India news August 28, 2012

Title sponsor ends IPL association

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DLF Ltd, India's largest real estate firm, has decided not to renew its title sponsorship of the IPL, ending its five-year association with the tournament. The company had the first right of refusal on a new contract, but was considered unlikely to sign up a second time given the slump in the real estate market and the decline in the IPL's television ratings over the last two years.

"Sponsoring IPL over the last five years was a strategic decision wherein we wanted to establish our brand presence across India as the leading real estate player," Rajeev Talwar, DLF Group Executive Director told PTI. "Our IPO came in 2007, a year before the IPL started. We were very aggressive pan-India then. We had good presence in all big cities." The company is now concentrating on those cities where its core strengths lie.

According to Talwar, DLF spent Rs 250 crore (US$ 44.96 million) on the IPL over the five years of its contract. While it has pulled out of the Twenty20 league, it still has plans to promote other sports, though Talwar ruled out owning a franchise or a team. He also said the amount of money the company would spend "will be less than Rs 50 crore ($9 million) a year that we spent in IPL."

The company's decision not to renew their deal with the BCCI is also another indication of the value of the IPL taking a hit over the last couple of years as TV ratings have flattened. Ratings for IPL 5 were just about in line with 2011. The overall tournament rating was 3.45, compared to 3.51 a year ago, according to Tam Sports, a division of TAM Research, the leading television ratings agency in India. In contrast, the 2010 tournament had an average TVR of 5.51.

In April, Talwar told the Business Standard that renewing the contract "depends on how do they [the BCCI] perceive the value." The BCCI had indicated any new sponsorship agreement would be for a higher value than the original agreement. DLF was obviously not willing to meet the board's asking price. In a climate where the general economic situation is worsening - revenues for Multi-Screen Media, the tournament's broadcaster, dropped this year as companies cut back on advertising - means the board could have a tough time finding a replacement sponsor at the price that they desire.

DLF is the third title sponsor to pull out of a BCCI backed tournament in the last two years. Airtel pulled out as title sponsors of the Champions League T20 in 2011 while their replacement, Nokia, pulled out earlier this year. DLF is already involved in golf and tennis. It provides prize money of about Rs 1 crore ($179,000) to the winner of the annual DLF Masters and is one of the sponsors of this year's Davis Cup, on which they will be spending Rs 2 crore, according to Talwar.

Tariq Engineer is a senior sub-editor at ESPNcricinfo

Comments have now been closed for this article

  • POSTED BY Shan--IND on | August 31, 2012, 11:58 GMT

    Its silly so many people cant see the thing properly... read again... it says DLF is not continuing becoz for the next contract period the price is going to be double/treble... DLF won the 1st title rights wen IPL was not even started... the franchise value rose from US$50M as base price in the beginning to now US$350-400M... similarly the title rights is going to be 3x to 5x more...

    not many in India knew abt DLF before IPL, now not jus India even the world heard abt DLF... thats the value IPL provides to a sponsor... so there will be many more who can pay more & get the return value out of it...

  • POSTED BY Sakthiivel on | August 29, 2012, 18:30 GMT

    We will have a news in few days saying IPL gets new sponsor which double or triple the old deal..

  • POSTED BY Desilathha on | August 29, 2012, 16:32 GMT

    BCCI will get another sponsor with even better offer for sure. People need to understand Tv ratings, though the tournament score has reduced but number of people increased too. Number of people watching the IPL rose in 2012 than in 2010.

  • POSTED BY ashok16 on | August 29, 2012, 16:14 GMT

    I think this is just a sign that the real estate bubble in India is about to burst. IPL contract for the coming years will be a marginally bigger one than the previous one. IPL is here to stay but the rule makers and marketers will need some improvement.

  • POSTED BY wolf777 on | August 29, 2012, 13:05 GMT

    No more 'DLF Maximum'....it wasn't maximum with short boundries anyway...

  • POSTED BY serious-am-i on | August 29, 2012, 12:36 GMT

    @CRLShamalka: What kind of market do u have in SLPL ? You have Indians buying your teams, ur countrymen can't even afford to be sponsors and u expect SLPL to be a touch ahead of IPL, then u r joking. If Mahindra wants to sponsor IPL it will take a toll on them, Mahindra only started in SLPL because they started their market expansion only recently, its a business decision. IPL is not going away my friend. IPL will stay may be a bit less glamorous. Not even 10% of IPL viewers are watching SLPL, so don't dream too much. @Dharshan Tharmakulasingam: Lets not talk about SLPL shall we ? @GerrardLK: Sorry to disappoint you but IPL isn't going anywhere my friend.

