AVN 67.90 Decreased By ▼ -0.58 (-0.85%)
BAFL 31.20 Increased By ▲ 0.20 (0.65%)
BOP 4.90 Decreased By ▼ -0.01 (-0.2%)
CNERGY 3.77 Increased By ▲ 0.02 (0.53%)
DFML 14.33 Increased By ▲ 0.10 (0.7%)
DGKC 41.26 Decreased By ▼ -0.38 (-0.91%)
EPCL 47.30 Increased By ▲ 1.93 (4.25%)
FCCL 11.55 Decreased By ▼ -0.16 (-1.37%)
FFL 5.10 No Change ▼ 0.00 (0%)
FLYNG 6.00 Increased By ▲ 0.15 (2.56%)
GGL 10.83 Increased By ▲ 0.42 (4.03%)
HUBC 68.37 Decreased By ▼ -0.13 (-0.19%)
HUMNL 5.75 No Change ▼ 0.00 (0%)
KAPCO 28.10 Decreased By ▼ -0.12 (-0.43%)
KEL 2.29 Increased By ▲ 0.03 (1.33%)
LOTCHEM 26.89 Increased By ▲ 1.79 (7.13%)
MLCF 21.41 Decreased By ▼ -0.17 (-0.79%)
NETSOL 87.50 Decreased By ▼ -0.85 (-0.96%)
OGDC 99.20 Decreased By ▼ -0.10 (-0.1%)
PAEL 11.13 Increased By ▲ 0.02 (0.18%)
PIBTL 4.28 Increased By ▲ 0.05 (1.18%)
PPL 80.15 Decreased By ▼ -2.30 (-2.79%)
PRL 13.50 Increased By ▲ 0.16 (1.2%)
SILK 0.93 Increased By ▲ 0.03 (3.33%)
SNGP 43.78 Decreased By ▼ -0.60 (-1.35%)
TELE 6.18 No Change ▼ 0.00 (0%)
TPLP 16.06 Increased By ▲ 0.25 (1.58%)
TRG 120.79 Increased By ▲ 1.04 (0.87%)
UNITY 14.20 Increased By ▲ 0.10 (0.71%)
WTL 1.34 Increased By ▲ 0.08 (6.35%)
BR100 4,185 Increased By 13.5 (0.32%)
BR30 15,259 Increased By 5.2 (0.03%)
KSE100 41,788 Increased By 265.4 (0.64%)
KSE30 15,777 Increased By 114.1 (0.73%)
Sports

IPL franchises see glass half-full despite financial hit from Covid-19

The tournament’s original March start was postponed by the first wave of the novel coronavirus.
Published August 31, 2020
Follow us

The Indian Premier League (IPL)’s eight teams are counting the cost of Covid-19’s impact on their finances but having faced the prospect of the tournament being wiped out by the pandemic this year they are taking a ‘glass half-full’ view of the situation.

The IPL’s original March start was postponed by the first wave of the novel coronavirus and India’s cricket board (BCCI) had to pull out all the stops to rescue the Twenty20 league, which has an estimated $6.8 billion brand value.

The tournament has been shifted to the United Arab Emirates, will be played under a hastily-arranged title sponsor and will start on September 19 — nearly six months later than scheduled.

After Vivo paused its title sponsorship for this year’s edition, fantasy gaming company Dream11 took it up for 2.22 billion Indian rupees ($30.36 million), roughly half of the 4.4 billion the Chinese smartphone maker paid annually.

“The discount provided to Dream11 would be a major (financial) hit for the BCCI, along with making arrangements for bio-secure bubble which will be an additional cost burden on the board,” Santosh N, an external advisor at financial consultancy firm Duff & Phelps, told Reuters.

The league shares 50% of the title sponsorship money with the eight franchises, who will also miss out on gate receipts and in-stadium revenue this year while existing sponsors demand discounts in the absence of fan initiatives.

The switch has seen Delhi Capitals lose shirt sponsor Daikin, with the air-conditioning equipment maker saying the new dates did not work for them.

“The reason being the business scenario and the timing, which earlier, being the summer, would call for advertising efforts to create awareness and recall for the AC category,” a Daikin spokesman told Reuters.

Capitals Chairman Parth Jindal said the BCCI should look at compensating the franchises.

“If the BCCI doesn’t compensate, there will be a significant loss to each franchise, about a 30% drop in revenues,” Jindal told Mint newspaper earlier this month.

But with the BCCI at risk of a $547 million drop in revenue had the entire season been cancelled, treasurer Arun Sigh Dhumal preferred to look on the bright side.

“When you encounter such challenging times and so many impediments, you are bound to lose on certain revenues,” Dhumal told Reuters.

“Looking at the overall picture, everybody should be happy that at least we’ve been able to organise it.

“At such short notice, we’ve been able to get a new title sponsor. It speaks volumes of IPL as a brand, and how it has grown over the years.”

Sponsors continue to trickle in for the franchises and the league also welcomed edutech start-up Unacademy as a new sponsor on Saturday on a three-year deal, reportedly worth 1.2 billion rupees.

Santosh said that as the tournament draws closer more would come onboard.

“And with the IPL happening around the festive season this time around, it’s an added bonus for the companies to be associated with it,” he added.

Comments

Comments are closed.

IPL franchises see glass half-full despite financial hit from Covid-19

Intra-day update: rupee registers gains against US dollar

FY24 budget: FBR invites proposals on income tax

LHC suspends ECP's order de-notifying 43 PTI MNAs

AIIB chief economist briefed about state of economy

Dar inducts four new members into ‘RRMC’

Reason behind cut in PSDP disbursement identified

Rs 417bn received by KP: Cabinet decides to conduct audit

Thar coal-based power plant: COD achieved

Power breakdown of Jan 23: Senate panel directs Power Division to conduct probe

TAPI gas pipeline: Pakistan willing to go ahead with or without India