IPL 2020: Now, Future Group exits sponsorship deal
The company left as it found the costs too steep and re-negotiation with BCCI did not yield much, say sources
As IPL 2020 inches closer, new surprises are getting unravelled each day. In a new twist for the controversy-hit league, e4m has learned that Future Group, which had been associated with IPL for almost six years and counted among big spenders, has called it quits.
Though a top executive from Future Group told e4m that it was an expected exit as its contract with IPL came to an end, highly placed sources said company was desperately looking to exit this year and might even have been penalised for parting ways.
“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,” said the source.
It must be mentioned that earlier Daikin Air-Conditioning, which had been the principal sponsor for the Delhi franchise since 2015, pulled out of IPL 2020.
However the Delhi franchise quickly announced JSW Group as the new principal sponsor. In a press statement, Parth Jindal, Chairman and Co-Owner of Delhi Capitals, said, “We at the JSW Group see this as a tremendous opportunity to step in as Principal Sponsor for the Delhi Capitals. At the JSW Group, we are rapidly growing and building each of our businesses to be the best in India and the world, whether it is our flagship steel business or our other ventures in energy, infrastructure, cement and most recently paints.The fact that JSW is rapidly increasing its consumer-facing businesses across steel, cement and paints also calls for the JSW brand to be more visible and there are few properties that garner the viewership of the IPL.”
While Delhi Capitals might have managed to put a quick solution in place, it might not be the case for the league as experts believe there could be more brands that might opt for the exit route.
“IPl franchises and sponsors are seeking some rebate from BCCI, given the prevailing circumstances. In fact franchises are staring at an imminent Rs 20 crore loss in sponsorship this year and most brands are re-negotiating deals. However, it seems unlikely that BCCI will entertain any such request, or it might adopt its most preferred wait and watch policy. So sponsors have no choice but to exit, while franchises hope to cover the cost in the subsequent seasons,”stated a top-level source familiar with the development.
IPL 2020 has been studded with surprises. It started with the exit of the league's big sponsor VIVO, owing to its Chinese origin. With its exit, the title sponsorship deal with Dream11 was another big surprise as it won over other big bidders like Byju’s and Unacademy.
The surprises did not stop here. Even the title sponsorship win involved a tussle between BCCI and Dream11, with the former turning down the extension request of title sponsorship beyond a period of year.
And if that was not enough, now a spree of exits by long-term IPL sponsors is adding to that surprise.
