Star wins Indian team sponsorship rights
Nagraj Gollapudi
December 9, 2013
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Sahara's contract, which has extended over 12 years, expires on December 31, 2013 [COPYRIGHT SIGN] Getty Images
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News : Sahara mulls sponsorship re-bid for Indian team
News : Star India gets series-title rights
News : Star TV bags broadcast rights for Indian cricket
Teams: India
Star India, the television network, has bagged the Indian team sponsorship rights for a four-year period, starting January 1, 2014, and ending March 31, 2017. ESPNcricinfo understands Star's bid was worth Rs 19.2 million (US$315,000 approx) per match for bilateral series and Rs 6.1 million (US$100,000 approx) per match for ICC sponsored tournaments. This brings to an end a 12-year partnership with Sahara, the existing team sponsor, whose contract expires on December 31.
Star is also the title sponsor for BCCI's international and domestic matches till March 31, 2014, and holds the broadcast, internet and mobile rights to Indian cricket until March 2018.
The team sponsorship rights include the right to be called the official team sponsor, and to display a commercial logo on the men's, women's, Under-19 and A teams' kits.
The deadline to submit the bids ended at 3pm on Monday, after which the BCCI's marketing committee evaluated the various offers submitted. Of the seven companies that purchased the invitation to tender documents, only two bids were shortlisted eventually: Star and Sahara India Financial Corporation.
Sahara had initially decided to not renew its contract with the BCCI, the main reason being that it has been locked in bitter legal dispute with the BCCI, primarily concerning the Pune Warriors IPL franchise. Sahara, which owns Warriors, had been asking the BCCI to reduce the annual ownership fee and the matter entered the courts, which asked for it to be resolved through arbitration. Eventually, in October this year, the BCCI terminated the franchise.
But, interestingly, as the deadline for the bid approached, Sahara decided to compete for the sponsorship rights; it bought the tender document on the eve of the deadline for submission. It also put in a higher offer than Star: Sahara bid Rs 20.3 million per match for bilateral games and Rs 9.1 million per match for ICC tournaments. However, its bid was rejected on technical grounds.
"Two bidders - Star India Pvt Ltd and Sahara India Financial Corporation - were in the fray. Sahara's bid was found to be ineligible," a BCCI release stated, without going into details.
Reacting to the development, Sahara expressed disappointment at the treatment handed out to it and even questioned BCCI's motive. "This [legal] dispute has been happening from May. So why did they [the BCCI] continue to take money from us under the existing sponsorship rights, which we hold till December 31. They raised the technical issue just because they wanted to disqualify us," Abhijit Sarkar, a Sahara spokesperson, told ESPNcricinfo.
According to Sarkar, Sahara officials were asked to sit out as the board's lawyer explained to the marketing committee why the company was not eligible and its various legal wrangles with the BCCI. "If they had an objection, they should have told us when we were picking up the tender," Sarkar said. "Even after us having done that, they could have told us your bid would not be considered since there is a legal dispute going on."
Sanjay Gupta, Star India's chief operating officer, said that the thought behind buying the Indian team's logo sponsorship rights was to mainly build the Star brand. According to Gupta, Star's recent experience where it was title sponsor for the home series against West Indies combined with its role as the host broadcaster was positive, and played a huge role in the company deciding to bid for the team sponsorship rights. "We saw the power of how on-air television and sponsorship of a series could add value [to the Star brand]," Gupta said.
According to Gupta, sporting assets have not been used effectively by companies in building brands effectively. Recently, on November 6, Star India rebranded its six sports channels. The date was specifically picked, Gupta pointed out, so that it would coincide with the start of the first Test of the West Indies series. "Though the match ended in three-and-a-half days, the awareness of the Star Sports refresh [new channels] was still 90%," he said. "If you used other methods - TV communication and other media venues - it would have taken a much longer period. So this is a very interesting way to use sporting assets to build brands."
Source http://www.espncricinfo.com/india/content/story/698825.html
Indian cricket finds a new Star
K Shriniwas Rao,TNN | Dec 10, 2013, 01.37 AM IST
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READ MORE Sahara India|Uday Shankar|BCCI|Star India Pvt. Ltd|ICC
Star India Pvt. Ltd can now call itself the 'official team sponsor' and also display a commercial logo on the playing attire of the Senior, Under-19, India 'A' and Women's cricket teams.
RELATED
Sahara cries foul as its bid is thrown outStar pips Sahara, bags India sponsorshipIndia keen to win T20 World Cup: MS DhoniAaron says he hasn't lost pace post surgeryYou cannot run away from competition: Irfan Pathan
MUMBAI: It can only be called a commercial takeover. Star India Pvt. Ltd, which already holds the broadcast and internet rights of Indian cricket till 2017 and is also the title sponsor of all cricket to be played in the country till the end of the season, has now emerged as the official sponsor of the Indian team too.
