IPL 2025 suspended: What it means for advertisers with locked-in investments

New Delhi: The Indian Premier League (IPL) 2025 has been suspended indefinitely amid escalating tensions between India and Pakistan, leaving advertisers in a state of uncertainty.

Industry insiders say that while broadcasters often invoke force majeure clauses in such situations, the impact on advertisers varies significantly based on the nature of their deals. 

A senior media agency executive, speaking to BestMediaInfo.com, said, "In such a situation, broadcasters typically offer alternative solutions, such as carrying over ad spend to the next season or reallocating it to other properties, mainly sports."

However, this approach may not work for all brands, particularly those whose IPL spending aligns with tactical campaigns for seasonal products like air conditioners, coolers, or beverages. "For these advertisers, even if the tournament resumes in September or October, the timing may not align with their peak sales cycles, making it a less effective investment," the executive added.

Such advertisers can only hope that the tournament resumes as soon as the situation normalises, the executive said.

Phased billing can offer some relief, as it limits financial exposure for spot buyers. "For instance, if a brand agreed to pay Rs 10 lakh per spot per match, they would only be billed for the matches played so far," another media agency head explained.

However, sponsors with larger, multi-crore deals remain more exposed to financial risk if the tournament doesn’t resume.

These brands often commit tens of crores upfront, locking in their budgets early to secure premium slots. "Usually, broadcasters hold you to the deal you sign, which means they may insist you consume the pending value on other properties within their sports portfolio," the executive explained. "Otherwise, it goes into their Internal Broadcast Development Fund (IBDF) as an unconsumed deal."

For the record, JioStar had signed 20 brand sponsors for IPL 2025 across sectors like FMCG, electronics, and e-commerce, including My11Circle, Campa Energy, Birla Opus, PokerBaazi, SBI, PhonePe, Mutual Funds Sahi Hai, Thums Up, Google Search, Allen Solly, Jaquar Bath + Light, GPay, Kent Kuhl Fans, Dream11, Campa, Joy Cosmetics, TVS, Asian Paints, Zupee, and Amul.

Sandeep Goyal, Chairman of Rediffusion, pointed out that broadcasters are likely to invoke force majeure clauses to limit their financial losses. "The broadcaster will surely have a force majeure clause — insurance will cover any losses," he said.

A force majeure clause in a contract relieves parties from their obligations when extraordinary events, beyond their control, make performance impossible or impractical. These events are typically unforeseen and unavoidable, like natural disasters, wars, or government actions.

Goyal also highlighted the broader sentiment behind the suspension, emphasising the importance of national unity. "The cancellation of the IPL is both about security and semantics. While our soldiers are fighting the enemy on the battlefield, playing on their lives, you can't have a stadium full of fans chanting for sixes. The nation's mood is sombre and serious — and it is only right that everyone closes ranks," Goyal said.

JioStar has publicly supported the BCCI’s decision to suspend the tournament. In a statement, the company said, "We, at JioStar, wholeheartedly support the BCCI’s decision to suspend TATA IPL 2025 and stand firmly committed to prioritising national interest over all other considerations. At this time, we must stand united with our country, support the government and our armed forces, and extend solidarity and support to the civilians affected. We will work with the BCCI to bring back the tournament at an appropriate time."