The JSW group, which is the 50% owner of the Delhi franchise will now be the principal partner of Delhi Capitals. Promoter Parth Jindal, who oversees the JSW group’s paints and cement business and is also part of the steel operations has agreed to be the new principal sponsor for the franchise.
“JSW got a slight discount over what Daikin was paying because of no ticket sales, no meet and greet. But we’ll be showcasing our steel, cement and paints brands during IPL and we will be advertising also on Star and Hotstar,” Jindal declared to Live Mint.
“No one is asking for massive discounts and such negotiations will continue as it is part of the game this year. We will try and avoid giving discounts but instead give value. The only positive side of the pandemic is that it has pushed us to adopt technology and we will be able to leverage it to interact with our fans and spectators,” he added.
IPL 2020 : How much IPL franchises can potentially lose on IPL 2020 ?
Franchises will primarily lose out on 3 accounts from the IPL 2020.
Hit 1 – Franchises will lose on Gate Revenues from the IPL 2020 as no fans are likely to be allowed for the entire IPL 2020. Each franchise collects in a range of 22-28 Cr from the Gate Revenues, but in the 13th edition of IPL, this revenue source will be completely wiped out for the franchises.
Hit 2 – Due to falling economy and uncertainty around IPL 2020, franchises will lose minimum 15-20% of the total values of the team sponsorships. Some are already staring at huge loses on this account. Each franchise earns in a range of 50-75 Cr from the team sponsorships with exceptions like Mumbai Indians who has claimed recently that they have crossed the milestone of 100Cr from the team sponsorship component.
Hit 3 – As Dream11 has been signed as IPL 2020 title sponsor @ 51% discount of VIVO’s values, this will directly impact the franchises coffers. 60% of the total central sponsorship pool gets distributed among the 8 franchises.
According to the InsideSport’s estimate, each franchise from the 3 components will lose in a range of 70-75 Cr.
Not only this, franchises will have to take hit from another account, that is the escalation in the costs. The IPL 2020 is moving to UAE, which means extra expense on the franchises head. In comparison to IPL in India, franchises will end up spending more on logistics (travel – accommodation), creating bio-bubble for the team, arranging practice facilities for the team in UAE and on the other requirements.