Hero exits cricket, game poorer by approx 1.2k cr a year

14 Feb,2013

By K Shriniwas Rao


Cricket seems to have lost its Hero. The leading two-wheeler manufacturer, led by the Munjal family, has consciously decided to move out of all cricket sponsorships. After exiting as global sponsors of the International Cricket Council (ICC), and also from the Indian Premier League’s (IPL’s) central pool of sponsors, Hero Moto Corp, last week, called it quits with IPL’s Mukesh Ambani-owned franchise Mumbai Indians too.


But the $4.5-billion automobile giant will stay associated with other sports. Earlier this year, Hero had signed a multi-year title sponsorship deal with the recently floated Hockey India League. Recently, Hero also entered into a new four-year sponsorship agreement with the International Hockey Federation (FIH) to sponsor all their events scheduled to be held in India, including the 2013 men’s junior world cup, the 2013 men’s World League Final, 2013 Champions Trophy and the 2015 Hockey World League Final. Hero has been associated with the FIH for three years now.


Hero is also associated with two of golf’s premier events in India – the professional women’s tour and the Indian open – as title sponsors. However, where cricket is concerned, the New Delhi-based company has decided to stay away.


Their exit leaves Indian and world cricket poorer by a collective approximate sponsorship of Rs 1,200 crore. Along with LG, Vodafone and Pepsi, Hero had renewed its contract with the ICC as one of its global sponsors – learnt to be for $25-30 million a year for three years – and were associated with cricket’s world governing body until last year.


Hero was also part of the IPL’s central pool of sponsors until last year. In 2007, it had signed up with the BCCI-run Twenty20 league as associate sponsors for $22.5 million a year for a five-year period that ended in 2012. Hero was also associated with Mumbai Indians (MI) for the last two years as lead sponsors, coughing up approximately Rs 65 crore a year. MI confirmed Hero’s exit but refused to divulge details of a new sponsor. “Many national and international brands are interested but it’s not right for us to divulge details now because we’re still in talks,” an MI spokesperson said. The ICC, it is learnt, is already looking for a replacement for Hero.


When contacted, a statement from Hero Moto Corp said: “We have been associated with cricket for over two decades and it is not correct to say we are moving away from cricket. Our decision to not renew IPL contracts does not dilute our commitment to cricket. We will continue to remain engaged with cricket along with other sports.”


Source:The Economic Times

Copyright © 2013, Bennett, Coleman & Co. Ltd. All Rights Reserved


Post a Comment 

Comments are closed.