The Indian tax department has issued a notice to the Indian cricket team’s sponsor company ‘Dream 11’ for payment of around Rs 17,000 crore.
‘Dream 11’ has challenged this notice in the Bombay High Court demanding such a huge amount.
After the news of receiving the tax notice came out, the share prices of ‘Dream 11’ fell. Remember that the Indian government has imposed a 28 percent tax on online gambling and casinos.
Tax authorities say that the subsidiary companies of ‘Dream 11’ were running gambling services, so these companies will have to pay 28% tax on their gross income.
The ‘Dream 11’ company recently released the new jersey of the Indian cricket company with a new logo.
After the tax notice on ‘Dream 11’, many users took to social media to comment and wrote that this is not the first time that the company sponsoring the Indian cricket team has fallen into trouble.
In the last 15 years, many big companies have gone through bad times after sponsoring the Indian cricket team. Sahara India, the long-time sponsor of the cricket team, is now bankrupt and its owner was jailed for concealing the company’s true figures and defrauding consumers.
Similarly, ‘Star Sports’ channel also sponsored the Indian cricket team for a long time. He won the highest bid in the history of cricket at that time for the broadcasting rights of cricket matches.
However, later Star Sports also declined.
The Chinese mobile company ‘Opo’ also sponsored the Indian cricket team for some time, but after the bad relations between India and China, the boycott of Chinese products started in India, as a result of which this company is also now in trouble. .
In the meantime, another company ‘Byjus’ had entered the field of cricket sponsorship with great force. Initially, the company was growing rapidly and Bollywood actor Shahrukh Khan used to be its brand ambassador. Later I found out that the company had shown the value to be many times higher than its actual value.
This company is also now suffering from a difficult situation and is declining
And now Dream XI, the new sponsor company of the cricket team, has received a tax notice of thousands of crores of rupees, after which its shares are also falling.
“Companies don’t have money, but they take risks.”
Cricket is very popular in India and the cricketers of the national team are heroes to the people.
Big companies in India are ready to pay exorbitant prices to make these cricketers as their brand ambassadors for product promotion.
Sports analyst Jaswinder Sidhu says, “It is noteworthy that the companies we are talking about are paying cricketers more for their advertisements than the market value.”
“The idea is that after associating with any cricketer, that company immediately gets the limelight and it also makes it easier to collect money from the market, but after a stage it is found that the money that is spent on the cricketer and the cricketer. The amount spent was high and contrary to the market value.’
He said that the entire market has changed after the Kovid epidemic. Many companies fail to understand this. This is the reason why companies investing more money in cricket and cricketers sink.
Famous sports journalist Pradeep Magazine says that ‘every brand wants its products to meet the expectations of the common people. They make film stars their brand ambassadors, use cricketers for advertisements.
He says that ‘cricket stars, whether they are Virat Kohli, Dhoni, Tendulkar. These are big names. Companies think that if they advertise our products, our product will sell more, but it has been seen that many companies are not that strong.
They take risks. Cricketers charge huge fees. Top cricketers charge crores of rupees to become brand ambassadors. In the beginning, you have to invest a lot of money and it doesn’t pay off immediately.
“If the company is not financially strong, there is a risk of going under,” he says. Big companies like Samsung, LG and PTM have been successful in this regard. “Half the companies fail because there is no harm in making cricket a brand ambassador, they fail because they don’t have enough money and they take risks.”
Big companies use famous Indian cricketers as well as foreign cricketers to promote their products. These advertisements are very popular with the public and their brand value is also increased due to their association with the cricketers.
Only a few top film stars can match cricketers in advertisements
Indian cricketers are the highest paid cricketers in the world. Indian cricket board is also the richest cricket board in the world.
Cricket is the most popular game in India and investing money in advertising on cricketers and cricket definitely pays off, says Niravhatiya, sports editor of the weekly magazine The Week.
She says that sinking companies has nothing to do with cricket and cricketers. Companies sink for their own internal reasons.
The Women’s Premier League of Cricket is still new. When it started, it had no one to go to for sponsorship. A large number of companies came forward to invest money.
“As popular as cricket is, so is the demand for advertising, and it’s only going to grow,” she says.