Money in the Willow

Ceylon Tea, Dialog and new strategies to make more money for Sri Lanka Cricket

By Echelon.

Published on April 05, 2013 with No Comments

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big pixSri Lanka Cricket has signed a new team sponsorship contract for a whopping Rs1.3 billion, bringing in Dialog Axiata and the Sri Lanka Tea Board as joint sponsors. The new deal is almost three times the previous sponsorship by state-owned mobile operator Mobitel at Rs550 million.
The increased sponsorship will ease the tension at the debt-ridden cricketing governing body, which clocked up US$70 million in debt after footing the bill for a new international cricket stadium in Hambantota during the 2011 ICC World Cup.
Sri Lanka Cricket recently also ran around with securing national player contracts, after proposing a revised payment scheme that emphasized performance over popularity in remunerating the players. The board cited budgetary constraints in justifying the new deal.
Another $30 to $50 million is also expected over the next seven years from broadcast rights. The cricket board’s own bid evaluation committee recommended the bid from current rights holders – Ten Sports (Taj TV) for $34.8 million – over bids from Nimbus and Neo, possibly due to a number of tender anomalies and negative past experiences, including a decade-old court battle that saw Sri Lanka Cricket pay out nearly Rs600 million in damages.
Meanwhile, Sri Lanka Cricket is also expected to maximize the revenue potential of cricket stadiums under its purview as a means to strengthen its sources of finances. With rights for branding on the grounds during international matches with the broadcast partner, the board is likely to open out the stadiums to teams from schools overseas and other non-test playing nations.

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