After two back-to-back exits of its previous lead sponsors-edtech major Byju’s and Chinese mobile brand Oppo-the Board of Cricket Control in India (BCCI) has reportedly slashed its lead sponsorship price by a whopping 40 per cent for the upcoming contract.
Media reports citing the latest tender document for lead sponsorship (Jersey partner) say that the BCCI has kept the base price for each bilateral match at domestic turf at Rs 3 crore.For the International Cricket Council (ICC) and Asian Cricket Council (ACC) matches, the base price is merely Rs 1 crore.Byju’s, which was the BCCI’s lead sponsor till March this year, was paying a whopping more–₹5.07 crore for each match played in India and ₹1.56 crore per match for ICC and ACC tournaments.Oppo was also shelling out almost a similar amount.
It is noteworthy that Oppo bagged the jersey sponsorship deal in March 2017 for five years at Rs 1,076 crore.
However, after realizing that the deal was unviable, the brand made an exit by transferring its sponsorship rights to Byju’s in 2019.BYJU’s also exited midway, giving rise to speculations that the BCCI’s sponsorships are unviable.
However, experts expressed surprise over the revised price, especially since it has come at a time when the India economy is in far better shape and marketing spends have started going up after a muted growth in the last couple of quarters.
Several media planners e4m spoke to call it a “price correction” and “rationalization” by the world’s richest cricket body.
“The current base price is a far more realistic number as against the earlier one.With BCCI baring multiple categories from bidding for the position, this base price seems to be the correct number to go ahead with,” says Jigar Rambhia, COO of Sporjo.
Rambhia added, “Besides, a lot of new-age brands aren’t advertising due to the funding winter, so it may not be very easy to get a brand at this amount.”
While Byju’s and Oppo could not be reached for comments, experts feel that both the companies were paying “over the top ” which was not feasible in the long term.
“Byju’s was paying an obscene amount of money, therefore the BCCI will have to make some adjustments.
Even the company prior to Byjus’ overpaid.
A correction is required given the current market conditions,” several media planners pointed out.
“Volatile market conditions in the post-pandemic world, inflation, funding winters and gloom in the tech sector further deteriorated the sponsorship scene,” a startup head said.
Cheers among prospective sponsors
The development has energized the prospective sponsors as the new price band is far more affordable than the past.
“Lead sponsor rights could be a great opportunity for brands to create long-term value,” a senior executive from a leading startup said.
It is noteworthy that in the fresh tender document, the BCCI has banned companies involved in betting, crypto-currency, tobacco and real-money gaming organizations from bidding for these rights.Some brands from these categories have been sponsoring cricket, thanks to VC fundings.
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