Vivo exits as title sponsor for IPL 2020, BCCI confirms
Vivo Mobile India and the BCCI have ended their contractual agreement for IPL 2020 title sponsorship, the BCCI confirmed on Thursday (August 6). Just a few days after the IPL Governing Council decided to retain all its sponsors in its meeting on August 2, reports emerged that Vivo had backed out after facing severe backlash on social media.
It’s official: IPL and VIVO not aligning for this year’s tournament as this terse notification from BCCI confirms pic.twitter.com/bFALQDBiZ3
— Cricketwallah (@cricketwallah) August 6, 2020
Why the backlash?
Not just Vivo but even the BCCI and the IPL Governing Council have been at the receiving end of criticism for not cutting ties with the Indian arm of the Chinese manufacturing giant. Earlier this year, a major clash between the Indian and Chinese soldiers in the Galwan Valley led to severe political tension between the two nations. Following the tragic incident, the Indian government banned as many as 59 Chinese apps from the Indian market. However, the Governing Council’s decision to retain all of its sponsors including Vivo on Sunday added further fuel to the fire.
“All I can say is that all our sponsors are with us. Hopefully you can read between the lines,” an IPL GC official had reportedly told PTI after Sunday’s meeting.
What was the contract?
In 2017, Vivo had retained a five-year deal with the BCCI as title sponsors for the 2018-22 seasons with a winning bid of INR 2199 crore. It meant that the BCCI could receive about INR 440 crores per season as part of the deal. It is now understood that BCCI will float a fresh tender in the next few days for a new sponsorship deal.
The eight IPL franchises, who are already sweating over losing gate revenue, are reportedly keeping a close eye on these developments. As per BCCI’s revised revenue-sharing agreement since 2018, IPL teams would receive 50% of their income from central rights including broadcast, title and various other sponsorship deals that the board would strike. Which means INR 220 crores divided among eight teams will come down to INR 25 crores per team. Add to it, the additional expenses that will be incurred by every franchise for moving base to the UAE. All eyes will now be the on world’s richest cricketing board, who will have to turn things around in a matter of few days.
