Royal Challenger Bangalore’s loss is Kings XI Punjab’s gain? Yes. In terms of Hero Cycles leaving the Bangalore to embrace title of Kings XI, the IPL franchisee from the home states of the sponsor. A big no. In terms of pure P&L. According to the sources, The Kings XI suffers a net loss of 10% in rush to get the last minute title sponsor for its team . The team, which had a contract worth Rs 5.5 crore with Tata Prima for year 2016, has garnered the Hero Cycles at little less. Punjab plays their first game on April 8, four days from now, is shying from making an official announcement about its tie-up with Hero Cycles.
Gujarat Lions gets no moneys from Oxigen wallet this time. The replacement has left a big hole in the franchisee’s pocket. Mere three days before their opening match against Knight Riders at Rajkot, the team is uncomfortable to confirm who is its prime sponsor for IPL 10. Only confirmation is that it will be a ‘Paan Masala” brand and a 15%-20% decline in the values.
The scenario is not a happy one for majority of the Franchisees who have managed to retain their previous sponsors. Delhi Daredevils title sponsors Daikin Air-conditioners stays with GMR Sports, the franchisee owners for the Delhi team. The company, with a Rs 80 crore marketing budget and Rs 660 crore expansion plan, retained the contract with no significant change to the 2016 value. Delhi Daredevils, struggling with injuries and absence of the key players and below par IPL showing, are just glad to retain the sponsor. “We are happy with Daikin continuing as title sponsor. Most of our sponsors are continuing with us shows the value and ROI brand DD brings,” says the GMR Sports CEO, Mr Hemant Dua.
Mumbai Indians and Videocon D2H stay together for the fifth year with unchanged values from Season 9. Shah Rukh Khan-owned Kolkata Knight Riders have an existing three-year relationship with Gionee. But the contract that started in 2015 offers no additional gains to the Kolkata franchisees, the only IPL team to have registered profits in all season of the league.
Gionee, with a Rs 400 crore marketing purse, is going big on cricket spending. The company, endorsed by India’s most expensive brand Virat Kohli , will also be the Principal Sponsor for Royal Challengers Bangalore. Hero Cycles had made the obvious choice of going with the team from their ‘home state’. The star-studded RCB is made to compromise on price tag on its deal with Gionee. InsideSport has learnt that RCB suffers a 10 per cent deficit from on title sponsorship.
The lone team to make a significant gain are reigning champions Sunrisers Hyderabad. Premier sponsor Ultratech Cement sees more value in cementing the relationship with the leader that has displayed strength and reliability. The franchisee or the sponsor decline to reveal the values, but its confirmed the Ultratech gets the privileged association at a 15% premium.
If Name Virat has not been able to retain the values for RCB, Mahendra Singh Dhoni’s presence fails to garner values for Rising Pune Supergiant. The team had to shed 10% values in its bid to get mobile handset maker MOTOROLA.
The damp squib has left franchisees a worried lot. Trends are viral. Majority of the franchisees are yet to see their balance sheets in profit. Market gurus feel these ‘compromises’ will have lost lasting effects. The market is decided by the buyer. The buyer in the IPL market has learnt, this market for now is on a decline for IPL franchises.