On a cold Monday, Star won the team sponsorship rights for all BCCI, International Cricket Council (ICC) and Asian Cricket Council (ACC) matches between January 1, 2014 and March 31, 2017.
It can now call itself the 'official team sponsor' and also display a commercial logo on the playing attire of the Senior, Under-19, India 'A' and Women's cricket teams.
The Rs 203 crore deal, incidentally, marks the end of Sahara India Parivar's 12-year-old association with Indian cricket, during which it had been the sponsor of the team.
The decision to award Star the rights was taken at a BCCI marketing committee meeting in Chennai on Monday where the tenders were opened.
Sahara India was the only other interested party but its bid was declared ineligible. TOI learnt that Sahara's dispute with the Board over the termination of its IPL team was cited as the reason.
Sony, World Sports Group, Gaames Unlimited and UB were the only other groups to acquire the tender documents when they were floated last month. In the end, only Star and Sahara came back with their bids which were accepted till 3pm on Monday.
"Star is delighted to become the official sponsor of the Indian cricket team. It's a team of brilliant talent and we are proud to be associated with it," Star CEO Uday Shankar said.
Given the current market scenario, the Board reduced the base price for the rights to Rs 1.5 crore per match. Star, it is learnt, offered Rs 1.92 crore per game and Rs 61 lakh per ICC match. Based on the number of matches scheduled for the next three years, it adds up to Rs 203 crore. Sahara claimed that they offered Rs 2.34 crore per match and Rs 91 lakh per ICC match, adding up to Rs 252 crore for the same period.
Sahara had paid Rs 3.34 crore per international match since July 2010, when it last bagged the sponsorship rights. At that time, BCCI's base price was pegged at Rs 2.5 crore per match, a full Rs 1 crore more than the current valuation.
With this acquisition, Star has ensured that BCCI has put almost all its eggs in one basket. It already has an agreement with the Reliance-IMG JV for a proposed franchise-based football tournament, and with the Indian Badminton League and the newly floated Hockey India League, giving it access to all the popular sports in India.
A market expert said: "Star timed it absolutely right, purchasing the title sponsorship rights just when it was phasing out ESPN-Star and launching its revamped network. They have planned this one right too, given their bouquet of television entertainment channels that attract women and families. Now, they will capture the male eyeballs through sport, with cricket being the cherry."
Source - http://timesofindia.indiatimes.com/sports/cricket/top-stories/Indian-cricket-finds-a-new-Star/articleshow/27146620.cms
Nagraj Gollapudi
December 9, 2013
Comments: 12 | Login via | Text size: A | A
Sahara's contract, which has extended over 12 years, expires on December 31, 2013 [COPYRIGHT SIGN] Getty Images
Enlarge
Related Links
News : Sahara mulls sponsorship re-bid for Indian team
News : Star India gets series-title rights
News : Star TV bags broadcast rights for Indian cricket
Teams: India
Star India, the television network, has bagged the Indian team sponsorship rights for a four-year period, starting January 1, 2014, and ending March 31, 2017. ESPNcricinfo understands Star's bid was worth Rs 19.2 million (US$315,000 approx) per match for bilateral series and Rs 6.1 million (US$100,000 approx) per match for ICC sponsored tournaments. This brings to an end a 12-year partnership with Sahara, the existing team sponsor, whose contract expires on December 31.
Star is also the title sponsor for BCCI's international and domestic matches till March 31, 2014, and holds the broadcast, internet and mobile rights to Indian cricket until March 2018.
The team sponsorship rights include the right to be called the official team sponsor, and to display a commercial logo on the men's, women's, Under-19 and A teams' kits.
The deadline to submit the bids ended at 3pm on Monday, after which the BCCI's marketing committee evaluated the various offers submitted. Of the seven companies that purchased the invitation to tender documents, only two bids were shortlisted eventually: Star and Sahara India Financial Corporation.
Sahara had initially decided to not renew its contract with the BCCI, the main reason being that it has been locked in bitter legal dispute with the BCCI, primarily concerning the Pune Warriors IPL franchise. Sahara, which owns Warriors, had been asking the BCCI to reduce the annual ownership fee and the matter entered the courts, which asked for it to be resolved through arbitration. Eventually, in October this year, the BCCI terminated the franchise.
But, interestingly, as the deadline for the bid approached, Sahara decided to compete for the sponsorship rights; it bought the tender document on the eve of the deadline for submission. It also put in a higher offer than Star: Sahara bid Rs 20.3 million per match for bilateral games and Rs 9.1 million per match for ICC tournaments. However, its bid was rejected on technical grounds.
"Two bidders - Star India Pvt Ltd and Sahara India Financial Corporation - were in the fray. Sahara's bid was found to be ineligible," a BCCI release stated, without going into details.
