TATA IPL 2022: Delhi Capitals expects lower revenue as 2021 was a watershed year

Delhi Capitals, the team which made it to the second qualifying round in the 14th season of the Indian Premier League (IPL), saw a 40-45 percent year-on-year (YoY) growth in revenue in CY21. This was its highest sponsorship revenue figure. However, interim CEO Vinod Bisht said revenues 2022 would be lower than in 2021.

“When COVID-19 broke out in 2020, certain revenue streams were out of the window. The year was a shocker in terms of revenue, (fan) engagement. Lot of franchises took corrective actions. In 2021, a lot of us thought about strategies on how to engage with IPL fans, even if they are not physically present at the venue. So, 2021 was a watershed year and we saw the biggest jump in revenue. This year, it will be tapered," Bisht told Moneycontrol.

In 2021, the franchise had touched pre-COVID-19 (2019) level in terms of sponsorship revenue and had added 25 sponsors, nine more than in 2020.

Overall, in 2021, franchises saw a 20 percent increase in revenues after the teams took a 13-15 percent hit in 2020 due to COVID-19.

‘Digital focus to be the key this season’

Bisht pointed out that while IPL is back in India, this year, it will not be a full-fledged season.

"Fans coming in have been a little late and there is capacity restriction. So, you really cannot consider it a full-fledged season. Bigger planned activity will not be able to take place because it will be in one location," he said.

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He, however, said that the focus on the digital space will remain the key this year and he is confident that the team will improve upon its performance by a big margin. Bisht noted that the success the team witnessed last year was due to its focus on digital content and communication.

“Last year, we had time to fine-tune our social media strategy. Even sponsors realised this and got on to the bandwagon. Now, it has become a part and parcel of the franchise. OOH (out-of-home) communication channels, like billboards, have gone down notches or two in terms of importance and spends and digital engagement platforms have become important. I see newer sponsors, who are ready to engage with the audience digitally, coming in," said Bisht.

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In 2021, Delhi Capitals joined hands with providers of digital inventory management, Horizm, to boost its digital media returns and monetise social media audience, which totalled over 11 million across Twitter, Instagram, Facebook (now Meta), and YouTube. It has currently increased to over 13 million.

"Last time, it was the first year for digital deals, and some of them happened at short notice. This year, it is much better planned and brands are building into digital communication and content at the concept level. There is less reliance on mainstream media to build content. Brands want to be on social media and all digital side of communication," he added.

The Delhi Capitals head also said that, this year, the addition of two new franchises has made IPL a global business.

There is less reliance on mainstream media to build content.

- Bisht

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At the auction that took place in February this year, Bisht said: “We lost a lot of our big players in the auction. We expected it. Our team had performed well in the last seasons. We knew that many of the big performers will go for big money and we will not be able to retain many of them. We focused on players who have a big potential but may not be big names. We are putting our effort in making players achieve their potential. The team is finding its feat. It is work-in-progress at this moment."

Delhi Capitals, which had a price purse of Rs 47.5 crore for the auction, had retained four players, including Rishabh Pant for Rs 16 crore, Axar Patel for Rs 9 crore, Prithvi Shaw for Rs 7.5 crore and Anrich Nortje for Rs 6.5 crore. The franchise bought Australian cricketer David Warner for Rs 6.25 crore at the auction. Warner was with Sunrisers Hyderabad in the last IPL season.