Hero Honda extends co-sponsorship deal

The Indian Premier League has extended its co-sponsorship deal with Hero Honda, India's largest manufacturer of two-wheelers, from three to five years. The five-year deal is worth US$22.5 million. Hero Honda had earlier lost out on the title sponsorship rights for the IPL to real-estate developer DLF, who won the five-year contract for $50m. Last month, they had negotiated a three-year co-sponsorship deal, reportedly worth $4.5m per year.

"I am very pleased to have the country's largest two wheeler manufacturer Hero Honda extend its co-sponsorship deal from three to five years," Lalit Modi, the IPL's chairman and commissioner, said. "Hero Honda have a long association with cricket both at the domestic and international levels and their decision bears testimony to the fact that the DLF Indian Premier League is here to stay and is set to carve out a distinct niche for itself in the international cricketing calendar."

Incidentally, Hero Honda were represented for both the title sponsorship bid and the negotiations for the co-sponsorship deal by World Sports Group, who in alliance with India's Sony Television network, secured the television rights for ten years at a cost of more than US$1 billion. The bids for the IPL's eight-city based franchises had generated proceeds of $723.59m.

The first edition of the IPL starts on April 18, with 59 matches to be played over 44 days.