Mumbai: The Union Health Ministry has once again instructed the Indian Premier League (IPL) to impose a complete ban on tobacco and alcohol promotions, including surrogate advertising, during the tournament.
Health Ministry’s Directive
In a letter to IPL chairman Arun Singh Dhumal, Atul Goel, Director General of Health Services, emphasized the need for strict enforcement, urging a ban on tobacco and alcohol sales at all IPL-affiliated events and sports facilities.
“India ranks second globally in tobacco-related deaths, with nearly 1.4 million fatalities annually. Alcohol remains the most widely used psychoactive substance in the country,” Goel stated.
The ministry has also requested sports bodies to discourage sportspersons and commentators from endorsing such products, directly or indirectly. Over the years, celebrities like Virat Kohli, Rohit Sharma, Kapil Sharma, and Sunil Gavaskar have been linked to surrogate advertising.
The Role of Tobacco & Alcohol in IPL Advertising
Tobacco and alcohol brands have been major contributors to IPL advertising. According to TAM data, pan masala brands were among the top five advertising categories in the 2023 and 2024 IPL seasons.
- The pan masala sector alone spent approximately ₹350 crore on IPL 2024 ad placements.
- Naresh Gupta, co-founder of Bang in the Middle, estimates that 10-15% of IPL’s ad revenue for broadcasters comes from surrogate advertising.
Despite the regulatory crackdown, surrogate advertising has persisted. In August 2024, the Union Health Ministry urged the BCCI and Sports Authority of India to take stricter measures against such promotions.
Impact on IPL’s Revenue Model
The directive could significantly impact sponsorships and revenue. Concerns have been raised over Royal Challengers Bengaluru (RCB), which is believed to be a surrogate for a liquor brand.
However, industry experts believe the overall IPL revenue will not decline. Instead, IPL may attract new advertisers from fintech, automotive, banking, insurance, and real estate sectors.
“Plenty of brands are eager to invest in cricket, especially after India’s Champions Trophy win,” says Jigar Rambhia, head of Fuse India.
Navigating the Sponsorship Transition
Viren Vesuwala, lead of strategic partnerships at White Rivers Media, believes revenue gaps will emerge in the 2025 IPL season, but the right transition strategy could help.
“A structured transition is key. Clear guidelines, enforcement, and collaboration between regulators, IPL organizers, and media partners will be essential,” he explains.
While some franchises may struggle with pre-existing sponsorship deals, Vesuwala sees this as an opportunity for brands in tech, fintech, gaming, e-commerce, and health sectors.
Teams and broadcasters will likely turn to integrated content marketing, interactive ads, and digital innovations like AR to attract new sponsors.
Stronger Regulations Needed?
Dr. Sandeep Goyal, MD of Rediffusion, questions why the government is only advising against surrogate advertising rather than imposing an outright ban.
“Why involve the IPL chairman instead of imposing a direct prohibition? These advisories won’t have any real impact without strict enforcement,” he argues.
He suggests the only real solution is imposing harsher penalties, including prison sentences, for violations, as small fines fail to act as a deterrent.
Challenges in Execution
Praful Akali, MD of Medulla Communications, believes the ban creates challenges for teams and sponsors at this late stage.
“The letter lacks clarity on team sponsorships and jersey branding. If enforcement is inconsistent, the impact may be minimal,” he states.
Experts emphasize that future enforcement must be structured and planned, avoiding last-minute disruptions to IPL’s revenue model.
Conclusion
The Health Ministry’s directive marks another step in India’s fight against tobacco and alcohol promotions in sports. However, its success hinges on strict enforcement, regulatory clarity, and strategic adaptation by the IPL and its stakeholders.
