As all of us are aware of the “boycott china” movement, the IPL also took to this and, suspended the contract with Vivo with the backlash against Chinese brands. With a need for a new title sponsor for the tournament, there were various bids that were made by leading conglomerates to bag this super deal.
The IPL is one of the most-watched tournaments, making around 40 million impressions. With the Coronavirus still at its peak, IPL 2020 is said to take the entire eyeballs of people which is going to further increase the viewership for the game. Such a high level of promotion and recognition for the brand, who would want to lose the opportunity of being the title sponsor, right?
Major brands like Bjyu’s, Patanjali, Tata Sons, Reliance Jio, Unacademy, Infocomm and dream 11 had shown interest in being part of the IPL 2020, going to happen in UAE. Now, coming to the major details of the title sponsorship, dream 11 has finally acquired the sponsorship deal by paying a huge amount of money.
A loss for BCCI – IPL
The deal between IPL 2020 and Dream 11 is for 222 crores, and this is just for the time till December 31st of 2020. Which further means that in case the tournament gets postponed during the year, Dream 11 would still be their title sponsor. It is unlikely to happen that the IPL 2020 will not take place on September 19.
Even though the amount 222 crores is huge for this period of 4 months and 13 days, if we take a look at the past deals of sponsorship, we have come to know that Vivo had paid BCCI, a huge sum of 2177 crores for a 5-year period. Which means that approximately the deal for one year was around 435.4 crores, this amount is almost double for which Dream 11 got the sponsorship. BCCI fell short by 213. 4 crores for IPL 2020, a huge sum they lost because of the backlash of Chinese products and brands.
Even though this is a huge loss for BCCI in monetary terms, they seem to have taken it in a positive manner. Replacing a sponsor in such a short time is also difficult when the tournament in itself was on a question mark with the pandemic around the corner.
But, one question still remains that Dream 11 is financially backed by the Chinese giant Tencent. So, does that mean that the sponsor is still a Chinese company? Even though BCCI is focusing on the aspect that Dream 11 is still an Indian company and not a Chinese one and, Tencent only owns a single number stake. Further to add to this, Dream 11’s founders are Indians and, the fantasy gaming application is only available for Indian users.
What do you think about this deal? is this sponsorship going to change the entire air about IPL, with the sponsorship deal going down almost by half, is this the future we are looking at? Should the deal be a learning lesson for companies to realize that they are overpaying?
Do let us know what you think and, reach out to us!
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