Following his stellar performance against Punjab Kings in Bengaluru, Virat Kohli’s statement about not playing for accolades may have caught attention. Notably, the orange cap awarded to Kohli lacked a sponsor’s logo, highlighting an unusual occurrence in Indian Premier League (IPL) sponsorship.
In a surprising development, two prominent sponsorship slots – the Orange & Purple Cap and the Umpire’s partner – have remained unsold well into the first week of IPL 2024. This departure from the norm is unprecedented, given the typically high demand for IPL sponsorship opportunities.
Over the past two editions, IPL witnessed a surge in central sponsorship revenue, contributing over ₹1000 crore annually to the BCCI coffers. However, the ongoing edition faces a revenue shortfall of nearly ₹200 crore, despite Tata’s continued title sponsorship and increased associate sponsorship proceeds from fantasy gaming.
While media rights remain the primary revenue source for IPL, the lack of associate sponsors and unsold sponsorship categories tarnishes the BCCI’s image. IPL franchises are increasingly exploring diverse sponsorship avenues, from ice cream partners for SRH to water bottle sponsors for RCB.
Notably, recent Saudi sponsors, Saudi Tourism and Aramco, have not extended their deals, citing preferences for long-term commitments or avoidance of auction participation. However, there is still hope for last-minute deals, according to IPL officials.
Critics argue that certain IPL sponsorship categories require urgent reevaluation, citing the Orange and Purple Cap awards as examples. These awards, instituted in 2008, often prioritize individual statistics over team performance, leading to concerns about their relevance in the modern, data-driven T20 landscape.
In light of these developments, questions arise regarding the fair value of IPL sponsorship deals, particularly when IPL franchises offer sponsorship opportunities at potentially lower costs. As the IPL continues to evolve, stakeholders must reassess sponsorship models to ensure alignment with the league’s evolving dynamics and commercial demands.
