An imperfect pitch TEAMS AND BRANDS
Sony Pictures Network manages to get a ~100-crore bump in advertising revenues from IPL 2017, but the teams may not be as fortunate
The buzz around the Vivo Indian Premier League’s (IPL) 2017 edition is getting deafening, especially as broadcaster Sony Pictures Network India (SPN) says it has hit bullseye with advertisers. It has scaled up its rates and sold out its entire inventory even before the first ball has been bowled and estimates its ad revenue to touch ~1,300 crore this year, ~100 crore more than 2016. But the eight teams gearing up for the grueling fight ahead are not hitting the applause buttons yet.
“Established franchises like Mumbai, Kolkata and Bengaluru, have seen the usual growth in sponsorships. Their track record is proven and they have good recall in the audiences’ minds. Teams like Punjab and Hyderabad are somewhere in the middle along with Delhi. They have either seen the rates remain flat or seen marginal increase. Pune and Gujarat though, have had a tougher time,” says Indranil Das Blah, COO and partner at CAA KWAN, a sports marketing and talent management company.
Pune (Rising Pune Supergiants or RSP) and Gujarat (Gujarat Lions or GL) are the latest additions to the franchise pool. Being new teams, albeit with established players like MS Dhoni (RPS) and Suresh Raina (GL), sponsorship was a challenge as brands favour teams with a winning streak. “One of the issues that the teams (RPS and A list of teams and the number of official partners/sponsors/commercial partners Mumbai Indians Delhi Daredevils Kings XI Punjab Royal Challengers Bangalore Rising Pune Supergiant Gujarat Lions Sunrisers Hyderabad Kolkata Knight Riders GL) faced was that they weren’t able to lock-in sponsors, even primary ones like jersey sponsors, for two years when they went to market last year. This year, they had to start over and one cannot drive a hard bargain when the future of the franchise is also not known,” says Neerav Tomar, MD and CEO, IOS Sports and Entertainment. The teams are not left with unsold inventory however. “It is just that the rates at which the inventory is sold have not appreciated, and in some cases, may have actually been less than last year,” adds Tomar. Both RSP and GL may have also had to do a bit of panic selling as they had started out with very high sponsorship rates says one industry expert.
The two new teams have around 15 sponsors/official partners each, marginally less than teams like MI (18) and Delhi Daredevils (17). However, the sum total of revenue driven from these associations is lower. There are two reasons for the new teams faring poorly; one their prowess on the field is not proven yet and secondly, their future is still in the shadows.
Delhi Daredevils and Kings XI Punjab have not been the most consistent when it comes to performance in the previous nine seasons, but there is no debate over the teams’ future. “In fact, the only reason that the Punjab team may have seen slower growth at under 5 per cent in terms of sponsorship rates, could be because there is some negative conversation around how the team is managed and the ownership,” says Tomar.
The Delhi Daredevils’ team has managed to continue its association with Mother Dairy as the principal sponsor. S Nagarajan, managing director, Mother Dairy, said, “Our association is a natural choice since both the brands have grown in Delhi.” He adds that the tournament’s appeal is high with the younger generation, who are now moving towards a healthy lifestyle. “Hence, we see it as a perfect fit,” he adds.
MI, KKR and RCB have held on to their sponsors. For example, DHFL and Etihad have been with MI for over three years now while Nokia was principal sponsor for KKR for more than four years before Gionee came on board a couple of years back. MI has managed to rope in new sponsors such as Kenstar as well.
While the teams are circumspect about their brand prospects in the IPL’s tenth year, broadcaster SPN is ecstatic. It claims to have sold out its inventory and netted ~100 crore more than it did last year. Usually, the broadcaster has around 10 per cent of the inventory left at the start of the tournament. There are 14 brands on board, including three co-presenters — Vivo, Amazon and Vodafone. Other associate sponsors include Ceat (tyres), Voltas, Parle Products, MakeMyTrip, Yes Bank and Havells.
On-ground sponsorship for the IPL has not been a problem either. While Vivo has committed close to ~100 crore a year as part of its title sponsorship association, other partners like Yes Bank, Maruti Suzuki and Vodafone have also been consistent in their commitment to the tournament. Vodafone has been an official partner for 10 years, having introduced the iconic Zoozoos in the second year of the IPL. This year will see the popular characters coming back for the IPL, and the telecom player has said that it will also continue with the ‘Super Fan’ activity from the previous season.