Cash flow continues, unabated
Hero Honda become first associate sponsor, doling out $4m for three years, reports Anand Vasu.cricket Updated: Feb 24, 2008 01:45 IST
While the cash registers might not be ringing for Under-19 cricketers, whom the Board of Control for Cricket in India has instructed to hold back before they sign IPL contracts, the moolah for the BCCI-backed Twenty20 extravaganza continues to come in from elsewhere.
If early moves are anything to go by, the six associate sponsorships together could bring in close to Rs 100 crore.
Hero Honda became the first to get on board, signing on at $4 million a year for three years.
Hero Honda had initially bid for title sponsorship of the overall tournament but their bid fell short of the final 200-crore offer for five years that eventual title sponsors DLF came up with. If the five other associate sponsors pay close to the same amount, the IPL will be richer by Rs 96 crore.
In exchange for this Rs 16 crore, Hero Honda will receive ground advertising space in 15 different locations where 59 IPL matches are scheduled to be played in April and May, including advertising hoardings, boundary runners and panels on the dug out where the players wait while play is on.
The IPL had sent out a note to several corporates who have been associated with cricket tours and tournaments in India and abroad in the recent past. The IPL had suggested that a sum of $7 million per year would be appropriate, HT has learnt, but after negotiations Hero Honda took the first of the six slots available to associate sponsors at $4 million a year for the next three years.
This of course, means more benefit to the franchisees, who stand to receive 60 per cent of the central sponsorship revenue. Aside from associate sponsors, the title sponsorship money also counts towards the central sponsorship revenue.