This company pays Rs.100 Cr to a single IPL team. Let’s find out why?
Overview:
Ever since the inception of the IPL, it has turned out to be a credible and well-oiled money-printing machine for the BCCI and the other major stakeholders in the league-from the team management to the players everyone has had a decent share of the pie served by the league.
Whatever prize money the IPL champion team receives is only the tip of the iceberg, and peanuts compared to the money accumulated through the various brand sponsorships.
Comparison with other Leagues:
The ginormous sponsorship fees that certain IPL teams charge from their principal sponsors are often enough to arrange an entire edition of the Pakistan Super League.
Yes, principal sponsors are the companies whose brand logos are prominently displayed on the team’s jerseys. For example, the present principal sponsor of the Indian cricket team is the famous fantasy gaming app- Dream 11.
Importance of Brand Value:
But why did I say that certain IPL teams charge mammoth amounts of money? Does it mean that probably the others don’t make big bucks via the the sponsorship route?
The big sponsorship deals cracked by the teams in any tournament across the globe are determined by the sole self-explanatory criteria of ‘Brand Value’, and hence the sponsorships fees charged by the IPL teams is directly proportional to their brand value. That is why popular teams like CSK, MI and RCB which have a colossal and robust fan-base go on to bag multi-million dollar brand deals, while some other lesser recognized teams like RR, PBKS and LSG are not able to make as high as their counterparts when it comes down to sponsorship fees.
Here is the link to a video that delves deeper into the understanding of Brand Value in IPL:
https://www.youtube.com/watch?v=IPiKZYIICqk
While we are at it, let’s get into the specifics of how high can a company realistically offer to pay to have their names emphatically printed on the most prominent and visible part of an IPL team’s jersey.
This company pays Rs.100 Cr to a single IPL team. Let’s find out why?
All the IPL fans here must have seen or at least heard about the company-‘Slice’. We IPL fans, know this company as we have seen their logo on the flamboyant Mumbai Indians jersey. We may not even know about what this company sells/does or which sector does it actually hail from, but despite that fact we do know that it must be a big and reliable company as we have seen their name in a very prominent place which does the job of authenticating brand in the common man’s eye.
Slice is a fintech brand which has signed the biggest principal sponsor deal in the history of the league and that too with one of the two most successful franchise in the league’s history-Mumbai Indians.
Mukesh Ambani led Mumbai Indians have signed a sponsorship deal of a whopping Rs.100 Crore for a period of 3 years with the fintech company Slice which is focusing on scaling its footprint in the burgeoning Indian marketspace.
Overall, I would honestly like to reiterate the fact that the revenue generated by any IPL team is directly proportional to its unique brand value and loyal fanbase. The teams that instantly struck your mind, the moment you hear the term IPL are the ones who have been doing financially well due to very same factors.
Conversely there are quite a few IPL teams who haven’t does as good on this front and hence have ended up as the teams making it into the list of those with the lowest fanbase.
Here is the link to a Classic Cricwallah blog that lists the name of the teams who have failed to generate a robust fanbase:
https://cricwallah.com/ipl-teams-that-have-the-smallest-fan-base/