By ANUSHREE BHATTACHARYYA
Indiantelevision.com Team

(28 February 2009 9:45 pm)

NEW DELHI: Bollywood actress Preity Zinta and industrialists Ness Wadia, Karan Paul and Mohit Burman, co-owners of the Indian Premier League (IPL) franchisee Kings XI Punjab, are on a sticky wicket as they begin tapping revenues ahead of the T20 format's second edition.

Sponsorship deals have to be renegotiated and new ones stitched as an economic downturn has dragged down advertising rates.

Kings XI Punjab has had to pay for not working out long-run advertising deals, hoping that rates would climb after the proven success of the inaugural IPL edition last year. With the market turning grim, three sponsors - Kotak Mahindra, Provogue and 9X - have not revived their deals with the Mohali-based team while the fate of Foster's is uncertain.

Kings XI Punjab is also in renegotiation with last year's beverage partner Coca-Cola over commercial terms.

Admits Kings XI Punjab co-owner Mohit Burman, “While there are companies that are willing to sponsor, we are seeing a 20 per cent fall in rates. We thought we were better off than those team franchisees who had gone in for three-year sponsorship deals. We felt we would be able to command higher sponsorship rates after the build-up from the first IPL tournament. But today, the whole scenario has changed after the economic downturn."

Kings XI Punjab, however, has retained Spice Telecom as their title sponsor. "We are also in the final stage of negotiations with Coca-Cola as our pouring partner," says Burman.

The franchisee has also closed deals with Reebok as its apparel sponsor and United Spirits. "We will be closing two more deals. This will be with an apparel and a non-apparel merchandiser who will make things like key chains and mugs,” says Burman.

In the current economic situation, Burman feels the break-even position for the franchisees would take longer. "Since the tournament went off on a high note last year, we were under the impression that we will break even this year. However looking at the present situation, I don’t think that franchisees will be able to break even before 2012," he says.

Marketing budgets are also being trimmed. Unlike a few franchisees, Kings XI Punjab has decided to stay away from television. The focus will be on on-ground activities to get closer to their fans, adds Burman.