BCCI on Thursday confirmed that they have officially pulled out VIVO the smartphone making company from the Title sponsorship for this year IPL. However, it will return back as title sponsor in 2021 and continue till 2023 as VIVO has now only pulled out for 2020 edition of the IPL.
“The Board of Control for Cricket in India (BCCI) and Vivo Mobile India Pvt Ltd have decided to suspend their partnership for the Indian Premier League in 2020,” the release stated.
“They (Vivo) have pulled out of this year’s title sponsorship. We’re are looking for a new partner. Everything will be finalised soon,” an IPL governing council member who asked to remain anonymous said.
The member declined to elaborate on the reasons for the decision, but a second source, also a governing council member, said Vivo had withdrawn partly because of the weak business environment due to the COVID-19 pandemic and because of widespread anti-China sentiment in India following a border clash.
Vivo had bagged the title sponsorship for two years initially in 2015, and retained the rights signing a five-year contract (2017-22), paid the Indian board a huge sum of Rs 440 crore as title sponsor of the lucrative tournament every year. It is as yet unclear what the status of the contract is for the next edition of the IPL and beyond.
Earlier, India Today had reported that Vivo would return as IPL’s title sponsor for the 2022 and 2023 editions.
The decision is not likely to significantly affect the franchises financially. It is understood each franchise gets approximately Rs 20 crore (USD 2.67 million approx) per year from the Vivo contract. As long as the BCCI can rope in a replacement for Vivo, this development should not have any impact on them.
The BCCI was under the scanner after Vivo was retained as the title sponsor after the IPL Governing Council meeting which took place on August 2.
Also Read : Is Postponing IPL A Right Move From BCCI?
The decision to cancel the contract came after BCCI and IPL faced strong backlash across all social media platforms. The sentiments of people forced the Governing Council and the Chinese mobile manufacturing company to cancel the deal.
There is growing pressure on Chinese companies in India now following a border clash in June when 20 Indian soldiers were killed.
India has banned Chinese firm ByteDance’s TikTok and 58 other Chinese apps and made approval processes more stringent for Chinese companies wanting to invest in the country.
Now the BCCI will be looking to find a new sponsor for IPL 13 scheduled to start from September 19 in UAE. But it’s biggest challenge will be to fetch the exact amount as it was getting from Vivo.