  • POSTED BY SurlyCynic on | August 29, 2012, 12:12 GMT

    This is a day to give thanks. No more DLF maximums. Every year I start watching the IPL to see old legends like Gilly, but after a few matches of hearing Danny Morrison screaming 'he's DLFed it into the stands!!!!' I can't watch any more.

  • POSTED BY on | August 29, 2012, 11:37 GMT

    Have some meaningful sponsor please.

  • POSTED BY on | August 29, 2012, 10:57 GMT

    I dunno what this news means to the others, but for me it's a relief, for I won't have to hear another shout of "DLF Maximum!"

  • POSTED BY The-love on | August 29, 2012, 10:52 GMT

    @Ajay Vijayan :-I don't know in which world u r living man....All around world people are watching IPL.....Crowd is gonna increase only....

  • POSTED BY Shan--IND on | August 31, 2012, 11:58 GMT

    Its silly so many people cant see the thing properly... read again... it says DLF is not continuing becoz for the next contract period the price is going to be double/treble... DLF won the 1st title rights wen IPL was not even started... the franchise value rose from US$50M as base price in the beginning to now US$350-400M... similarly the title rights is going to be 3x to 5x more...

    not many in India knew abt DLF before IPL, now not jus India even the world heard abt DLF... thats the value IPL provides to a sponsor... so there will be many more who can pay more & get the return value out of it...

  • POSTED BY Sakthiivel on | August 29, 2012, 18:30 GMT

    We will have a news in few days saying IPL gets new sponsor which double or triple the old deal..

  • POSTED BY Desilathha on | August 29, 2012, 16:32 GMT

    BCCI will get another sponsor with even better offer for sure. People need to understand Tv ratings, though the tournament score has reduced but number of people increased too. Number of people watching the IPL rose in 2012 than in 2010.

  • POSTED BY ashok16 on | August 29, 2012, 16:14 GMT

    I think this is just a sign that the real estate bubble in India is about to burst. IPL contract for the coming years will be a marginally bigger one than the previous one. IPL is here to stay but the rule makers and marketers will need some improvement.

  • POSTED BY wolf777 on | August 29, 2012, 13:05 GMT

    No more 'DLF Maximum'....it wasn't maximum with short boundries anyway...

  • POSTED BY serious-am-i on | August 29, 2012, 12:36 GMT

    @CRLShamalka: What kind of market do u have in SLPL ? You have Indians buying your teams, ur countrymen can't even afford to be sponsors and u expect SLPL to be a touch ahead of IPL, then u r joking. If Mahindra wants to sponsor IPL it will take a toll on them, Mahindra only started in SLPL because they started their market expansion only recently, its a business decision. IPL is not going away my friend. IPL will stay may be a bit less glamorous. Not even 10% of IPL viewers are watching SLPL, so don't dream too much. @Dharshan Tharmakulasingam: Lets not talk about SLPL shall we ? @GerrardLK: Sorry to disappoint you but IPL isn't going anywhere my friend.

  • POSTED BY SurlyCynic on | August 29, 2012, 12:12 GMT

    This is a day to give thanks. No more DLF maximums. Every year I start watching the IPL to see old legends like Gilly, but after a few matches of hearing Danny Morrison screaming 'he's DLFed it into the stands!!!!' I can't watch any more.

  • POSTED BY on | August 29, 2012, 11:37 GMT

    Have some meaningful sponsor please.

  • POSTED BY on | August 29, 2012, 10:57 GMT

    I dunno what this news means to the others, but for me it's a relief, for I won't have to hear another shout of "DLF Maximum!"

  • POSTED BY The-love on | August 29, 2012, 10:52 GMT

    @Ajay Vijayan :-I don't know in which world u r living man....All around world people are watching IPL.....Crowd is gonna increase only....

  • POSTED BY GerrardLK on | August 29, 2012, 9:34 GMT

    The beginning of the END of IPL. Cricket is finally is safe hands.

  • POSTED BY mjrvasu on | August 29, 2012, 8:28 GMT

    DLF realized they have had enough of their 'Maximum'! Although there is no stopping of BCCI's and its officials' greed, let us hope soon some economic sense prevails from the lessons learnt.

  • POSTED BY on | August 29, 2012, 8:10 GMT

    @ CRLShamalka

    Joke of the millenium....For SLPL itself ur expecting an Indian company like Mahindra to sponsor and depending on Indian franchise to buy the teams. Most of the people in the world dont know that SLPL is happening...Wondering whether the people in SL aware about that. First try to find a way to grab the crowd (atleast 50% ) for SLPL then comment about IPL

  • POSTED BY amilag on | August 29, 2012, 7:58 GMT

    IPL , the so called best T20 league (LOL) in a soup!

