The Hindu Business Line : Sponsorship deals picking up pace

New Delhi, Feb. 4 In the run-up to Season Two of IPL, sponsorship deals have started picking up. Auction of overseas players for the second season takes place in Goa on February 6, following which the brand strength of teams will be better defined.

Brands are bargaining hard, and deals struck could be short term, unlike the multi-year deals last year. According to Mr Mahesh Ranka, , General Manager, Relay Worldwide, however, “brands should look at this as a long-term investment because valuations will only get better henceforth.”

“We will make a lot more than we did last year. We expected huge profits, but given the slowdown, that may not happen,” says Mr Rakesh Singh, Joint President (Marketing), India Cements, owners of Chennai Super Kings. Revenue-share deals have also been finalised with the Future Group for merchandise and Star Vijay for two reality shows.

Two additional endorsement spaces on clothes have also been allowed by IPL, for all teams. Mr Sundar Raman, CEO, IPL says the two central sponsors open now will not be sold for less than $7 million. Mr Raman is upbeat, but he does acknowledge that some “companies don’t want to be seen flashing the money.” Deals could be for two years, after which new teams may be allowed.

Mr Rohit Gupta, who heads sales at Multi Screen Media (formerly SET), says the IPL is “a tried and tested property”. Sony Max has closed four sponsorship deals already. The two presenting sponsors and six associate sponsors are expected to make more than the Rs 300 crore earned last year. Last year’s finals, according to TAM Media, had 36 million tuning into watch. At a time when budgets are limited, bets will be in IPL’s favour, he believes.

Pepsi, the official on-ground beverage partner last year, is believed to have signed as Chennai Super Kings’ official beverage. But nothing has been finalised yet, according to PepsiCo India’s Executive Vice-President of Marketing (Cola), Mr Sandeep Singh Arora.

Rival Coca-Cola, which has signed on Gautam Gambhir, and partners the Delhi Daredevils, is also open to other franchises, says Mr Venkatesh Kini, Vice-President (Marketing), Coca-Cola.