Sports Marketing can so easily be confused with selling the game on TV. In fact in its early days for the NFL and all that is American it used to be so true. Well, out here in Asia or for soccer, Europe, it is still very much true.
Think of a game, and automatically you think of the TV stars that made the game. The Tendulkars and the Sehwags in Cricket, the Bhaichung Bhutias in Indian soccer have an umbilical cord link with the game, and for us marketing people that cord is the TV Remote. India’s fortunes in Cricket are directly linked with its revenues from TV advertising. Other BRand promotions, events and the game itself were almost pushed to a secondary level everytime its revenues were at a peak.
The situation on the ground is the exact opposite. Players have struggled for real remuneration and spend retirement in various stages of ‘disuse’ and ‘disenchantment’. There are rare coaching opportunities, there are rare royalties and no one but yourself to remember your own records. The broadcasters and the marketers are conspicuous by their absence just 5-10 years ago. It was in this scenario that NEO Sports made a start in India as a game broadcaster, asking ESPN Star Sports and DD to face up to competition. The story of the NEO Sports franchise is thus as old as India’s new found hegemony in Sport.
Apart from its Cricket centric beginnings, it has also promoted the German Bundesliga with a recent 3 year contract. The Hockey World Cup is next. All NEO channels are paid additions to Cable and DTH households within the subcontinent and in the middle east and maybe UK. As recently as April 2009, NEO has received $64 million in funding from 3i and Oman Investment Fund.
Perfetti and Hero Honda are the anchor sponsors for NEO Sports and one can easily assume a less than $25 million billing for them at this stage when the entire cricket universe is $250 million, out of which a good $150 million goes to IPL. NEO Sports has made $95 million across the India Australia series in 2009 and the recent India Sri Lanka series. Even for the current SA visit, sponsorship bands are available for less than $2 million and advertising at $8k per 10s. Idea and Tata Docomo are both part of it since Airtel and Vodafone Zoozoos pretty much monpopolise everything IPL next month ( Our Telecom market is growing at 10 million connections a month and needs constant sustenance for the brand in the face of sometimes more than 5 players in each circle)
NEO also brings the Domestic Cricket league telecast to the 20 million DTH and over 80 million Cable Homes. The recent Lanka series infact crossed TRPs of 8 for the series where the Colors Big Boss and IPL opening matches and finals do not cross 12, A 5 or 6 average for TRP is good and that means 5 million TV Sets were on for the game
NEO is floated by Nimbus sports and in an earlier round of funding it had raised $125 million from Deutsche Bank and Americorp with 3i. It has Indian cricket rights only till the end of this year.
Among competitors Times Global and Network 18 Viacom would be looking for public funding this year. In rights bidding, ESPN Star may be still competing with MAX for future Cricket, Hockey and Soccer rights. Doordarshan as the only Terrestrial partner gets to carry any and all TV telecasts of games free. .For the Commonwealth games, TEN in Australia, SIS (UK) and SKY TV ( NZ ) are among those who have landed broadcast rights. DD/Prasar Bharti are host broadcasters for the game, including the first ever HD broadcast.
NEO campaigns are noted for their bent as pioneers of the game. Its tagline in 2007 was ‘The home of Indian Cricket’, its campaigns used as fillers when air time could not be sold in the early struggles. ‘Dhak Dhak Go’ from Hero Honda supplements the taglines for the FIH Hockey World Cup promotions.
NEO won 11 awards in the 2008 Promax BDA Broadcast Awards for its campaign shorts after the rules of Cricket were changed to bkeep spectators engaged. This years promos to watch are Power play, Rusty Nail and ‘Tension’
Dhoni and Sachin are batting for India as we write, and India are still holding on to the #1 position in Cricket.