Reacting to the development, Sahara expressed disappointment at the treatment handed out to it and even questioned BCCI's motive. "This [legal] dispute has been happening from May. So why did they [the BCCI] continue to take money from us under the existing sponsorship rights, which we hold till December 31. They raised the technical issue just because they wanted to disqualify us," Abhijit Sarkar, a Sahara spokesperson, told ESPNcricinfo.
According to Sarkar, Sahara officials were asked to sit out as the board's lawyer explained to the marketing committee why the company was not eligible and its various legal wrangles with the BCCI. "If they had an objection, they should have told us when we were picking up the tender," Sarkar said. "Even after us having done that, they could have told us your bid would not be considered since there is a legal dispute going on."
Sanjay Gupta, Star India's chief operating officer, said that the thought behind buying the Indian team's logo sponsorship rights was to mainly build the Star brand. According to Gupta, Star's recent experience where it was title sponsor for the home series against West Indies combined with its role as the host broadcaster was positive, and played a huge role in the company deciding to bid for the team sponsorship rights. "We saw the power of how on-air television and sponsorship of a series could add value [to the Star brand]," Gupta said.
According to Gupta, sporting assets have not been used effectively by companies in building brands effectively. Recently, on November 6, Star India rebranded its six sports channels. The date was specifically picked, Gupta pointed out, so that it would coincide with the start of the first Test of the West Indies series. "Though the match ended in three-and-a-half days, the awareness of the Star Sports refresh [new channels] was still 90%," he said. "If you used other methods - TV communication and other media venues - it would have taken a much longer period. So this is a very interesting way to use sporting assets to build brands."
Source http://www.espncricinfo.com/india/content/story/698825.html
Indian cricket finds a new Star
K Shriniwas Rao,TNN | Dec 10, 2013, 01.37 AM IST
comments
Share More
AA
READ MORE Sahara India|Uday Shankar|BCCI|Star India Pvt. Ltd|ICC
Star India Pvt. Ltd can now call itself the 'official team sponsor' and also display a commercial logo on the playing attire of the Senior, Under-19, India 'A' and Women's cricket teams.
RELATED
Sahara cries foul as its bid is thrown outStar pips Sahara, bags India sponsorshipIndia keen to win T20 World Cup: MS DhoniAaron says he hasn't lost pace post surgeryYou cannot run away from competition: Irfan Pathan
MUMBAI: It can only be called a commercial takeover. Star India Pvt. Ltd, which already holds the broadcast and internet rights of Indian cricket till 2017 and is also the title sponsor of all cricket to be played in the country till the end of the season, has now emerged as the official sponsor of the Indian team too.
On a cold Monday, Star won the team sponsorship rights for all BCCI, International Cricket Council (ICC) and Asian Cricket Council (ACC) matches between January 1, 2014 and March 31, 2017.
It can now call itself the 'official team sponsor' and also display a commercial logo on the playing attire of the Senior, Under-19, India 'A' and Women's cricket teams.
The Rs 203 crore deal, incidentally, marks the end of Sahara India Parivar's 12-year-old association with Indian cricket, during which it had been the sponsor of the team.
The decision to award Star the rights was taken at a BCCI marketing committee meeting in Chennai on Monday where the tenders were opened.
Sahara India was the only other interested party but its bid was declared ineligible. TOI learnt that Sahara's dispute with the Board over the termination of its IPL team was cited as the reason.
Sony, World Sports Group, Gaames Unlimited and UB were the only other groups to acquire the tender documents when they were floated last month. In the end, only Star and Sahara came back with their bids which were accepted till 3pm on Monday.
"Star is delighted to become the official sponsor of the Indian cricket team. It's a team of brilliant talent and we are proud to be associated with it," Star CEO Uday Shankar said.
Given the current market scenario, the Board reduced the base price for the rights to Rs 1.5 crore per match. Star, it is learnt, offered Rs 1.92 crore per game and Rs 61 lakh per ICC match. Based on the number of matches scheduled for the next three years, it adds up to Rs 203 crore. Sahara claimed that they offered Rs 2.34 crore per match and Rs 91 lakh per ICC match, adding up to Rs 252 crore for the same period.
Sahara had paid Rs 3.34 crore per international match since July 2010, when it last bagged the sponsorship rights. At that time, BCCI's base price was pegged at Rs 2.5 crore per match, a full Rs 1 crore more than the current valuation.
With this acquisition, Star has ensured that BCCI has put almost all its eggs in one basket. It already has an agreement with the Reliance-IMG JV for a proposed franchise-based football tournament, and with the Indian Badminton League and the newly floated Hockey India League, giving it access to all the popular sports in India.
A market expert said: "Star timed it absolutely right, purchasing the title sponsorship rights just when it was phasing out ESPN-Star and launching its revamped network. They have planned this one right too, given their bouquet of television entertainment channels that attract women and families. Now, they will capture the male eyeballs through sport, with cricket being the cherry."
Source - http://timesofindia.indiatimes.com/sports/cricket/top-stories/Indian-cricket-finds-a-new-Star/articleshow/27146620.cms
