Future Group has reportedly decided to end its five-year association with the Indian Premier League.
The Board of Control for Cricket in India continues to feel the heat of the COVID-19 pandemic impact. Hosting the IPL Season 13 behind closed doors at an offshore venue will diminish ROIs for the league’s sponsors. A weaker economy in the aftermath of the COVID-19 pandemic has also affected the brands spending capabilities.
Future Group has reportedly decided to call off its associate sponsorship contract for the IPL after failed re-negotiations with the BCCI.
Financially struggling Future Group has reportedly sold its main business to the Reliance Industries Limited. Monetary issues for the company, which had reportedly offered its real estate to the creditors, could be the real big reason for the fall of the deal.
The BCCI though has been successful in roping in e-learning platform Uncademy and member-only credit card brand Cred as associate sponsors. But Future Group’s exit will leave a hole in the BCCI coffers, which had already taken a hit of ₹ 218 crores in the bargain to rope in Dream11 to replace Vivo as the IPL 2020 title sponsor.
Exit for the Future Group, however, would have come at a cost. “Future Group wanted to exit as it found the costs too steep and re-negotiation did not yield much. However, BCCI would have only agreed to it if they paid the penalty,” Exchange4meida has reported quoting a source.
The weaker economy, coupled with the change in the IPL schedule and venue, has earlier seen Byju’s and Daikin Air-conditioners opting out as the respective principal sponsors of Kolkata Knight Riders and Delhi Capitals.
The brands are engaged in renegotiations with the franchise owners. The bargain is for the “estimated costs” of the deliverables which the brands will not be able to avail under present circumstances. However, at least two “firsts” in the history of the IPL should augur well for the stakeholders.
The league for the first time is being played during the Diwali season, the peak marketing time in India. In yet another first, the matches will be starting at 7:30 pm, half an hour early than the past, ensuring more prime time LIVE broadcast for the games.