A year after returning as the title sponsors of the IPL, following a suspension, Vivo has stepped away from the deal and Tata Group, the Indian business conglomerate, has stepped in.
The BCCI have found a new title partner in the Tatas, and a deal has been signed for the 2022 edition, following which either renegotiations will take place or the BCCI will float a fresh RFP.
IPL chairman Brijesh Patel, disclosed that Governing Council has approved the Letter of Intent to be issued to CVC Capital, whose acquisition of the Ahmedabad franchise has been under a cloud for over a couple months.
About deal
Tata will be paying around Rs 670 crore for two years of title sponsorship while Vivo will pay a total of Rs 454 crore for termination of contract, which makes it a win-win situation for the BCCI as it is set to earn a whopping Rs 1,124 crore for seasons 2022 and 2023 respectively.
Vivo has a couple of years left in its sponsorship deal with the league and during this period, Tata will remain the main sponsor. The league will now be called Tata IPL.
Vivo India had bagged the IPL title sponsorship rights in 2017 for Rs 2199 crore, committing to pay the league approximately Rs 440 crore every season, for a five-year deal.
The mobile-manufacturer had earlier replaced soft-drink giants PepsiCo to enter the title sponsorship space after the latter walked out of a Rs 396-crore deal in 2016, allowing the IPL to earn an approximate 450% premium.
Tata tried this earlier as well
The leading Indian corporate had shown interest in coming on board as title rights holders back in 2020 but eventually did not come to the bidding table.
The last time Vivo had exited the IPL, Dream11 had bought the rights for Rs 220 crore.
The IPL governing council or the BCCI is yet to share the details of the deal signed with the Tatas.
Comment from BCCI
Jay Shah, Secretary : “This is indeed a momentous occasion for the BCCI IPL as the Tata Group is the epitome of global Indian enterprise with an over 100 year old legacy and operations in more than 100 countries across six continents.
The BCCI like the TATA Group is keen to promote the spirit of cricket across international borders and the growing popularity of the IPL as a global sporting franchise, bears testimony to the BCCI’s efforts.
We are truly happy that India’s largest and most trusted business groups has believed in the IPL growth story and together with the Tata Group, we will look to take Indian cricket and the IPL forward to greater heights.”
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