India’s victory against Sri Lanka Down Under on Wednesday is not the only relief for the Board of Control for Cricket in India (BCCI). Caught on the back foot by Sahara’s sudden withdrawal, BCCI can take heart from the fact that many of India Inc’s leading lights have shown interest in sponsoring the Indian cricket team.
At least two persons with direct knowledge of the developments say Reliance Industries, Hero MotoCorp, Future Group and BCCI’s domestic cricket sponsor Bharti Airtel are in the fray.
Sahara has indicated to BCCI that it is likely to move out of the Team India sponsorship after the tri-series in Australia. Sahara has been the sponsor of the cricket team since 2001 and its deal with BCCI, at Rs 3.34 crore per match, was to end on December 31, 2013. BCCI and Sahara officials are scheduled to meet on Thursday on the sponsorship issue.
When contacted, Future Group Chairman Kishore Biyani said, “Let’s see when the bid documents come out. It’s too early to say anything now.” A Reliance Industries spokesperson said he would not comment on market speculation, while the Airtel spokesperson termed it market speculation. An email sent to Hero MotoCorp did not get any response.
N Srinivasan, president, BCCI, refused to comment on the issue. But, there is some hard bargaining in store with prospective sponsors.
Most marketing agents believe the brand value of the Indian team isn’t the same any more, with a fall in viewership, Team India’s poor performance and too many organisational setbacks in BCCI.
“For the long run, Team India is good property. There are takers but seeing the current situation, BCCI may not be able to command a premium or negotiate a good deal. The price Sahara paid will be an expensive proposition. So, the price could be significantly lower. There will be cost correction in the game,” said Indranil Das Blah, chief operating officer, KWAN Entertainment and Marketing Solutions.
The situation is almost similar to that during the Champions League last year, when telecom giant Bharati Airtel pulled out of the title sponsorship even before the three-year deal ended. Nokia signed on at a much lower amount.In 2009, BCCI had invited bids for the team sponsorship, with the base price set at Rs 510 crore for four years (around Rs 3 crore a match ) but had found no takers as the price was considered too high.
The board was forced to reduce the base price to Rs 2.5 crore a match. Telecom giant Airtel and Sahara were the sole bidders, with Rs 2.7 crore and Rs 3.34 crore a match, respectively.
(With inputs from Raghavendra Kamath )
