oppn parties IPL Sponsorship: Tatas Come On Board To Relieve Vivo

News Snippets

  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • T20 WC: USA enter Super Eights as their last match against Ireland gets washed out. They were ahead of Pakistan in the points tally. Pakistan were eliminated
  • BJD leader and former Odisha CM Naveen Patnaik said that the criticism of his aide V K Pandian is "regrettable"
  • As more than 20 BJP ministers lost in the recent elections, the new Union cabinet will have many new faces from the party
  • Congress Working committee asks Rahul Gandhi to take up the position of Leader of Opposition in Lok Sabha. Gandhi says he will consider the request
  • RBI governor Shaktikanta Das said that gold was shifted to India as the quantum of RBI gold abroad had increased due to recent purchases
  • Delhi HC rules that submitting photographic evidence of adultery will not be enough, they will have to be proved as authentic in the age of deepfakes
  • A four-member panel will review NEET-UG results of 1563 candidates to check if they were given extra marks for exam time loss
  • Mamata Banerjee says her party will not join Modi's oath-taking ceremony. Also says INDIA bloc might stake claim to form government later
  • K C Tyagi of the JD(U) dropped a bombshell when he said that Nitish Kumar was offered the post of prime minister for switching sides. Opposition leaders rubbished the claim
  • This May was India's hottest month in 36 years says IMD
  • T20 WC: India take on Pakistan today. Telecast to begin at 8pm IST
  • T20 WC: Afghanistan stun New Zealand and Bangladesh win against Sri Lanka
  • T20 World Cup: Australia beat England by 36 runs. This spoils England's chances of making the playoffs as they have lost both their matches till now
  • Heat wave continues in the country as monsoon moves slow
G7 commits to promote India-Europe corridor
oppn parties
IPL Sponsorship: Tatas Come On Board To Relieve Vivo

By Slogger
First publised on 2022-01-11 14:32:34

About the Author

Sunil Garodia Holding an extreme view and carting the ball out of the park is what interests him most. He is a hard hitter at all times. Fasten your seatbelts and read.

In an excellent development, the BCCI has facilitated a deal between the Tatas and the Chinese mobile handset maker Vivo through which Vivo will exit from the sponsorship of the IPL this year and the Tatas will step in. Vivo had earlier said that it was not getting traction through IPL sponsorship as it was paying a huge amount every year. It was looking to get out of the deal but the terms were such that it would have to bring a replacement on board or otherwise fulfill its financial commitments for the entire duration of the contract. Through this deal, which is win-win situation for all concerned, Vivo has been allowed a smooth exit route.

Vivo's sponsorship of the IPL has been mired in controversy since the beginning. Earlier, there was political bickering when it first came on board. Later the company realized that the investment was way more than the traction it was getting. Now, with the investigating agencies on the back of all Chinese handset makers operating in India, things are turning impossible. The deal with Vivo, signed in 2017 for Rs 2199cr for five years meant a payout of Rs 440cr every year. Vivo wanted out but was constrained by the replacement clause.

Although the terms of the deal signed by the BCCI with the Tatas have not been made public, Jay Shah, the BCCI honorary secretary issued a statement where he welcomed the Tatas as sponsors by saying that "we are truly happy that India's largest and most trusted business groups has believed in the IPL story and together with the Tata Group, we will look to take Indian cricket and the IPL forward to greater heights."

But the problems faced by Vivo should lead to a rethink on long term sponsorship contracts with binding clauses when such huge sums are involved. Although getting a sponsor on board is a time consuming process and also involves costs, the way out could be inviting bids for five years at a time but with separate yearly contracts. The deal could then be awarded to a single sponsor for all the five years or to multiple sponsors for one or more years.