The 11th edition of the Indian Premier League (IPL) has kicked off with two reinstated teams (Chennai and Jaipur) in a fresh indication to its undiminished appeal to India’s incurably cricket-obsessed masses.
The IPL is as much about cash as cricket. Cash and commerce are part of Indian Premier League’s DNA, its basic construct and intrinsic appeal. The eight franchises in the two-day player auction of the Indian Premier League (IPL) 2018 Spent nearly Rs 432 crores to buy 169 players, including 113 Indians and 56 overseas players. Kolkata Knight Riders were the highest spenders, with Rs 80 crore.
Franchises tie-up with brands to offer visibility to the brand by endorsing their logos on team kits and jerseys. The more prominent the sponsors want their name to be displayed, the more the money. Usually names printed on the chest in bold and behind the players are the highest revenue generating sponsors for a team. However, in balance sheet terms, IPL teams are either making a minor profit or just about keeping their noses above the water.
Few expected the Twenty20 tournament to climb out of spot-fixing and illegal betting it descended into five years ago, however, the IPL not only survived but its brand value actually grew to an estimated $5.3 billion according to New York-based corporate finance advisory firm Duff & Phelps. Last year, the league sold its media rights to Star India for $2.52 billion, the biggest television deal the game has seen. Facebook too made a $600 million bid for the 2018-2022 digital rights of the IPL but still lost out, as Star won both the digital and TV rights in a consolidated bid. According to the data provided by BCCI, the Indian Premier League (IPL) contributed Rs 11.5 billion ($182 million) to India’s Gross Domestic Product (GDP) in 2015.
The IPL manages to hold viewer attention for nearly 60 days, and this is a big window for advertisers. Firms ranging from Samsung to Nokia, Parle Agro to Coca-Cola, and Goibibo to Ceat are investing on the sports extravaganza. It is the game’s engagement, reach and impact that have driven them to do so.
It’s a cricket tournament that’s developed primarily as a valuable commercial property. It offers companies an opportunity to aggressively market and advertise their businesses. The Indian Premier League is going from strength to strength and is in no mood of slowing down anytime soon !!!