BCCI (File Photo| PTI)
BCCI (File Photo| PTI)

BCCI sponsorship profile takes a hit

The IPL is widely followed and cricket is still a sought-after medium for advertisers, but the amounts are no longer the same.

The sponsorship profile of cricket in India is witnessing a change. Gone are the days when multinational companies with a global presence were at the forefront. This is becoming the preserve of a new entity, online gaming companies, at much lower rates.

After Dream 11 bagged title sponsorship rights of the Indian Premier League (IPL) for Rs 220 crore per year—half of what was paid by Vivo previously—MPL Sports became the kit sponsor of the Indian teams. It is owned by an online gaming company and although the figures are not disclosed yet, it is estimated to be fewer than Rs 70 crore a year, the money Nike used to pay.

The drop in amount can be attributed to the damage the global economy has suffered. Due to the Covid-19 pandemic, almost every business has taken a hit and it is difficult at the moment to spend millions in sponsorship of sports. Indian cricket, which saw figures rise even after the worldwide economic depression near the end of the previous decade, is feeling the pinch for the first time since its numbers started soaring. The IPL is widely followed and cricket is still a sought-after medium for advertisers, but the amounts are no longer the same.

Among other things, this will reduce the bargaining power of the Board of Control for Cricket in India (BCCI). The other point to note is that global brands are no longer in the picture as far as sponsoring Indian cricket is concerned. Sportswear giants Nike, Adidas and Puma were in the fray when the BCCI invited tenders for kit sponsorship. None submitted bids.

While it is possible that they are concentrating on European football, basketball in the US and the Olympics, their disinterest in a market they once explored with great interest is a significant strategic change. Online gaming companies filling up the void is good news for the BCCI for the moment. But these companies are coming under the scanner and certain state governments have banned them. This means there is a question mark over the future of such associations. Used to selling sponsorship rights for astronomical figures, there is food for thought for the BCCI.

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The New Indian Express
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