  • POSTED BY Third_Gear on | August 29, 2012, 6:58 GMT

    Very smart decision by DLF,their assesment is correct. At the current time no body has interest for IPL. Only IPL1 & 2 was a bit success but after that its a boring story running more than a month.

  • POSTED BY jk76 on | August 29, 2012, 4:53 GMT

    OMG! what will they call it now when the ball is hit over the boundary without pitching on the ground?!

  • POSTED BY MelbourneMiracle on | August 29, 2012, 3:56 GMT

    BCCI can now release Indian players to play in the SLPL from season 2. They thought they're the God father of cricket and only they can have a T20 league but now they will have to give approval for their players to play in the SLPL (that is sponsored by their countrymen themselves) to get the international league taste of T20 cricket. IPL will fade away while SLPL will rise above. Guys fasten your seat belts and watch the 2nd semi and the final of SLPL season1 and have a life!

  • POSTED BY on | August 29, 2012, 3:38 GMT

    Yes, Yes BOOOOOOOOOOOOO IPL......

  • POSTED BY yoohoo on | August 29, 2012, 3:28 GMT

    @Ajay Vijayan - What are you talking about. Half the team is from IPL, and even in other countries. Umesh Yadav, Varun Aaron, Virat Kohli, Ajinkya Rahane, Manoj Tiwary, Rahul Sharma, Ashwin, Ojha, Ashok Dinda have all made their name through IPL and are all pretty good. There are others like Rohit Sharma, Jadeja, M Vijay who have not been that good, but have also made their name in IPL. Internationally, Shane Watson, David Warner, Steve Smith have primary earned their reputations from IPL and then gone on to do other things. Kallis is now in the SA T20 Squad purely because of what he did in IPL.

    It has become fashionable to keep critisizing IPL just like that. While the truth is that almost all the problems that people talk about have existed before IPL and will continue to exist.

  • POSTED BY satish619chandar on | August 29, 2012, 3:24 GMT

    Well.. There were negative comments pouring when Sahara opted out of BCCI. But Airtel came in with whopping deal. Same will happen with IPL too. DLF IPL and DLF maximums will be replaced by other brands. Simple as that.. Cricket and IPL didn't die in India as some minor detractors predict..

  • POSTED BY Alexk400 on | August 29, 2012, 2:47 GMT

    Dying product...IPL value was high when lalit modi was incharge

  • POSTED BY AMAZINGFAN on | August 29, 2012, 2:41 GMT

    no problem bcci can find another sponsors,afterall cricket being a religion in india bcci will have no problem in finding better sponsors.

  • POSTED BY the-anti-mule on | August 29, 2012, 1:54 GMT

    this the best news ever because this means commentators can now call sixes by what they really are - sixes and not DLF maximum.

  • POSTED BY on | August 29, 2012, 1:47 GMT

    A very good sign for Cricket as a whole. After 5 years, IPL had produced only a single player who can guarantee his place in Indian Team. Apart from Aswin, hardly there are any new talents who had made and stayed in Indian Team as genuine match winner. The TAM ratings shows how unpopular IPL had become. Most of people around me had stopped viewing IPL after 2011WC. A welcome sign for SL Cricket, English Cricket, WI Cricket, NZ Cricket and especilay for IND Cricket. Let this masala be scrapped for the good of Cricket. !

  • POSTED BY Jim1207 on | August 28, 2012, 23:51 GMT

    Those who know nothing about the business or Indian Premier League value and commenting here that the league would fold in few years are just ignorant to say it in a sweeter way for them. Article clearly states that the real estate firm wanted to establish the brand and thanks to IPL, they have done in 5 quick years. Lot of other firms are waiting to bid for next sponsorship deal, cricket in India is run through sponsorship for around 15 years now, long before than IPL. IPL is just a by-product of the demand present, not a mushroom that came up yesterday. So please understand and don't lose your nose by pointing in where it is not supposed to be.

  • POSTED BY RK204 on | August 28, 2012, 22:39 GMT

    this was just meant to be...as far as i know...bcci started this tournament 2 stop ICL(indian cricket league)......................

  • POSTED BY Natesan333 on | August 28, 2012, 21:28 GMT

    I see the English and the auses are here today (instead of following their own teams, one has been beaten out right, the other struggling), they have at least something to cheer about!!!

  • POSTED BY on | August 28, 2012, 21:13 GMT

    I hope IPL continues to fall in popularity, and eventually dies.

    Quality of cricket is just not the same as Test cricket. All the pitches are made even flatter than usual, and hitting big shots is so much easier.

