up since the BCCI has added new clients," he stated.

According to Menon, 2019 was the peak revenue year for most franchises. In 2020, all franchises had to take a 13-15% hit. "The objective last year was to get the IPL going," he noted.

The JSW GMR Cricket-owned Delhi Capitals has touched Rs 65 crore in sponsorship revenue for IPL 2021. This is a 50% growth over the previous IPL season. "This has been the best year ever for Delhi Capitals in terms of sponsorship revenues. We have touched Rs 65 crore on the back of the solid performance and resurgence of the team," Delhi Capitals Interim CEO Vinod Bisht had told exchange4media.com in an earlier interaction.

Elaborating on the successful sponsorship run, Bisht noted that one of the major reasons behind the team’s recent commercial success is its adaptation to the shift in global sports sponsorships where traditional sponsor entitlements like tickets, match-day experiences, and in-stadia branding rapidly lost value.

"In response, Delhi Capitals quickly pivoted focus to maximising the potential of their digital content and social media, to add value to their partners. The upward trajectory of the team’s digital strategy is evident by the record 450 million views garnered on its video content in 2020. Last year, the franchise also witnessed a follower growth of 32% on Facebook and Instagram, the highest among all teams," Bisht said.

IPL sponsors are finding unique ways to engage with fans as on-ground activations are not possible due to the pandemic. "They have gone heavily digital in execution to sidestep the pandemic limitations. All of the brands naturally would have wanted direct interaction with the consumers but in this new stage, virtual events, activations, meets and greets where people interact with their heroes online (and via tech such as AR and VR) have become the norm and also proving to be very successful."

He further stated that people have become more receptive to these media and that’s drawing a larger crowd to these events. "Developing exclusive digital content, getting the fans to participate in creating those are the kind of trends that we are noticing with brands regardless of the kind of product or service involved - whether it’s a paint brand or a healthcare brand or a finance brand."
IPL franchises and their sponsors/partners
SunRisers Hyderabad

Title Sponsor: JK Lakshmi Cement
Principal Sponsors: Ralco Tyres, Kent RO, Jio, TCL, Dream11, Nerolac
Other sponsors: Colgate, JaiRaj Steel
Official partners: Tyka, FanCode, Tenali Double Horse, iB Cricket, Kotak, Cover It Up, Amul Kool, MX TakaTak, Gemini TV

Royal Challengers Bangalore

Title sponsor: Muthoot FinCorp
Principal Partners: DP World, Exide, Jio
Associate partners: Pum, Exide, PhonePe, Boat, Max Life Insurance, Nippon Paint
Official Partners: Kingfisher Premium, Myntra, socios.com, Jain (JGI), Nestle Milo, BKT, Herbalife Nutrition, Kotak, Sosyo, iB Cricket, EUME, Fever 104 FM, MX Takatak, DNA Networks

Rajasthan Royals

Principal Sponsors: Expo 2020 Dubai, BKT, Jio, KEI Wires and Cables
Associate Sponsors: Studds, Colgate, Goel TMT, Goel Pipes
Official Partners: Kingfisher, Dream11, Kotak, MX TakaTak, GoPro
Official Suppliers: Yellow Panther, Sportz Interactive, Interactive Avenues

Punjab Kings

Title Sponsor: Ebix Cash
Principal Sponsors: BKT, Lotus Herbals, Jio, All Seasons, Dream11, Boat
Partners: Bodycare, T10 Sports (kit & merchandise), Colgate, Coca-Cola, Kingfisher, MX Takatak, Kotak, FanCode, Tech Mahindra, Spektacom

Mumbai Indians

Principal Partners: Samsung, DHL
Associate Partners: Marriott Bonvoy, Jio, Astral Pipes
Official Partners: MX TakaTak, PhonePe, Kingfisher, Usha, ACKO Insurance, Cadbury Dairy Milk, Colgate, Kotak, Dream11, BKT, PT Men of Platinum, Amul Kool, Boat, Performax, ESA (Reliance), DNA Networks, Radio City, Fever FM

KKR

Principal Sponsor: MPL
Official Sponsor: Unacademy, Lux Cozi, TV9 Bharatvarsh, Astral Pipes, Pentonic, Jio, Colgate, RR Kabel, Wrogn
Official Partners: BKT, Kotak, Kingfisher, Mio Amore, Amul Kool

Delhi Capitals

Principal Sponsors: JSW, Apollo, Ebix Cash, Jio
Associate Sponsors: ACKO, Cornitos, GMR Aerocity, Colgate, Evolut, Nissin, Octa FX, Wrogn
Partners: Dream11, Western Digital, BKT, Optimum Nutrition, Maxirich, Hunk, Boat, Kotak, FanCode, Fever FM

CSK

Principal Partners: Myntra, India Cements, Gulf, British Empire, SNJ 10000, Jio, Nippon Paint, Astral Pipes, Equitas
Official Partners: Clear Shampoo, BKT, Dream11
Digital Partners: PhonePe, Glance Roposo, Joy e-bike
Radio partners: Fever FM, Hello FM
Merchandise partners: Atlasware, Basics, Boat, Christy Textiles, Cover Cup, EUME, Fully Filmy, Kaadoo, Lamy, Levista, NAC Jewellers, Nasher Miles, Seven, Sonata, The Souled Store

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