The Board of Control for Cricket in India (BCCI) is currently grappling with mounting pressure as it seeks to secure lucrative sponsorships amidst a changing landscape. Despite the substantial revenue generated from IPL Media Rights and the potential windfall from BCCI Media Rights, the board finds itself under scrutiny due to the absence of recent International Cricket Council (ICC) trophies. With key sponsors like Byju’s, PayTM, and MPL no longer in the picture, the BCCI is facing increased pressure to secure new partnerships.
In an attempt to attract sponsors, the BCCI has lowered the base price for the India Cricket Team sponsorship to Rs 350 crore. Byju’s, the previous sponsor, had paid approximately Rs 287 crore for the previous tenure, which was later extended until 2023 at a cost of around $55 million or Rs 450 crore.
According to a report in the Economic Times, the BCCI has set the base price for bilateral matches involving the Indian team at Rs 3 crore per match, while for ICC and Asian Cricket Council (ACC) tournaments, the base price is Rs 1 crore per match. These figures represent a significant decline compared to what Byju’s had paid for securing the sponsorship rights in 2018, which amounted to Rs 5.07 crore per match for matches in India and Rs 1.56 crore per match in other locations. It is noteworthy that the BCCI has typically set the base price higher than the previous sponsorship price, making this shift in strategy a response to the current market slowdown.
An anonymous source quoted in the Economic Times explained, “BCCI has set a realistic base price for the lead sponsor rights. The ad market is tough, and the new-age sponsors who were spending large sums of money on cricket have cut their marketing budgets drastically due to the funding winter.”
The BCCI released the tender for front jersey sponsorship on June 14, with interested parties having the opportunity to purchase the tender document until June 26, 2023. This move signifies the board’s determination to secure a new sponsor for the prestigious front jersey placement.
In a recent development, the BCCI managed to secure a kit sponsorship deal with Adidas worth approximately Rs 250 crore. Under this agreement, Adidas will pay Rs 75 lakh per match for a period of five years. Additionally, the BCCI stands to gain Rs 10 crore annually in merchandising royalties.
As the BCCI navigates the challenges of the evolving sponsorship market, it remains to be seen how successful they will be in securing partnerships that align with their financial expectations. With the lowering of base prices and the pursuit of new sponsors, the board aims to adapt to the current economic climate and ensure the continued financial stability of Indian cricket.
