The back and forth drama of the Indian Premier League’s (IPL) sponsorships continues even as World Sport Group (WSG), the London-based sports management company that holds the Indian Premier League global media rights is looking for an early resolution to the problem. According to the cricket news on the issue, there are sponsors who are withdrawing their backing, the deal with Big TV has fallen thru, the head of Sony India quitting, and there are many problems that currently beset the IPL with less than two months to go before the actual tournament starts.
The IPL however seems to be in denial mode as seen from statements issued in the cricket news by the CEO as well as chairman of Indian Premier League. ‘‘I want to make it amply clear that all our sponsors and partners are still on board. They have all paid as per the schedule. In fact, a lot of other sponsors have approached us and are willing to pay more than our existing ones,’’ said Chairman Lalit Modi.
IPL CEO Sundar Raman insists that there is no issue with Sony for WSG to settle and reportedly said, ‘‘Sony is a partner and we have a deal with them. A ground partner has raised an issue. We are still awaiting Sony’s clarification on those charges. They have not yet reverted.” According to a Sony official as well, there is no issue since there is a back to back deal for 10 years.
The IPL sponsorship as it stands has some of the older players who have pulled out however; newer alliances also have been forged. Like last year brands like Nike, Adidas Reebok, Nokia, Hero Honda and MasterCard are either sponsors or partners with the different teams of the Indian Premier League. Coca Cola has recently made a deal with SRK’s Kolkata Knight Riders.
Apart from individual sponsorships the other thing that Franchises agree is more important is the finances of the IPL itself and the money from that central pool since there is pretty much unanimity of this point that the entire revenue model of the Indian Premier League largely depends on the central sponsors. ‘‘The money coming in from the central pool, the revenue model which feeds on television rights and title sponsorships, has to continue smoothly. It is like a cascading effect, where if one party decides to delay the payment, the after-effect of it multiplies. It’s like my employer delays my salary, I pay my grocer late and grocer pays the wholesaler late and so on... In these times of financial crunch, that’s what is dangerous for any business.’’ a franchise official was quoted as having said.
So the general perception is that as long at the central sponsorships revenue coming in from Sony-Max and DLF remain smooth, there won’t be too many problems.
The IPL however seems to be in denial mode as seen from statements issued in the cricket news by the CEO as well as chairman of Indian Premier League. ‘‘I want to make it amply clear that all our sponsors and partners are still on board. They have all paid as per the schedule. In fact, a lot of other sponsors have approached us and are willing to pay more than our existing ones,’’ said Chairman Lalit Modi.
IPL CEO Sundar Raman insists that there is no issue with Sony for WSG to settle and reportedly said, ‘‘Sony is a partner and we have a deal with them. A ground partner has raised an issue. We are still awaiting Sony’s clarification on those charges. They have not yet reverted.” According to a Sony official as well, there is no issue since there is a back to back deal for 10 years.
The IPL sponsorship as it stands has some of the older players who have pulled out however; newer alliances also have been forged. Like last year brands like Nike, Adidas Reebok, Nokia, Hero Honda and MasterCard are either sponsors or partners with the different teams of the Indian Premier League. Coca Cola has recently made a deal with SRK’s Kolkata Knight Riders.
Apart from individual sponsorships the other thing that Franchises agree is more important is the finances of the IPL itself and the money from that central pool since there is pretty much unanimity of this point that the entire revenue model of the Indian Premier League largely depends on the central sponsors. ‘‘The money coming in from the central pool, the revenue model which feeds on television rights and title sponsorships, has to continue smoothly. It is like a cascading effect, where if one party decides to delay the payment, the after-effect of it multiplies. It’s like my employer delays my salary, I pay my grocer late and grocer pays the wholesaler late and so on... In these times of financial crunch, that’s what is dangerous for any business.’’ a franchise official was quoted as having said.
So the general perception is that as long at the central sponsorships revenue coming in from Sony-Max and DLF remain smooth, there won’t be too many problems.
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