NEW DELHI: With the entry of two new franchises into the IPL – in Pune and Rajkot – there are new opportunities for brands to gain exposure from the annual cricket tournament.
Sanjiv Goenka, the owner of the Pune franchise, sees the IPL primarily as a branding opportunity for his group companies – the RP-Sanjiv Goenka Group has interests in power, real estate and media.
He explained to the Business Standard that none of the money funding the New Rising team would come from the books of his listed companies. "Whatever amount I end up spending from my pocket for the franchise, I get branding," he said.
The investment was, he added, "a purely commercial decision" and he expected to get into more sports in the future.
"There is a sizeable audience for sports now because most of them are fed up with 'saas-bahu' serials on television," he said. "I am confident that business of sports will be a good venture."
The Rajkot franchise was won by Intex Group, a maker of smartphones. Team owner and Intex director Keshav Bansal, was optimistic that the association with the IPL would contribute to growth and popularity on a global stage.
The two new teams are replacing the Chennai Super Kings and Rajasthan Royals, each of which has been suspended for two years, and so have limited time to recoup their owner's investments.
Media planners have suggested the two new teams could make around Rs 20-25 crore a year from sponsorships, less than established teams as brands could negotiate better deals with smaller untried entities.
But Vinit Karnik, national director at ESP Properties, a sports and entertainment consultancy owned by Group M, thought that the Rajkot team could do especially well.
"This is the first time that an IPL team has come from Gujarat," he pointed out. "The state is a passionate follower of cricket and it has a big base of local business houses, who would love to leverage on the opportunity," he told the Economic Times.
Data sourced from Business Standard, Economic Times, TechRadar; additional content by Warc staff