Apollo Tyres new BCCI lead sponsor after record Rs 579 crore deal

When the BCCI floated the tenders earlier this month, there were doubts whether it would be able to receive a sum in the vicinity of what Dream11 was paying. And despite BCCI making it clear that it won’t entertain bids from companies in the gaming, betting, crypto, tobacco, sportswear, non-alcoholic cold beverages sectors, it received plenty of interest which proved that the Indian cricket team remains the most popular brand that top corporate houses want to partner.

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Santosh N, managing partner of D&P Advisory, an independent valuation company that tracks brand IPL among others, said the restrictions put in place by BCCI as to who could bid would have played a big role.

“There is no shortage when it comes to Indian corporations. There are conglomerates like the Tatas and the Birlas. And new stand-offs and plenty of large advertisers would obviously have been eyeing these rights every time. It is not that Apollo wasn’t interested earlier. It’s just that maybe, they did not participate earlier with the knowledge that there are others who were ready to burn more cash. They would have known they wouldn’t be the highest bidder. Now, the list became smaller and the bidders became smaller. Many would have thought they have a decent chance because many competitors were out of the picture,” Santosh tells The Indian Express.

Before Dream11, the other lead sponsors that the BCCI had were Sahara, Star, Oppo and Byju’s. With the exception of Star which had the deal between January 2014 and March 2017, the BCCI had to look for alternatives midway through the deal for various reasons. From geopolitical tensions to firms unable to pay the agreed sum, BCCI had to keep searching for a new sponsor. Having a brand like Apollo Tyres also brings with it stability and face value that the BCCI deems fit.

“If you look from BCCI’s perspective, they went for some flashy, flamboyant names in the past because they got top dollar. But the trade-off was stability. Now, they may not get top dollar, but are getting stability. Earlier, they went for flashy brands because they knew they had the cushion of finding someone reliable. They never alienated the big, reliable corporations, so the BCCI knew they could always go to them. They are not an IPL team which needs top dollar all the time. Looking at the value of the new deal, BCCI hasn’t lost or gained anything. The team’s performance has been tremendous in the last two-three years, so if Dream11 had continued the number would have been far higher in the next cycle,” Santosh explains.

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Nod to stability

Of course, this isn’t a one-off episode. After having MPL as its kit sponsor, the BCCI roped in Adidas – a world renowned brand – which puts its teams alongside some of the big football clubs. For its lead sponsorship deal, apart from Apollo Tyres which placed a bid of Rs 579.06 crore, the second-highest bid came from Australian software company Canva (Rs 554.48 crore; Rs 4.28 cr per game). JK Cement was way behind at Rs 3.7 crore per game which was just marginally higher than the BCCI’s starting bid of Rs 3.5 crore.

“The BCCI would also want to be associated with a decent name. Whose name my players wear on the shirt also matters. So the BCCI may not be just looking at the highest bidder anymore,” he says.

India’s men and women’s teams, playing the Asia Cup and a bilateral home series against Australia respectively, are currently without a lead sponsor. As part of the new deal, Apollo Tyres will pay Rs 4.5 crore for all international fixtures outside ICC tournaments. Since the lead sponsor’s name can’t be sported on the front of the jersey in ICC tournaments (it will find space only on the leading arm of a player), the value drops to Rs 1.72 crore for those fixtures.

In the three-year cycle, the men’s team is scheduled to play a T20 World Cup and a 50-over World Cup. The women’s team has a 50-over World Cup around the corner at home and a T20 World Cup next year. The sponsorship deal also includes BCCI’s A and Under-19 teams.

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“The arrival of Apollo Tyres as our new sponsor is a testament to the hard work and consistent performance of our teams. We are excited about this being Apollo’s first major sponsorship in Indian cricket, which speaks volumes about the sport’s unparalleled reach and influence. This is more than a commercial agreement; it’s a partnership between two institutions that have earned the trust and respect of millions,” BCCI secretary Devajit Saikia said.

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