VIVO Backs Out as IPL Title Sponsor for IPL 2020

VIVO Backs Out as IPL Title Sponsor for IPL 2020

The road for IPL 2020 doesn’t seem to get any smoother for BCCI as VIVO backed out as title sponsors for the coveted cricket league. This came after VIVO demanded 30-40% cut and BCCI couldn’t oblige. BCCI and VIVO found themselves at the receiving end of a social media backlash. The outrage was due to the tension between India and China’s border situation and strained diplomatic relations. In June the Indian government had banned 59 Chinese mobile apps in retaliation to the Galwan valley attack.

As per reports VIVO will be back as title sponsors next year and continue until 2023. After this BCCI is forced to float new tenders for the tournament with 45 days to go for the tournament in the United Arab Emirates (UAE). This will be a major blow for franchises, governing bodies and other stakeholders as the financial climate is already deteriorated due to Covid-19 pandemic. VIVO retained the sponsorship rights for five years (2018-2022) in 2017 with a bid of Rs.2199 crores. The BCCI is now left with a deficit of over 450 crores which it will have to arrange in the nick of time. 

Revenue sharing arrangements between IPL owners and BCCI were revised in 2018. Teams were to receive 50% of the income from broadcast, sponsorship and other deals struck by the board. Close to 220 crores was to be split between 8 teams amounting to 25 crores. The teams will have to incur losses due to empty stands and added expense of flying to UAE and setting base there. 

Earlier in the day kings XI Punjab owner Ness Wadai remarked how “The IPL would be doomed even if one positive coronavirus case is reported”. He mentioned how IPL should “gradually move away from Chinese sponsors” in light of the face-off between Indian and Chinese soldiers. 

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