IPL 2020 title sponsorship: Tata, Jio, Patanjali among firms in the fray

Unacademy, Patanjali also among Indian contenders; Byju's and Dream11 too enter bids

The Board of Control for Cricket in India (BCCI) will go for a home-grown entity as the title sponsor of the 2020 edition of the Indian Premier League (IPL), top sources have told Business Standard.

The move is in keeping with the overall spirit of having a local sponsor for the T20 tournament, counted among the world's most valuable sporting properties.

Erstwhile title sponsor Vivo has taken a break from the tournament this year following pressure to boycott Chinese goods in the wake of the stand-off between Indian and Chinese soldiers in June.

The Tata Group, e-learning app Unacademy, Reliance Jio and Patanjali are the Indian players in the race for title sponsorship, persons in the know said. Dream11 and Byju's have also placed bids, they said. Amazon, which had initially expressed interest, has not entered a bid yet. Friday was the last day for receiving formal expressions of interest, according to the BCCI.

The cricketing body had stated that only those firms with a minimum turnover of Rs 300 crore would be eligible to bid for the title sponsorship rights. The rights are valid for a four-month period, starting August 18 and ending December 31. The bids will open on Tuesday, after which franchises will head to the United Arab Emirates (UAE) where the tournament will be held.

 

 

BCCI, said sources, could settle for Rs 200-250 crore as title sponsorship amount, choosing to focus on the brand fit of the bidding party with the IPL rather than going with the highest bidder. Bids, however, are expected to top Rs 300 crore, given the deep pockets of most of the players in the race for the title sponsorship rights.

While the buzz around Dream11, an existing IPL partner, was strong earlier, the issue of Chinese investment in the firm (from Tencent) will be tricky to navigate, said persons in the know.

The same problem exists for Byju's, a big investor in cricket. Byju's has the jersey rights of the Indian cricket team and is also a TV sponsor of the IPL. Existing IPL partners Swiggy and PayTM also have Chinese investments in them, though these firms have not bid for the title rights.

Jio, Tata and Patanjali have none of these issues plaguing them. But, Jio's parent, Reliance, is the owner of the Mumbai Indians franchise, which could be a potential conflict of interest, persons in the know said. Patanjali, on the other hand, has brand-fit issues, they said.

A 2019 study by consultancy firm Duff & Phelps had valued the IPL at $6.8 billion, up from 7 per cent the previous year. The BCCI, which owns and runs the league, will organise the tournament in the UAE from September 19. This is the first time that the tournament will be held in the festive season in the second half of the year instead of the annual April-May season.

IPL broadcaster Star-Disney has already jacked up television ad rates by around 20-25 per cent for the 2020 edition, said sources in the media industry, though there are expected to be some hard negotiations given the current environment.

While most media planners and buyers expect the festive season to see an uptick in advertising, companies are likely to keep a close watch on their ad budgets. Vivo was forking out Rs 440 crore annually towards the title sponsorship and had already completed two years of its five-year contract.

The company may now get into a fresh contract in 2021 for a three-year period with the BCCI. While other Chinese handset brands are reviewing their plans around IPL, this could change if a Chinese or Indian company comes on board as title sponsor.