BCCI on Thursday confirmed Vivo’s exit from the Indian Premier League’s title sponsorship contract. The announcement comes after Vivo had earlier showed signs of pulling out from the Indian T20 tournament.
“The Board of Control for Cricket in India (BCCI) and vivo Mobile India Pvt Ltd have decided to suspend their partnership for Indian Premier League in 2020.” a press release stated
The 13th edition of IPL, to be held in the UAE from September 19 – November 10, will now be forced to have new title sponsors. Vivo’s exit has opened space for other sponsors to chip in. However, it remains to be seen if the new title sponsors are able to fill BCCI’s resulting financial void completely. Vivo had won the IPL title sponsorship rights for five years from 2018 to 2022 for a reported sum of ₹2,190 crore, i.e. approximately ₹440 crore per annum. The sum saw a record 454% jump from the previous contract, which one believes will be difficult to be replaced.
Indian government banned more than a 100 Chinese applications and companies to work in India. Vivo, another Chinese mobile company, is said to be backing out owing to the same reason. Though the IPL GC last week had already cleared air that Vivo will continue as sponsors at least for this year’s edition of IPL, the mobile company seemingly had different intentions.
Vivo exit: Impact on the Franchises:
We at ICN360 understand that the franchises will be keeping a close eye on BCCI’s sponsorship development from now on. With IPL to be played in a foreing country and likely behind closed doors, the franchises would miss out on the Gate revenue, averaging around 30-40 crore on average.
As per the revised revenue-sharing agreement (2018), the franchises received 50% of BCCI’s central contracts including sponsorships, broadcasting rights and other deals. Vivo’s sponsorship discontinuation will therefore mean a direct 220 crore reduction in the franchises’ revenue.
IPL holds the key to Indian Cricket’s annual revenue. Now without one of its major sponsors, BCCI would look to resolve the issue and offset this loss with a new deal. Rest assured, IPL will have a new first name this season.