IPL title sponsorship value may dip by 50% this year, but BCCI not too worried
Experts say with IPL just almost 40 days away, finding a big sponsor which can match Vivo’s spending power will be a big challenge for the IPL organisers
Vivo India’s parting of ways with BCCI for this season of IPL being held in UAE was not totally surprising. It was on expected lines after the boycott blitzkrieg that swamped the nation post the Chinese military aggression in the Galwan valley.
As we know by now, this is not a permanent divorce. In the words of BCCI President Sourav Ganguly “it is just a little bit of a blip”. Once the dust settles, Vivo, which spends an astounding Rs 440 crore per annum on IPL sponsorship, may be back on track. This fact is a comforting feeling for the BCCI management in case it is unable to rope in a title sponsor with matching sponsorship value.
It has been reported that BCCI is aggressively reaching out to its existing partners like PayTM which is BCCI’s Home Series Sponsor, Byju’s which is Indian Team Jersey Partners and also some of the IPL associate partners like Tata Motors, Dream11 among others for title sponsorship. However, the reports have also indicated that the management is not getting the response it expects from these brands.
The issue of title sponsors took a new turn on Monday when it was learnt that Baba Ramdev’s Patanjali Ayurved is also bidding for it.
Patanjali’s S K Tijarawala was quick to confirm the development. “We are considering this. This is for VocalForLocal and making one Indian brand as global. This is the right platform," he told news agency PTI.
However, those in the know say it looks unlikely that Patanjali would shell out big dollars since BCCI has made it clear that the title sponsorship rights will only be available for the period from August 18, 2020 to December 31, 2020.
Experts also say that with IPL almost 40 days away, finding a big sponsor which can match Vivo’s spending power will be a big challenge for the IPL organisers. Some experts are already predicting that this year the title sponsorship is likely to dip by 50 per cent given the limited time frame and the dampened market sentiment.
A source close to the BCCI said the management isn't worried if the title sponsorship this year does not match the value of what Vivo offered.
“BCCI is confident that they will get someone. However, they do expect a decline in value and are not worried about it.”
Another top sponsor, which spends upwards of Rs 100 crore on IPL, predicts that the title sponsorship this year may not cross the Rs 200 crore mark.
“BCCI is left with just 40 days and I hear the title sponsorship may not cross the Rs 200 crore mark.”
“They won't be able to get anyone in the range of Rs 440 crore at this stage. Coke and PepsiCo will not sponsor because it is not the right season for them. Samsung has already declined for the first round. Also they haven't opened slots for associate sponsorship,” said the marketing head of a top brand that used to be the biggest IPL ad spender.
“Franchises are also worried because there is no on ground activation this time. Also, the spot rates that are being offered are too steep, they would need to revise it to attract more sponsors," he further added.
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