The BCCI had set up a deadline for submitting Expression Of Interest (EOI) for the IPL 2020 Title sponsorship, which 5 big corporates have shown interest. The BCCI had announced last Thursday that Vivo had withdrawn from the title sponsorship of the IPL 2020. The move from Vivo came after the rise in anti-China sentiment in the country after clashes in the Ladkah’s Galwan Valley. The clashes left 20 Indian military personnel dead.
Vivo had a 2199 crore agreement in place with the IPL for the title sponsorship for five years [2018-22]. BCCI reportedly earned 440 crores directly from Vivo every year, of this 50 per cent was distributed to the franchises.
The Chinese mobile companies’ backout has forced BCCI to find a new title sponsor, which they will announce on the 18th of August.
These 5 Companies Have Met The Expression Of Interest Deadline
According to various sources Tata group, Reliance Jio, Patanjali, and Edu tech platforms Byjus and Unacademy have met Friday’s deadline for submitting Expression Of Interest (EOI). Fantasy gaming platform, Dream 11 are reportedly also interested in being the title sponsors.
A Tata spokesperson has confirmed that the group is interested in the title rights of the IPL
“Tata group have expressed interest in IPL title rights” he said.
“Tata group is a serious player. It may want to make the most of this rare opportunity when IPL is scheduled in a festive season and sponsorship is available just for a year, and at a discount,” said a source close to the development.
The catch is that the industry experts explain that even though some companies have shown interest yet they might not place the final bid.
A BCCI official had confirmed the sponsorship price for this season will be 30 to 40% less than the previous contract. Reliance Jio is already very invested in the teams of the IPL and also a lead advertiser which suggests they won’t go all out for the title sponsorship.
BYJU’s interestingly have dropped out of the principle sponsorship of KKR on Friday. They are already the jersey sponsors of Team India for which they are paying big bucks, and it would be a big decision for their cash books to take IPL title rights too.
BCCI To Do Heavy Vetting Before Giving Away The Sponsorship
The EOI invite by BCCI states that only companies with a minimum turnover of Rs 300 crore, will be eligible to bid for title sponsorship. Also, the board won’t just give away the rights to anyone paying the highest amount of money, they will scrutinize their intentions and value to IPL
“BCCI shall not be obliged to award the rights to the third party which indicates willingness to pay the highest fees in the course of discussions/negotiations with BCCI after submitting an EOI.
BCCI’s decision in this regard will also depend on a number of other relevant factors, including but not limited to, the manner in which the third party intends to exploit the rights and the potential impact of the same on brand IPL,” a source maintained.
Earlier this week, BCCI announced Unacademy and CRED as the official partners of IPL 2020 by the BCCI. Various reports suggested that four years of the agreement has been met from 2020 to 2023 between the BCCI and Unacademy.
The sources say that the deal can be anywhere around 60 crores per season. The other sponsor CRED which is a is a credit card bill payment platform has a similar deal to Unacademy.