IPL teams see double-digit growth in sponsorship revenues this season

Meenakshi Verma Ambwani | | Updated on: Mar 28, 2022
Bhanuka Rajapaksa of Punjab Kings  during match 3 of the TATA Indian Premier League 2022 (IPL season 15) between the Punjab Kings and the Royal Challengers Bangalore held at the DY Patil Stadium, in Mumbai, on Sunday

Photo by Deepak Malik / Sportzpics for IPL

Bhanuka Rajapaksa of Punjab Kings during match 3 of the TATA Indian Premier League 2022 (IPL season 15) between the Punjab Kings and the Royal Challengers Bangalore held at the DY Patil Stadium, in Mumbai, on Sunday Photo by Deepak Malik / Sportzpics for IPL | Photo Credit: Deepak Malik

Experts say the portfolio of brands within the IPL ecosystem has been growing

The franchises of Indian Premiere League said they have seen strong growth in sponsorship revenues this season, compared to last year, as the T20 league returned to the home turf after a hiatus.

A spokesperson for Mumbai Indians said the team has witnessed “significant double-digit growth” in terms of brand valuation and sponsorship revenues this season, compared to last year.

Delhi Capitals, too, said it has seen a 20 per cent growth over last year in terms of sponsorship revenues. Vinod Bisht, Interim CEO, Delhi Capitals, said: “With IPL happening in India and with two new teams, it has become a robust business proposition for potential sponsor partners. It is no longer seasonal and I think we are moving in a direction where sponsorship will no longer be a short-term association. Brands are looking for a long term partnerships and outcomes.”

He added that the team has closed nearly 24 partnerships this season, including jersey sponsorships, brands coming on board as partners, besides licensed agreements, among others. “Also, Covid has changed the dynamics of the IPL business. Franchises and brands are relying more on technology, with a strong focus on digital activations as it drives their a direct engagement with the audience,” Bisht stated.

Portfolio of brands

Experts said the portfolio of brands within the IPL ecosystem has been growing, with a mix of both traditional and new-age brands inking partnerships with the teams.

Jake Lush McCrum, Chief Executive Officer, Rajasthan Royals, said: “We’ve had a significant increase in sponsorship revenue. We had a strong year in 2021 and we’ve exceeded it this year. There have been many positive macro factors, including the tournament being back in India, two new teams being added, and a mega auction which have supported this growth.”

He added that the team focuses on brands that look at leveraging on round-the-year activations. “We’ve been speaking to brands from close to all categories, but the most important aspect for us is to align in terms of the vision and the purpose of the two brands. We are targeting having less partners, but more significantly invested and activated partners. This leads to greater engagements and more impactful partnerships,” McCrum stated.

Nikhil Bardia, Head of Sponsorship Sales and Talent, RISE Worldwide, said that teams have seen a 20-25 per cent increase in sponsorship revenues this year. He added that while the sponsorship pool of existing teams has increased, the two new teams have also maximised their revenue potential.

“There are a lot of new sponsors that have come into the IPL this season and it has been a mix of both traditional and new age brands. The brand ecosystem has expanded with EV, Auto-tech, FMCG and new-age brands coming on board. Overall within the ecosystem, too, we will continue to see newer sectors, brands and categories invest in the IPL,” Bardia added.

Published on March 28, 2022
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