Companies are invited to bid the IPL Title Sponsor Rights for a period of only 4 months!

Companies are invited to bid the IPL Title Sponsor Rights for a period of only 4 months!

The IPL’s new title sponsor will have the rights of sponsorship for only four and a half month & for a twist the highest bid may not be necessarily the winning one says the BCCI on Monday.

Vivo who had Rs 440 crores per year deal for five consecutive years has suspended its partnership with BCCI due to the Sino-India border stand-off. BCCI has also released a tender to invite new sponsors for title sponsorship on Monday. Secretary Jay Shah has also announced a 13 point clause for the submission of the bids from interested “third parties” and the winner will be announced on August 18. The last date for submission of bids is August 14.

“The Rights are available for the period from August 18, 2020 to December 31, 2020,” the BCCI press stated in its Press Release.

“Details regarding the Rights and product categories in which the Rights are available will be provided only to parties who submit the EOI and are found eligible,” it stated.

The BCCI further declared that the highest biding amount may not fetch the rights for a company if the board is not satisfied with its plans on commercializing its most precious property.

“…it is clarified that 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,” the BCCI stated.

“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…,” the BCCI release stated.

“(it) will be examined/evaluated by BCCI in the course of discussions/negotiations with interested third parties who submit an EOI,” it added.

It’s now quite clear that the BCCI will get a less value for a four month sponsorship as compared to VIVO which has the sponsorship rights for a longer duration.

BCCI has also stated that the company who wants to acquire the Title sponsorship rights must show a turnover of more than 300 crore Rs as per the last audited accounts.  The audited accounts sheet has to be submitted with the bid.

The BCCI stated as, “…turnover of the interested third party must be over Rs 300 Crore (Indian Rupees Three Hundred Crores only) as per the last audited accounts.”

The statement further added, “It is clarified that marketing agency/agents are not eligible to bid and any bid submitted by a marketing agency/agent shall be rejected at the outset.”

The latest brand which has generated interest in bidding the sponsorship rights is none other than Baba Ramdev’s Patanjali Group.