BCCI concludes IPL deal with Tatas to give Vivo a smooth exit | Cricket news

MUMBAI: For the second time in 17 months, Chinese cellphone maker Vivo has left the Indian Premier League (IPL) as title sponsor, and this time for good.
Troubled by the political feuds that initially forced the company to pull out of the IPL ahead of the 2020 season, Vivo again decided to pull out due to the lack of traction they were getting from the investment.
BCCI has found a new title partner in the Tatas, and an agreement has been signed for the 2022 edition, following which either renegotiations will take place or BCCI will launch a new tender.
Vivo India had acquired the IPL title sponsorship rights in 2017 for Rs 2,199 crore, pledging to pay the league around Rs 440 crore each season, for a five-year contract. The cellphone maker previously replaced soft drink giant PepsiCo to enter the title sponsorship space after the latter withdrew from a Rs 396 crore deal in 2016, allowing IPL to win a premium of around 450%.
The last time Vivo left the IPL, BCCI said they took the general sentiment of Indian cricket fans with absolute seriousness and therefore were ready to get rid of a sponsor who brought in around Rs 440 crore per an to the IPL table as part of the central revenue pool.
Vivo had been looking for a partner to find a way out for the past six months, but couldn’t find a replacement. Informed sources said: “BCCI was very much in favor of Vivo leaving space as long as it ‘honored’ the engagement by securing a suitable replacement on board.” In fact, it was the BCCI that helped Vivo and Tatas come to an agreement this time around.
“It’s good for the IPL brand to have a name like Tatas on board. Now whether Tatas had no choice but to oblige or that they found a lot here to get in is another matter. What is important is that it works very well – well for the league and we are happy the BCCI managed to sew one on time, “industry sources said.
Just as its Chinese sister and mobile maker Oppo found a way out by selling the rights to Byju in 2019, Vivo has also done the same. While Oppo found the deal unsustainable, Vivo had a distinct set of reasons, arising from the general political skirmishes between India and China.
Born from the Chinese conglomerate BBK Electronics, Vivo and Oppo had staked big in the Indian cricket industry four years ago, when BCCI sold the IPL title and the rights to the Team India jersey to these companies at high prices.
The IPL board or BCCI has yet to share details of the agreement signed with the Tatas. The main Indian company had expressed interest in becoming the owner of the property rights in 2020, but ultimately did not come to the auction table.
In fact, the current deal with the Tatas is the first in the past two years that an online gaming or online education company – those with cash on hand – has not come forward. auction table.
Industry sources are wondering if this is a sign of the times to come. “You would have expected an Unacademy or a Dream11 or a crypto-NFT company to join. Those who follow the developments.
The last time Vivo left IPL, Dream11 bought the rights for Rs 220 crore.

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