Sports

IPL 2024 Teams Face Sponsorship Challenges Amid Funding Winter and Ad Spend Cuts

Numerous firms are cutting back on their marketing expenditures, which puts pressure on advertising. The Indian Premier League (IPL) teams have nevertheless been successful in luring in a few sponsors.

“At first, the reaction was ambivalent. However, we have had such a great reaction in the previous ten days that we had to decline certain companies since we were out of bargains. It is projected that sponsorship revenue will rise by 10–20% in 2024, according to Punjab Kings CEO Satish Menon.

In addition to Dream11 on the front of the team shirt, Jio, BKT, Astral Pipes, Avon Cycles, and Lava Mobiles are among the sponsors the team has inked. Most of them are still going strong, although a couple just signed contracts. According to Menon, more than half of the sponsors have been kept on board.

According to Menon, a few digital agreements for associate partnerships are also being signed. He did point out that they are extras and only account for a small portion of jersey sponsorship.

In the lead-up to the March 22 start of IPL 2024, franchises are hard at work finalizing sponsorship agreements. Due to the general elections, which begin on April 19, only the schedule for the first two weeks of the IPL has been released thus far.

Sponsorship Challenges and Opportunities in IPL 2024

The team heads stated that it is difficult to raise sponsorship during an election year and that this year’s franchise sponsorships were impacted by other factors.

According to Gujarat Titans Chief Operating Officer (COO) Colonel Arvinder Singh, NFTs (non-fungible tokens) were a significant category. According to Singh, sponsorship will rise by 24–25% this year to Rs 90 crore. The squad, which debuted in 2022, saw a 38% increase in sponsorship income the previous year.

Depending on the team, sponsorship income might range from Rs 50 crore to Rs 100 crore.Additionally, a sizeable portion of firms’ marketing budgets in FY24 came from their chance to advertise during the Cricket World Cup.

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This year, a number of key rights for the IPL as a whole were up for grabs, such as associate partnerships and title sponsorship, which have reduced the amount of franchise sponsorship available. Furthermore, new leagues have emerged, such the Indian Street Premier League (ISPL), which aims to attract sponsorship.

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