    Cricket is not fun when only batsmen are doing well and bowlers are not.

    That is why Test cricket is better, the cricket is more competitive and higher quality. The bowling is good as well as the batting.

  • POSTED BY on | August 28, 2012, 20:20 GMT

    Bad move by DLF. They have no idea how much they are going to regret this decision. But it's not a problem for BCCI. IPL probably has like 20 sponsors lined up behind them. And I don't think a high profile event such as IPL will close down.

  • POSTED BY TRAM on | August 28, 2012, 19:53 GMT

    Its not bad watching IPL if shown free on TV or internet. "1..4.W..6..1..W.." - lots of events and few dots. That is better than test cricket "...........1.........1....". :-)

  • POSTED BY LeftBrain on | August 28, 2012, 19:33 GMT

    Well, it means there are sane people in India who understand IPL's value, or lack of it.......... BCCI asked for more money for a 'show' that just not worth it.

    The sooner this IPL thing is dusted, the better it is for world of cricket.

  • POSTED BY on | August 28, 2012, 19:18 GMT

    n there ill be 50 other high profile sponsors lined up for IPL in India .. i donno y tv ratings was down this year but this year IPL was the best according to me for all the 5 SEASONS so far .. stadiums wer jam packed for every match tat was the best part this year .. hope it continues the same ..long live IPL

  • POSTED BY JasonGray on | August 28, 2012, 18:39 GMT

    shame. time to shut shop and move on. bye bye

  • POSTED BY asiacricket1234 on | August 28, 2012, 18:37 GMT

    Thank God. I hope now BBCI let the commentator call a Six and Six not a DLF :)

  • POSTED BY ShawnHolmes on | August 28, 2012, 18:09 GMT

    hahaha. not good news is it.

  • POSTED BY on | August 28, 2012, 18:03 GMT

    KP is not gonna be happy reading this article, haha. The league is going to fold in 2-3 years, wait and see. In leagues like NBA, you can make money from different sources, which you can't do in IPL. Financially it is not viable.

  • POSTED BY AshrafGul_FU on | August 28, 2012, 17:52 GMT

    Poor BCCI. Always hungry for more money. Who will they allow to sponsor now ? Apple ?

  • POSTED BY BellCurve on | August 28, 2012, 17:41 GMT

    A financial services group would benefit most from the IPL sponsorship. $9m is not that much.

  • POSTED BY Smithie on | August 28, 2012, 17:38 GMT

    Modi laughing and Srini worried? Perhaps there may be a cement company the BCCI could approach?

  • No featured comments at the moment.

  • POSTED BY Smithie on | August 28, 2012, 17:38 GMT

    Modi laughing and Srini worried? Perhaps there may be a cement company the BCCI could approach?

  • POSTED BY BellCurve on | August 28, 2012, 17:41 GMT

    A financial services group would benefit most from the IPL sponsorship. $9m is not that much.

  • POSTED BY AshrafGul_FU on | August 28, 2012, 17:52 GMT

    Poor BCCI. Always hungry for more money. Who will they allow to sponsor now ? Apple ?

  • POSTED BY on | August 28, 2012, 18:03 GMT

    KP is not gonna be happy reading this article, haha. The league is going to fold in 2-3 years, wait and see. In leagues like NBA, you can make money from different sources, which you can't do in IPL. Financially it is not viable.

  • POSTED BY ShawnHolmes on | August 28, 2012, 18:09 GMT

    hahaha. not good news is it.

  • POSTED BY asiacricket1234 on | August 28, 2012, 18:37 GMT

    Thank God. I hope now BBCI let the commentator call a Six and Six not a DLF :)

  • POSTED BY JasonGray on | August 28, 2012, 18:39 GMT

    shame. time to shut shop and move on. bye bye

  • POSTED BY on | August 28, 2012, 19:18 GMT

    n there ill be 50 other high profile sponsors lined up for IPL in India .. i donno y tv ratings was down this year but this year IPL was the best according to me for all the 5 SEASONS so far .. stadiums wer jam packed for every match tat was the best part this year .. hope it continues the same ..long live IPL

  • POSTED BY LeftBrain on | August 28, 2012, 19:33 GMT

    Well, it means there are sane people in India who understand IPL's value, or lack of it.......... BCCI asked for more money for a 'show' that just not worth it.

    The sooner this IPL thing is dusted, the better it is for world of cricket.

  • POSTED BY TRAM on | August 28, 2012, 19:53 GMT

    Its not bad watching IPL if shown free on TV or internet. "1..4.W..6..1..W.." - lots of events and few dots. That is better than test cricket "...........1.........1....". :-)