IPL teams may hit it out of the park with sponsorships

The sponsorship revenue accrues from logo display of brands on jerseys, trousers and helmets of players besides digital activations.

“The cumulative sponsorship would be around ‘1,000-1,200 crore for all the IPL teams combined, this does not include the team’s share of central sponsorship revenue and other earnings,” ITW Catalyst CEO Paroksh Chawla told ET.

Chawla said the sponsorship revenue for IPL teams could range between ‘100 crore and ‘120 crore per year depending on the team.

“While most of the teams have closed the available sponsorship slots, there are a few top slots like the front of jersey slots that are available for the IPL teams and additionally a few more have smaller slots like the leading helmet, leading trouser, etc which are still open,” he added.

According to market sources, IPL teams Kolkata Knight Riders, Royal Challengers Bangalore, Sunrisers Hyderabad and Rajasthan Royals are in talks with brands to close the front jersey sponsorship slots.

Sources further added that the four teams are seeking multi-year sponsorship deals and the asking price ranges from ’20 crore to ’26 crore a year.

The teams refused to comment on the development.

Apart from the front jersey, a lot of the other sponsorship assets like the leading and back of the helmet, leading and non-leading arm, leading and non-leading trousers, and back jersey are also on offer.

The asking rates for these sponsorship assets range between ‘2 crore and ’10 crore a year. The franchises are seeking one-year as well as two-year deals with sponsors for these assets.

Punjab Kings CEO Satish Menon said the franchise has renewed its front jersey sponsorship deal with Ebix Cash. It has also roped in Hindware as the leading helmet sponsor.

GMR JSW Sports-backed Delhi Capitals CEO Dhiraj Malhotra said that the franchise has closed 90% of its sponsorship deals.

Chawla said team sponsorships are big-ticket items that guarantee access to big stars and great visibility depending on the teams. He added that there is a lot of interest from brands and most teams close their inventory well before the start of the season.