Encouraging signs, but still some way to go

All the teams target on-field and financial returns as the Season II of Pro-Kabaddi League gets underway in Mumbai today

MUMBAI: The Pro-Kabaddi League (PKL) surprised many with the interest it evoked in its inaugural season. The lack of stars notwithstanding, the expectations are high as the second season kicks off in Mumbai on Friday.

The tournament reached 435 million viewers — second only to the Indian Premier League (560 million) — but on the ground teams are still struggling to get the right price. On an average each team spent about `5-6 crore, including `1-1.5 crore as franchise fee and another `60 lakh as player costs and overheads. It is reported that nearly every team incurred a loss of close to `3 crore in the inaugural season.

This year, the pool of players has been raised to 22 for each team, and the salary cap has increased from `60 lakh to `1.25 cr. Marketing too is an aspect teams are keeping a tab on, and an estimated rise in investment of `1-2 crore is expected for each team.

After last season, sponsors showed a growing desire to associate themselves with the league. However, deals were struck for amounts as low as `10-15 lakh. This year, the amounts have gone up to the tune of `1-1.5 crore.

Targets have become pronounced with top teams such as defending champions Jaipur Pink Panthers and U Mumba already making long-term deals. The two teams are now hopeful of taking these numbers to close to `6-7 crore and the bigger teams aiming at `15 crore.

Supratik Sen, CEO, sports, Unilazer, which runs U Mumba, says the company is looking at raising revenue close to `12-15 crore. “After the success of the first season, we have found a lot of interest from sponsors,” said Sen. “I would say we have met most of our targets so far. However, there have been instances where we would have liked a better valuation,” he added.

Like U Mumba, Jaipur too are looking to cash in on their success. It is learnt that they sold the jersey (front and back) for almost `8 crore. Incidentally, both U Mumba and Jaipur had an asking rate of `6 crore a year ago but had to settle for `4 crore after negotiations.

Last year’s ratings have helped bring in sponsors for the broadcaster, Star India, but the sponsors have been a bit reluctant to spend when it comes to the teams. Till now, only U Mumba, Puneri Paltans and Bengaluru Bulls have announced their primary sponsors.

According to Bengaluru Bulls owner, Uday Sinh Wala, the team let go of opportunities to avoid devaluation of sponsorship slots.

“Many teams, including us, have preferred to let go of certain sponsorship opportunities, just to avoid devaluation of products,” said Wala. “We are still some time from breaking even, however, there has been a conscious decision to avoid taking up sponsors below our expectations,” he added.

According to Tuhin Mishra, managing director of sports marketing firm, Baseline, there is still hesitation among sponsors to associate with kabaddi.

“One has to consider the novelty in helping a league like PKL to flourish. The first season was a surprise hit and the magnitude of success took everyone by surprise. But it is consistency which will draw the big sponsors,” he said.

“This season, many PKL teams have spiked their ad rates, so not many sponsors will gamble in the second season. In many ways, this season will be the litmus test for the financial stability of the league,” he added.

Mishra felt the presence of other leagues such as the Indian Super League (ISL) has given advertisers a safer option, considering that kabaddi is not a conventional sport for TV.

Another reason that franchisees have decided not to reduce prices and therefore are ready to forego sponsorship opportunities as the arrangement they have with Star which entitles them to a sizeable remuneration and not be completely dependent on sponsorship deals.

In fact, Dabang Delhi, who are yet to finalise their sponsors, have gone ahead and slashed their instadia ticket prices.

“Tickets for Dabang Delhi matches will be available for R400 and ` 350 and VIP tickets are priced at R700. Our tickets sold at a much higher rate last season but this year we have consciously slashed the rate so that maximum fans can come and watch,” said Dabang Delhi owner Radha Kapoor.

“The viewership last year was a close second to IPL and attendance at stadiums was 92% across all venues. These are great signs for the game and gives us confidence that we will break even,” she added.