The second season of the Indian Premier League (IPL) will no longer be held in India. Even as the announcement left the fans back home disappointed, the League has yet to decide on a final venue – the choice, as of now, is a toss-up between England and South Africa – and will make its international destination known by Monday evening.
The move translates into huge commercial implications for the team owners, sponsors and programmers. “We will spend much more money and may not be able to make profits. But our priority is to get the Indian fans the tournament,” said IPL commissioner Lalit Modi. After being a huge hit last year, IPL 2009 will only be an only-TV event for Indian audiences. The timings of the matches would remain untouched, so that Indian audiences can watch live telecast of the matches at 4 pm and 8 pm Indian standard time.
Shifting of the IPL venue would mean added costs to the franchisers as they would have to move their teams to a different country now. “The beneficiary is always the host country. In a situation like this sponsorships will get diluted and costs will rise,” said Latika Khaneja of Collage Sports Management.
While bigger brands may remain unaffected by a shift in venue, the same cannot be said of smaller sponsors. Said Globosport chief executive officer Anirban Das Blah: “We could see some of the smaller sponsors, who have invested between Rs 30-40 lakh, withdraw their sponsorships as the cost of activating their product in a foreign environment will mean additional and heavier investment. They’ll be affected tremendously. Their investment in IPL could have a diminishing value.”
Most sponsors are waiting for an official announcement to be made before deciding their strategies. DLF, the title sponsor of the event, said that they have got the greatest mileage from the event even without being the biggest contributor. “We have no reason to renegotiate our deal unless the organisers want to,” said Rajiv Talwar, executive director, DLF. However, he agreed that the excitement around the event would take a beating if it was not held in India. Said he, “We now need to see how the event can be televised, the condition of the stadia and what kind of crowds the game will draw.”
The owners, however, remain upbeat. Vijay Mallya, owner of Royal Challengers, praised the organisers for living up to the commitment of organising the IPL and keeping the tournament going. Mumbai Indians’ franchisee Neeta Ambani said, “We’d host it wherever the organisers decide to take us, as long as Indians get to watch.”
The move translates into huge commercial implications for the team owners, sponsors and programmers. “We will spend much more money and may not be able to make profits. But our priority is to get the Indian fans the tournament,” said IPL commissioner Lalit Modi. After being a huge hit last year, IPL 2009 will only be an only-TV event for Indian audiences. The timings of the matches would remain untouched, so that Indian audiences can watch live telecast of the matches at 4 pm and 8 pm Indian standard time.
Shifting of the IPL venue would mean added costs to the franchisers as they would have to move their teams to a different country now. “The beneficiary is always the host country. In a situation like this sponsorships will get diluted and costs will rise,” said Latika Khaneja of Collage Sports Management.
While bigger brands may remain unaffected by a shift in venue, the same cannot be said of smaller sponsors. Said Globosport chief executive officer Anirban Das Blah: “We could see some of the smaller sponsors, who have invested between Rs 30-40 lakh, withdraw their sponsorships as the cost of activating their product in a foreign environment will mean additional and heavier investment. They’ll be affected tremendously. Their investment in IPL could have a diminishing value.”
Most sponsors are waiting for an official announcement to be made before deciding their strategies. DLF, the title sponsor of the event, said that they have got the greatest mileage from the event even without being the biggest contributor. “We have no reason to renegotiate our deal unless the organisers want to,” said Rajiv Talwar, executive director, DLF. However, he agreed that the excitement around the event would take a beating if it was not held in India. Said he, “We now need to see how the event can be televised, the condition of the stadia and what kind of crowds the game will draw.”
The owners, however, remain upbeat. Vijay Mallya, owner of Royal Challengers, praised the organisers for living up to the commitment of organising the IPL and keeping the tournament going. Mumbai Indians’ franchisee Neeta Ambani said, “We’d host it wherever the organisers decide to take us, as long as Indians get to watch.”
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