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IPL 2020: IPL and Vivo separate, a new deal in sight | Cricket News

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MUMBAI: a leader Indian Premier League (IPL) franchise, already fighting tooth and nail to claim compensation from BCCI for having to lose money on the doorstep in the UAE this season, summoned the other seven franchises on Monday night to inform them that the league’s title sponsors : I live India – They are about to leave, at least for this year.
Less than 12 hours later, panic seized the IPL fraternity when Vivo’s impending departure as title sponsors became apparent. Vivo India, the local arm of the Chinese mobile device manufacturing giant, has been in the midst of a social media storm in the past 48 hours after the IPL Governing Council on Sunday said it would retain all of its sponsors. for the 2020 edition of the tournament.
Well-placed sources confirmed the development on Tuesday saying: “Vivo will have to leave the league this year and that seems certain now. How that will happen will depend on how BCCI and Vivo negotiate the matter. The company (Vivo) has had its own share of problems and the BCCI has to deal with the optics, given the political climate. They have to reach a certain understanding here because the legal options cannot be considered in this case. ”
The BCCI and the IPL Governing Council have faced criticism for deciding not to cut ties with the Chinese company and a new decision is being made.
On Monday, the franchise had been tasked with informing others of Vivo’s impending departure given the hostility toward Chinese brands that has existed after the border skirmish between the two countries some time ago. The Indian government has already banned a specific number of Chinese apps, and there has been a lot of talk recently about reducing all commercial ties to the neighbor.
The BCCI says it takes the general sentiment of the Indian Cricket Fans are absolutely serious and therefore willing to eliminate a sponsor who brought approximately Rs 440 crore per year to the IPL table as part of the core revenue group. Once the departure is official, which is a development that is expected to take place in the next 24 hours, the responsibility will be with the IPL GC and the BCCI marketing team to start looking for replacements.
Meanwhile, the Board is “upset” that a franchise was tasked with informing others about the development without first waiting for the IPL governing council to hear it.
“Wasn’t it the duty of the franchise to consult with BCCI first?” ask those who know.
While it’s a matter BCCI will be paying close attention to in the coming days, the cricket board’s immediate focus is on finding a suitable replacement for Vivo as franchises lose sleep over loss of revenue and compensation. It is not yet confirmed whether the departure of Vivo as the main sponsor of the IPL is a permanent or temporary agreement.
Vivo India had accumulated IPL title sponsorship rights in 2017 for Rs 2.199 crore, promising to pay the league approximately Rs 440 crore each season, for a five-year contract. The mobile maker had previously replaced the soda giants PepsiCo to enter the title sponsorship space after the latter abandoned a deal of Rs 396 crore in 2015, allowing the IPL to earn a premium of approximately 450%
The contractual obligation between Vivo India and the IPL is ‘lined’ and, therefore, the only possible way to solve this problem is through a conversation at the table. TOI also understands that, at this time, Vivo India would also like to withdraw from the contract, by way of negotiation, given the negativity towards the brand that has engulfed the Indian market.
BCCI’s biggest headache will be finding a suitable replacement, especially in this market ruined by Covid and in such a short time.
“Even if the Board can get a replacement at 50% of value, it will be an achievement. Anything more than that will actually be a shot in the arm. Hopefully things will be resolved amicably. The IPL has been planned and everything is set. “Industry stakeholders opined.
On video: IPL 2020: BCCI panic grips as Vivo will likely come out as main sponsor of the Indian Premier League

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