Football leagues threat to IPL

Viewership reports for IPL5 have pointed towards decline in TV ratings, a troubling trend which will impact the league when sponsorships are renegotiated. Desh Gaurav Chopra Sekhri in Business Standard comments on the stagnation of franchise loyalty while European football leagues expand their audience in India.

This year’s revenue and profitability plateau could severely impact the value of the sponsorships going into the central revenue pool, which are being renegotiated as the IPL enters its much-anticipated season 6. Given that the big-ticket contract renewals for title sponsorship and official sponsors start after IPL 5, it’s imperative that the league continue to flourish and attract increased viewership. It needs to, in addition, start converting unique viewers into die-hard fans. By season 5, one would have expected the league to have exponentially increased its collateral revenues, especially gate receipts and merchandise. It appears, however, that the IPL is still clubbed with, or compared to, other entertainment properties. If that fear becomes a reality, then the league faces an uphill battle to remain relevant as an asset in the emerging and growing domain of professional sports.