DLF may not extend IPL’s sponsorship

By: Ravi Sinha

Track2Realty Exclusive

Realty major DLF may not extend sponsorship to the Indian Premier League (IPL) after its first five-year deal expires this year. According to DLF sources, they have conveyed this to the Board of Control for Cricket in India (BCCI).

DLF has been the prime sponsorship to the IPL since its inception and DLF sources maintain they would like to exit IPL this year due to the declining viewers’ interest, as reflected in year-on-year TRP (Television Rating Point) chart.

“Situation has been very different when we had signed the IPL sponsorship five year back. Now that our prime objective of taking DLF homes across the country has been fulfilled, it is time to review the deal. We feel that IPL is also getting controversial with negative media reports of cricketers neglecting national duty for IPL,” said a DLF official requesting anonymity.

The BCCI has also maintained that they will throw its doors open again to corporates and brands for Season Six in 2013.

“All sponsorships and partnerships come to end this season,” confirmed Sundar Raman, CEO, IPL.

The big question remains—whether the BCCI will be able to get a big ticket sponsorship like DLF next time around? In the wake of BCCI toning down to its national sponsorship Sahara Group, in the absence of high ticket sponsorship, it looks highly unlikely.

The BCCI sources, however, assert their marketing whiz kids will be on an overdrive inviting new sponsorship/ partnership proposals for the Twenty20 extravaganza.

“That is because its sponsorship/ partnership agreements — that began in the inaugural season in 2008 with guaranteed revenue far in excess of $100 million — is all set to grow many times this year,” said as BCCI source.

However, Track2Realty has learnt that the IPL is trying it best to renegotiate with India’s largest real estate developer DLF to come on board again for the second half of the first ten years which the first eight franchises successfully bid in 2008.

The Delhi-based DLF, Deutsche Bank and Emeralds Telecoms had made an unsuccessful bid to be among the first eight franchises, but subsequently DLF struck a title-sponsorship deal for five years at $50 million. GMR Holdings became the Delhi franchise.

Five years ago the IPL signed five-year partnership agreements with Hero Honda as associate partner for $22.5 million, PepsiCo as official pouring partner for $12.5 million, Kingfisher as umpires partner for $26.5, ITC as hotel partner and with Kingfisher as airline partner (50 per cent discount plus customised routing and charters).

Apart from the media rights that is with Multi Screen Media (MSM)/ SET MAX, the agreements with DLF, Hero Honda (now Hero Moto Corporation), PepsiCo, Kingfisher, Vodafone (telecom partner), Karbonn Mobiles, Citi (banking partner), and Volkswagen formed a substantial part of the central sponsorship pool and 60 per cent of this money was distributed to the franchises.

Indian cricket has taken a hit following its dismal showing in England and Australia.

IPL as a brand itself suffered because of the alleged abuse of position and embezzlement charges against Lalit Modi leading to his suspension as Chairman of the high-profile Twenty20 event. Fresh valuations post-May 2012 of the billion dollar IPL brand and also of the nine franchises will eventually determine the power of the BCCI to market its money-spinning property.