The Tata Group, one of India's largest business groups, will replace Chinese mobile operator Vivo as the main sponsor of the Indian Premier League over the next two years."
According to reliable sources, Tata will pay around 670 million rupees to sponsor the two-year title, while Vivo will pay a total of 454 million rupees to terminate the contract, making it a lucrative position for BCCI as determined. . To earn Rs 1,124 crore for the 2022 and 2023 seasons respectively.
“Yes, Tata Group is being presented as the main sponsor of the IPL,” confirmed development to PTI Brijesh Patel, President of IPL NSE-0.43%.
Bahrain Chamber of Commerce and Industry Secretary Jay Shah welcomed the company into his new position.
“Indeed, this is a momentous occasion for the BCCI IPL, as the Tata Group is the epitome of a global Indian enterprise, with a 100-year heritage and operations in more than 100 countries on six continents,” Shah said. Press release.
It is known that the Tata group may remain the main sponsor of the 2023 IPL season as it was a one-year franchise where Vivo lost the sponsorship season in 2020.
Vivo took 2.2 billion rupees for title sponsorship rights from 2018 to 2022 initially, but after the 2020 Galway Valley military showdown between Indian and Chinese armies soldiers, the band was on hold for a year due to public backlash. Dream11 has been replaced in the IPL.
However, Vivo returned in 2021 as the main sponsor of the IPL, despite speculation that the company was looking to transfer the rights to a suitable bidder and the BCCI agreed to the move.
Reliable sources at BCCI revealed that the board will earn Rs 547 crore in 2022 and Rs 577 crore in 2023.
As per the available information, Vivo has pledged Rs 996 crore for primary care for two years (2022 and 2023) with Rs 484 crore in 2022 and Rs 512 crore next year.
The value of the IPL increased as the year expanded to 74 10-team games, with eight teams instead of 60.
So how does the unexpected breakout of Rs 1,124 crore for BCCI work?
Tata will pay 670 million rupees at a rate of 335 million rupees per year. Of this amount, the rights fee will be Rs 301 crore and an additional Rs 34 crore will be the additional fee (for adding 14 groups).
But since Vivo decided to terminate the contract, it will have to pay the difference in both years: 183 million rupees for 2022 and 211 million rupees for 2023.
In addition, Vivo will also have to pay an allocation fee of 6 percent for both years, which will be Rs 29 million in 2022 and Rs 31 million in 2023.
So in total, Vivo ipl will walk out of the endorsement deal with a payment of Rs 454 crore, which is just over a year of the endorsement money originally provided by the company.
This is a big deal for Tata as they will be getting great endorsement rights for the next two years at a low cost. The biggest winner is BCCI, who can win from the new and outgoing sponsor.
"Like the Tata Group, BCCI wants to promote the spirit of cricket across international borders and the growing popularity of the IPL as a global sporting franchise is a testament to BCCI's efforts," Shah said.
He added, “We are really pleased that India’s largest and most trusted business group has believed in the IPL growth story, and with Tata Group, we are striving to take Indian cricket and IPL to higher heights.”
Most of the IPL stakeholders are happy to see the return of Vivo ipl, as most of them did not feel comfortable with a Chinese company on board after the 2020 incident, which escalated diplomatic tensions between the two countries.
“Sooner or later it would have happened because the presence of Vivo was bringing bad publicity to both the league and the company. With the negative sentiment towards Chinese products, the company had to pull out of sponsorship because the deal required a season,” said a source from the Bahrain Chamber of Commerce and Industry.
The meaning of the ipl sponsors is that BCCI takes 50 percent of the money and distributes the rest among the IPL franchises, which have now risen to 10 with two new teams this year.
It is understood that new performances will be invited for the next round in 2024.|
A source said, "Tata Group wants to be the main sponsor for five years, but a bidding process is required. But the Bahrain Chamber of Commerce and Industry is considering setting up a matching rights option for Tata if they are interested in the next cycle.".
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