Brand IPL caught with 'towel in trousers'

Partially recovering from the earlier controversies, the latest bad news would again mean a hammering, perhaps a lasting one

The spot fixing charges on three players belonging to the Rajasthan Royals team is likely to further dent the brand equity of the Indian Premier League (IPL), only partially having recovered its value this year on the back of some astute management by its owner, the Board of Control for Cricket in India (BCCI).

A recent study by Brand Finance, a UK-based consultancy, had pegged the IPL’s overall value at $3.03 billion (Rs 16,362 crore), four per cent higher than last year’s $2.92 bn (Rs 15,768 crore). Only, the marginal increase came after two years of decline. From 2010 to 2012, the brand value went from $4.13 bn (Rs 22,302 crore) to $3.67 bn (Rs 19,818 crore) to $2.92 bn. Cumulatively, this was an erosion of nearly $1 bn.

Unni Krishnan, global strategy director, Brand Finance, put it directly this way: “It would be foolish to brush ethical infractions under the carpet. There is a problem. And, as the Indian Premier League tries to claw its way back with operational improvements, the trust flows with stakeholders will eventually determine the health of IPL’s long-term cash flows. The latest set of incidents, in my opinion, is another self-inflicted wound on the overall IPL ecosystem, steadily taking away from the property’s sustainability. If not addressed, viewers and other stakeholders will eventually lose all real and serious interest in IPL.” (IPL: Courting controversies)

Rajasthan Royals — whose players S Sreesanth, Ajit Chandila and Ankeet Chavan are being probed — has said it will cooperate fully with the authorities to ensure a thorough investigation. “The management at Rajasthan Royals has a zero-tolerance approach to anything that is against the spirit of the game,” it said. (CRICKET FIXING IN INDIA)

The sponsors of Rajasthan Royals, meanwhile, are treading cautiously. Team sponsor UltraTech is rumoured to have paid Rs  30 crore for renewing its two-year contract with the Manoj Badale and Suresh Chellaram-owned team; it declined to comment when asked. PepsiCo India said, “The matter is under investigation and we are confident that BCCI and the IPL Governing Council will take appropriate action. We believe in the spirit of fair play in sports and remain committed to the property.”

Still, media planners and buyers responsible for parking crores worth of advertising money behind the IPL say the timing of the current controversy couldn’t have come at a worse time. “So far, there was very good buzz around the IPL. Advertisers were happy and everything seemed on track. But now this edition will be remembered for this spot-fixing controversy,” said a Mumbai-based media planner. T Gangadhar, managing director of media agency MEC India, said: “If the allegations are true, it can damage the IPL brand.”

Last year, five players were accused of spot-fixing by Hindi news channel India TV in a ‘sting’ operation. All five — T P Sudhindra (of the now-defunct Deccan Chargers), Mohnish Mishra (Sahara Pune Warriors), Amit Yadav, Shalabh Srivastava (Kings XI Punjab) and Abhinav Bali, a Delhi player, were suspended by the IPL.

SPONSORS OF RAJASTHAN ROYALS

Team sponsor:
UltraTech Cement, Associate sponsors: Supertech, Valvoline, Nissan, Rupa, Kent Mineral Pro, Mahindra Pantero

Other sponsors and partners
TCS, Amity University, Garnier Men, Mountain Dew (Official drink partner), SBBJ, Sanskar School, Gilpin Travel Management, Oakley, BookMyShow, Provogue, Kooh Sports, Jaipur Literature Festival, SDMH