In a groundbreaking development for the Indian Premier League (IPL), Tata Group, one of India’s largest conglomerates, has successfully acquired the broadcasting and sponsorship rights for the highly anticipated 2022 and 2023 IPL seasons. This move has sent shockwaves through the cricketing and business communities, setting the stage for an exciting new era in the IPL’s history.
How the Announcement came
The announcement came during a press conference held by the Board of Control for Cricket in India (BCCI), the governing body of the IPL. BCCI President expressed his delight at Tata Group’s entry into the IPL fold, stating that the partnership would undoubtedly elevate the league’s reach and enhance the overall viewing experience for fans.
Avenue for Growth
With its vast portfolio of companies spanning various sectors, including telecommunications, steel, automotive, and consumer goods, Tata Group brings immense financial prowess and strategic expertise. Their entry into the IPL marks a significant shift in the league’s operations and opens avenues for innovation and growth.
According to NewsInsiderIndia, Tata Group has taken the rights for the 2022 and 2023 Indian Premier League seasons after agreeing on a deal worth $60 million (£43.2m) with Cricket Board, BCCI. The India-based firm will also sponsor five international cricket matches annually in a three-year deal worth around $18 million (£12.6m).
“It is not just about sponsoring them,” said Ratan Tata, former chairman of India’s largest conglomerate. “It is about developing a solution for the next five years. We want to help grow the game of cricket.”
What the Deal Entails
The deal is significantly smaller than that signed by PepsiCo in 2005, which was worth $75 million and was also due to run until 2023. Cricket administrators have often been criticised for placing too much emphasis on money and commercial interest despite the sport being considered a force for nation-building in many countries where it is played. However, the game’s administrators realize that running cricket like a business is the only way forward.
Despite the signing of this new deal, Cricket Board will continue to be the title sponsor of the domestic Twenty20 competition in India, the Indian Premier League. The partnership with Tata Group will see the group sponsor five international one-day matches per season, and one each for games played between India and New Zealand, West Indies and Sri Lanka. It has also been confirmed that Tata Group will sponsor domestic men’s and women’s tournaments and is expected to give a large sum of money to the Karnataka state cricket association responsible for running domestic cricket in India.
Sources close to the deal say the BCCI will make around $1 million (£640,000) for each of the five international matches compared with its previous arrangement, where it received $200,000 (£129,000) per match.
“This is one of the biggest deals in Indian sports sponsorship,” said Shailendra Singh, chief executive of Basis Sport Management Pvt Ltd. “The board is just looking at a big picture and not just focusing on money but also building a bigger fan base.”
The real peace here lies in the fact that the Cricket Board is now focusing on getting some real income from cricket instead of depending on selling jerseys and sponsorships. We should only rely on subsidies for payment. The board needs more money to pay the players and the groundskeepers, so they are forced to sell their services for lower prices. If Cricket Board focuses on improving the quality of cricket, it would be easier for them to sell some sports goods and receive some income from that.
The Benefits That Comes with The Rights Acquisition.
- This becomes an absolute necessity to make cricket a lucrative sport. The players should get decent salaries so they do not depend on others.
- This would also encourage more people to participate in cricket and other related sports, such as football and hockey.
- This is a good change and should be followed to improve cricket and bring it into prominence in other countries. In the past, the IPL was very profitable for all those involved as it was always hailed as a successful experiment, but if they had continued with the same policy, things wouldn’t have turned out this way.
- This will impact the number of sponsorships and sponsorship deals Cricket Board will be signing in the future, but it is a significant step forward. If they decide to take these actions, they will also have more financial stability in the future.
The board has decided to take a different approach. They will no longer look at the sponsors to increase their income and will focus on improving the quality of cricket itself. This is quite a logical step because you need to make your product better to reach out to millions of people.