 "Sponsor confidence in Kings XI on the rise")
The Kings XI Punjab (KXIP) had a near-perfect run in the Indian Premier League's (IPL) 2014 season, as it finished runner-up. As a result, the team, co-owned by Preity Zinta, Ness Wadia, Karan Paul and Mohit Burman, has managed to retain Tata Prima as its title sponsor and increase its average sponsorship fees by almost 30 per cent this year. Four other sponsors are also on-board, while others are yet to declare their sponsors for the eighth season.
Tata Prima renewed its contract at the end of February, a first for KXIP. "This is the first time in the history of the team that the title sponsor has come back for a second year. The team's performance on the field last year has helped us increase the rates, and as a result, the title sponsorship comes at almost a 50 per cent premium to last year," says Fraser Castellino, COO, KXIP.
Ravi Pisharody, executive director, commercial vehicles, Tata Motors, says, "Kings XI Punjab...is one of the most exciting franchises with some of the finest records. We wish "The Lions" the very best for this season."
Mohit Burman, the co-promoter and director of the franchise, says, "This extension testifies the faith the brand instills in the franchise and on this note, we are geared to enter the season with the confidence to excel."
The franchise has the backing of other advertisers such as the mobile handset brand HTC (principal sponsor), Britannia, Kingfisher and Amazon.in. Castellino says that it is eyeing five to seven more partners in the next few weeks.
"Its earlier seasonal sponsorship (short term) deals have paid off, as it can now demand a premium, leveraging its previous season. The enquiries for partnership have also increased. A 30-per-cent increase in the average sponsorship rates is expected," says a sports management executive.
Industry estimates peg the title sponsorship for a team like KXIP, last year, at around Rs 12-15 crore. Having finished second in the league, the rate could rise to Rs 20 to 22 crore. The associate sponsorship and partnership fees, too, are slated to go up.
"What is important is that the composition of the team and the management have not been changed. It bought just three new players and the coach and manager are the same as last year. This increases the confidence in the team, not only for the fans, but also the brands," says the sports manager.
Castellino agrees that having a stable team composition sends out a strong message to potential sponsors. He adds that the strategy for the auction was tied to managing costs. The team went into the auction with Rs 12.6 crore and spent Rs 3.4 crore on three players. It spent a major chunk - Rs 3 crore on Murali Vijay. Co-owner Zinta had said earlier that the plan was to only concentrate on filling the gaps in the team and keep the original composition of the team unchanged as far as possible.
The team's coach, Sanjay Bangar, brought in some major reforms last year and paid special attention to player acquisition. Through the year, he made trips to various cricket camps throughout the country to shortlist players, who then made up the team for IPL 7.
Castellino says that the team, thanks to its cost management, was able to post a surplus of Rs 14 crore last year. Most of the teams suffered losses last year because the tournament was partially held in the UAE. Of course, it helped that KXIP got the prize money for finishing second. The team later played in the Champions League T20 and made it to the semi-finals.
Apart from sponsorships, the team is also banking on licensing revenue. The segment is not yet big in India as no team in the IPL has managed to exploit this revenue stream to the fullest.
Castellino says, "Last year, we were the highest-selling franchise on Amazon.in. We were well prepared to replenish exhausted stock, which helped us move our goods faster. This year too, the site has already placed a bulk order with us." The first bulk order is worth Rs 50 lakh and Amazon is also a sponsor.
KXIP will play its first match on April 8, 2015, against Rajasthan Royals at the MCA International Stadium, Pune.
Tata Prima renewed its contract at the end of February, a first for KXIP. "This is the first time in the history of the team that the title sponsor has come back for a second year. The team's performance on the field last year has helped us increase the rates, and as a result, the title sponsorship comes at almost a 50 per cent premium to last year," says Fraser Castellino, COO, KXIP.
Ravi Pisharody, executive director, commercial vehicles, Tata Motors, says, "Kings XI Punjab...is one of the most exciting franchises with some of the finest records. We wish "The Lions" the very best for this season."
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Mohit Burman, the co-promoter and director of the franchise, says, "This extension testifies the faith the brand instills in the franchise and on this note, we are geared to enter the season with the confidence to excel."
The franchise has the backing of other advertisers such as the mobile handset brand HTC (principal sponsor), Britannia, Kingfisher and Amazon.in. Castellino says that it is eyeing five to seven more partners in the next few weeks.
"Its earlier seasonal sponsorship (short term) deals have paid off, as it can now demand a premium, leveraging its previous season. The enquiries for partnership have also increased. A 30-per-cent increase in the average sponsorship rates is expected," says a sports management executive.
Industry estimates peg the title sponsorship for a team like KXIP, last year, at around Rs 12-15 crore. Having finished second in the league, the rate could rise to Rs 20 to 22 crore. The associate sponsorship and partnership fees, too, are slated to go up.
"What is important is that the composition of the team and the management have not been changed. It bought just three new players and the coach and manager are the same as last year. This increases the confidence in the team, not only for the fans, but also the brands," says the sports manager.
Castellino agrees that having a stable team composition sends out a strong message to potential sponsors. He adds that the strategy for the auction was tied to managing costs. The team went into the auction with Rs 12.6 crore and spent Rs 3.4 crore on three players. It spent a major chunk - Rs 3 crore on Murali Vijay. Co-owner Zinta had said earlier that the plan was to only concentrate on filling the gaps in the team and keep the original composition of the team unchanged as far as possible.
The team's coach, Sanjay Bangar, brought in some major reforms last year and paid special attention to player acquisition. Through the year, he made trips to various cricket camps throughout the country to shortlist players, who then made up the team for IPL 7.
Castellino says that the team, thanks to its cost management, was able to post a surplus of Rs 14 crore last year. Most of the teams suffered losses last year because the tournament was partially held in the UAE. Of course, it helped that KXIP got the prize money for finishing second. The team later played in the Champions League T20 and made it to the semi-finals.
Apart from sponsorships, the team is also banking on licensing revenue. The segment is not yet big in India as no team in the IPL has managed to exploit this revenue stream to the fullest.
Castellino says, "Last year, we were the highest-selling franchise on Amazon.in. We were well prepared to replenish exhausted stock, which helped us move our goods faster. This year too, the site has already placed a bulk order with us." The first bulk order is worth Rs 50 lakh and Amazon is also a sponsor.
KXIP will play its first match on April 8, 2015, against Rajasthan Royals at the MCA International Stadium, Pune.