Indian Premier League franchisees are poised to gain up to 25% to 30% in sponsorship sales in spite of an economic slowdown in the country, if early deals are an indicator. While some of the franchisees are in a happy space with early deals, others are out in the market seeking lucrative premiums over last year’s deals. The price tags are obviously driven by the demand.
Kings XI Punjab have started their IPL 2020 season on a promising note, having already signed the title sponsorship with EbixCash. The franchisee had to wait till the last few days before the IPL 2019 when they were compelled to sign a deal in haste TV Today’s Hindi channel Aajtak for a compromising price of around ₹ 5.5 crore. This year the EbixCash deal according to sources is closed for over ₹ 10 crore. According to market sources, KXIP might have got even better had the franchisee, which suffered last year due to a poor response, shown some enterprise to wait for a while.
EbixCash has also acquired the back jersey of the Delhi Capitals, replacing Apollo Steel Tubes. The deal according to market sources is closed at a 30% premium over the price Apollo had paid a year ago.
Rajasthan Royals, who have last year signed JK Lakshmi cement for ₹ 10 crore, are expected to soon announce a deal at almost a 100% premium for the coming season.
Royal Challengers Bangalore, too are back in the market with a 50% higher price tag for their title sponsorship. The team last year had Virat Kohli-co-owned Wrogn as the title sponsor for the IPL 2019 following a late deal in the absence of any significant interest despite a star-studded line up.
Sunrisers Hyderabad, sponsored by, online eyewear trading platform Coolwinks, too have put the title on sale at a 50% premium. They already have better deals in hand, but according to media buyers the franchisee is prepare to wait rather than making any compromises as the the IPL 2020 is still good four months away.
The IPL as the premium sports league of the country has created tremendous value for all its stake holders, ranging from players to the franchisees, broadcasters and the brands who invest crores of rupees on the league.
Media and sponsorship buyers at present have a mandate from the sponsors for better investment in the IPL than the upcoming international series of Team India.