Mumbai: Indian Premier League (IPL) team Mumbai Indians have signed up three sponsors and is close to a deal with international apparel brand Jack & Jones as IPL teams are busy closing sponsorship deals for the next edition of the tournament starting next month.
Mumbai Indians will get close to Rs 5 crore for putting Jack & Jones logo on its shirt sleeve, while Videocon will pay close to Rs 15 crore for the coveted front of the shirt, said two people with knowledge of the development.
The Mukesh Ambani-owned team has also signed up Middle-East airline Etihad for the back of the jersey for around Rs 10 crore and housing finance company DHFL will pay around Rs 6 crore for its logo to be displayed on the right upper chest slot. Jack & Jones is testing the IPL pitch for the first time. “Talks with Mumbai Indians have reached an advanced stage and the deal will be inked soon,” said one of the persons quoted above. Vineet Gautam, CEO, Jack & Jones India declined to comment. Videocon, Etihad and DHFL have renewed their contracts this year. Venugopal Dhoot, chairman at Videocon, confirmed the deal, but declined to comment on the transaction size. In response to an e-mail questionnaire, a spokesman for Etihad declined to comment saying, “We have nothing to announce”.
E-mails sent to Mumbai Indians and DHFL did not elicit any response as of press time.
Since the IPL and the World Cup are only about a week apart, sector sector watchers have been fearing a cricket fatigue factor, but sports marketing companies and media planners who are negotiating deals between brands and IPL organisers say there is nothing to worry.
“IPL is a set event and therefore, brands also pre-plan their launches and campaigns around it and block money. They know that irrespective of what happens, IPL will get a certain amount of rating,” said Melroy D’Souza, CEO at Professional Management Group (PMG).
While many Indian companies were initially a little apprehensive about investing in the World Cup because of the Indian team’s poor run before the tournament, with the team doing well, many brands have come on board, D’Souza said. “This will have a positive impact on the IPL as well,” he said.
A few other teams have also closed sponsorship deals. Kings XI Punjab, for instance, have signed up Tata Motors Prima as the title sponsor and HTC as the associate sponsor. IPL has been in controversies because of the spot-fixing and betting scandal that emerged in 2013. While the brand equity of the tournament has certainly been hit, companies and brands have still chosen to continue with the league.
Dhoot of Videocon said Mumbai Indians have had no controversy at all. “Also, people will forget about these controversies if India does well in the World Cup. It will help get more eyeballs for the IPL,” he said.
