Thumbs up: Happy days are here again
A strong rebound in the domestic economy has ensured that the third season of the Indian Premier League (IPL) will nearly double the sponsorship revenues of each of the eight team-owners compared to last year.cricket Updated: Mar 18, 2010 00:37 IST
A strong rebound in the domestic economy has ensured that the third season of the Indian Premier League (IPL) will nearly double the sponsorship revenues of each of the eight team-owners compared to last year.
Team sponsorships, which on an average fetched Rs 24 crore for each team owner last year, is set to garner an average revenue of Rs 40 crore this year.
Sources, who did not wish to be identified, said that the Mumbai Indians, are set to fetch the highest revenue of Rs 48 crore this year.
IPL organisers and team owners have carved out new slices of revenue, monetising every potential source from Internet, movie theatres, mobile phones and even the "strategic time out" sessions.
From merchandise sales to team jerseys and kits, insurance, chewing gum deals and radio and flying partners, team owners have managed to extract revenue from every possible source.
For instance, private life insurance company HDFC Standard Life has announced its second year of association with the Rajasthan Royals. Under the terms of agreement, HDFC Standard Life is the associate sponsor in the third season of the IPL.
It also plans several activities in the coming months with the Royals and some of them include financial planning sessions for young players in the team.
The association also leads to lots of other on-ground initiatives.
The other team owners have worked out similar sponsorship deals.
The revenue earned from each of these deals will be channelised into the central revenue pool, a proportion of which is given away to the team owners in what is basically a pre-determined formula.
For instance, industry sources said tyre major MRF is dishing out Rs 16 crore for the blimp at match venues while Maxx has inked a Rs 20 crore per annum deal as the strategic time out partner.