IPL 2020 Complete Sponsors List
The Indian Premier League has progressed steadily since its founding in 2008. Having been nothing more than a sporting event in its early days, the league has evolved into probably the most vibrant annual event with dozens of sponsors bidding millions of dollars to be able to avail of its promotional capacity. This tournament, which provides a high level of monetary value, has opened a new era in a game that was once inconsistent with today’s realities. The entirety of cricket was obsolete, as it was still struggling to break away from the colonial spirit. The introduction of the IPL in 2008 ushered in a wholly new age of the game in India.
Lalit Modi, as the originator of this apparently drastic initiative, had examined the business models of many soccer leagues in Europe and the United States in order to design the final project. The format was blatantly rejected by pedants, the media and fans questioned its viability, and sponsors remained initially hesitant about contributing their money.
On the eve of its 14th season, the league’s popularity was a harsh rebuke to all doubters and skeptics. In terms of revenue, it has become one of the most profitable leagues in the world. While there are multiple sources of revenue, the sums generated by sponsorships constitute the major bulk of the IPL’s income.
The opening match of 2020 season took place on September 19th, in the UAE, in contrast to the usual spring schedule. This was due to the quarantine measure in India. Furthermore, just one month before its commencement, BCCI was forced to bar the title sponsor of the League, a Chinese smartphones manufacturer VIVO. The decision was taken under the pressure of the fans anti-Chinese sentiments, already being strong in India, and which escalated after the Sino-Indian military clash on the border.
Who is the official sponsor of the IPL?
The title sponsor of the League’s championship VIVO company has received title sponsorship rights for the 2017-2022 period for a bid of approximately $341 million. As it was mentioned, last season BCCI had hectically to replace IPL 2020 sponsor VIVO with another title sponsor, for which purpose a special tender was announced. This, however, did not mean the complete withdrawal of VIVO from IPL, as it made its return on the official partner position in 2021.
Vivo received title sponsorship rights for the 2017-2022 period for approximately $341 million, thus continuing its commitment since 2015 membership in the league. But the contract was suspended in August 2020, and a new tender for title sponsor followed, in which Dream11 won the rights for INR 222 crore (approximately $29.7 million) beating several other Indian contenders, including Indian sponsor Byju’s and Unacademy (both in edtech industry).
Central Pool’s revenues consist of money from sponsorships, including local sales. While Star India will pay BCCI 2.55 billion USD for broadcast rights for five seasons (till 2022 incl.). The official broadcaster it will earn app. 59mln. USD from Vivo as a title sponsor, 30mln. USD from five official sponsors and another 8mln. USD from umpire and time-out sponsorship. Currently, IPL 14 has already announced official sponsorship by:
- Upstox;
- Dream11;
- Unacademy;
- Tata Motors;
- Cred!
With the return of Vivo as title sponsor, the Board of Control for Cricket in India is set to earn about $55 million from the upcoming season of IPL. Kicking off April 9, the 14th edition of the IPL will allow one of the top financially lucrative companies to get back on track. As per industry estimates, BCCI reported a 30-40% decline in revenues last year.
Sponsor of the IPL teams payments
IPL franchises are expected to see a 10-15% increase in revenue this year including from IPL sponsors. Experts report that last year, eight teams combined generated sponsorship revenue of 77mln. USD. Out of these, tier one teams such as Chennai Super Kings (CSK), Mumbai Indians (MI), Royal Challengers Bangalore (RCB) and Kolkata Knight Riders earned each between 8-10mln.USD last year. The other brands are estimated to have netted between 4-5mln.USD. Although sponsorship revenues have not returned to pre-covid levels, so far this year there is a 25-30% increase in revenues from collaborations.
According to experts, brands were paying 2-3mln.USD for the front jersey slot and 900.000 2.500.000 USD for the back jersey slot, varying from team to team. At the same time, the front of the helmet went for 250.000-550.000 USD, while the shoulder portion of the team jersey sold for 200.000 to 400.000USD, with the leading arm being more expensive than the non-leading arm.
The interesting thing is that because of the lack of audience in the stadiums, the franchises are researching digital channels where they sell players’ digital assets, such as messages and stock images, to advertisers in particular. Realizing the necessity to derive revenue from digital content marketing, the IPL teams’ managing entities develop digital channels of communication: messengers, Youtube channels, fantasy cricket collaborations, IPs, etc. in order to increase fans engagement. It is alleged that the digital and licensing deals range from 55.000 to 70.000 USD per player. Thus, it is widely considered that the IPL is a very powerful asset, and there are many more opportunities that can be created for cricket fans and spectators on both digital platforms, TV and on physical grounds.
