After the BCCI floated the Expression of Interest for the IPL 2020 title sponsorship on August 10, e-commerce, ed-tech and even pharma companies have emerged as frontrunners to bag rights for this year’s edition
The Indian Premier League (IPL) title sponsorship rights for this year's edition may go to a company which has not been associated with cricket, or the cash-rich league in the capacity of a lead sponsor, according to an expert.
According to sources, Amazon is being tipped as the top contender to win the rights.
"The IPL will happen in the festive season and as the deal runs till December 31, 2020, the scope for merchandise and exclusive offerings also will play a part in this scenario," sources said.
A top source in the Board of Control for Cricket in India (BCCI) told Moneycontrol that it is expecting the deal size to be in the range of Rs 225-250 crore.
"In this environment with so little time left and just a one-year sponsorship on offer, the BCCI is expecting the amount to be somewhere in the range of Rs 225-250 crore but it can go beyond as well," the source said.
E-commerce, ed-tech and even pharma companies have emerged as frontrunners to bag the title sponsorship rights for this year’s edition, according to Lloyd Mathias, business strategist and angel investor.
"While certain categories like mobile handsets won't be in contention, it is a great opportunity for categories like ed-tech, food delivery platforms, e-commerce and pharma companies. Digital payment platforms like PhonePe and Google Pay will also be actively looking at it. The field is open, and there will be no dearth of companies picking up the tender," Mathias told Moneycontrol.
"However, I believe the BCCI will not get the Rs 440 crore it was slated to get from Vivo. Also, the company which picks up the IPL title sponsorship rights will have to keep some amount aside for buying on-air time on Star. I believe the deal amount will be in the range of Rs 250-300 crore," he added.
Although the viewership figures for this edition are expected to breach previous records due to lack of live domestic sports content in the past few months, Mathias said Star won't be able to rake in the advertising revenues as per its liking.
"The advertising pool is going to shrink a bit primarily because of two reasons. One, a lot of Chinese brands will stay out of advertising this year. Secondly, a lot of mainstream Indian consumer goods brands are also not going to spend heavily because of subdued economic sentiments," he said.
Mathias said it would be a great opportunity for a new company to increase its brand visibility.
"Ed-tech companies like Byju’s and Unacademy are reportedly in the running. It offers a great opportunity for them in terms of scaling their brand visibility," he said.
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