Airtel exits from Champions League T20 title sponsorship contract

Champions League T20 in trouble

The Champions League T20 is looking for a new title sponsor as Bharati Airtel walked out of the CLT20 title sponsorship. India’s biggest telecom company, Airtel, has decided to pull out from the five year contract and will not sponsor the future editions of the event. Low viewership of the tournament is being cited as the reason behind this sudden pull out.

This pull out may cause serious trouble for the CLT20 which is now in desperate search for a new title sponsor. In 2009, Airtel had signed the 3 years deal (extendable by two years) worth Rs 150 crore with the ESPN Star Sports for the title sponsorship of the T20 league. But the company has decided to walk out only after two years of signing the deal. ESPN Star Sports which is the broadcaster of the tournament has confirmed the news. In a statement issued, the executive vice-president for Ad Sales and New Media, ESPN Star Sports said, “We confirm that due to unforeseen circumstances Airtel has exited the title sponsor slot for Champions League Twenty20 this year.”

Airtel backed off from the contract after two years using the exit clause in the contract applicable if viewership ratings were lower than 3. The viewership rating of the CLT20 was 1.45 last year. In the first edition of the tournament, the viewership rating was mere 1.06. Such low popularity of the event facilitated the exit of Airtel.

The official broadcasters ESPN Star Sports(ESS) have paid around $1 billion for the broadcasting rights for 10 years. The huge spending has necessitated the broadcasters to look for a new sponsor. As per reports, ESS may rope in Nokia albeit at a lower price than what Airtel paid two years ago. ESS has already signed Shahrukh Khan as the brand ambassador of the event this year to increase its popularity.

This year, the Champions League will take place in India from 23rd September to 9th October preceded by a qualifying tournament. Club T20 teams from India, Australia, Sri Lanka, South Africa, West Indies, England and New Zealand will take part in the tournament. The matches will be played in Hyderabad, Kolkata, Bengaluru and Chennai.