INDIAN TELECOMMUNICATIONS company Karbonn Mobiles has been announced as the new title sponsor of cricket’s Champions League Twenty20 tournament.
The brand has signed a one-year deal with ESPNSTAR Sports (ESS) – the event’s commercial and broadcast partner – for the fourth edition of the tournament which will be staged in South Africa.
Karbonn Mobiles follows the trend of telecom companies sponsoring the competition, with Bharti Airtel and Nokia its predecessors.
Airtel signed a five-year, $40 million deal to title sponsor the inaugural event in 2009 but withdrew its sponsorship after two years, activating an opt-out clause in the contract relating to low attendance numbers.
Nokia, which reportedly signed a four-year deal in 2011, also reneged on its commitment after a single year.
The Economic Times of India is reporting the Karbonn Mobiles deal to be worth around $4.5 million, almost half the annual fee Airtel agreed to pay in 2009.
The reduced rights fee, if correct, is understandable considering the ongoing concerns over crowd numbers and the previous reservations of past title sponsors.
Despite the diminished sponsorship income, the tournament, which carries a higher prize fund than the Indian Premier League (IPL), is in good commercial shape as a result of its broadcast deal with Asian television network ESS.
ESS – a joint venture between ESPN and News Corporation – paid a reported $1 billion for ten-year media rights to the event in 2008.
For Karbonn Mobiles the deal represents an upgrade in presence at the tournament having previously been a sponsor of the Cape Cobras team during the 2010 competition.
By Luke Harman
Follow Luke on Twitter: @lukeharmanSBG