VIVO is Planning an exit from the IPL by Transferring its Title Rights to Interested Bidders, says Reports!

0
3
VIVO

Mobile Manufacturing beast VIVO which had suspended its IPL title Sponsorship Rights for 2020 edition is planning an exit from the Indian premier League by transferring its Title Rights to Interested Bidders which may include 2020’s edition IPL Title Sponsor Dream 11 and Edu-tech start-up Unacademy.

Dream 11 had been the IPL title sponsors for the 2020 edition who won its title rights for Rs 222 crores which was half of Rs 440 crores what VIVO was paying annually for a five year sponsorship deal. It is understood that in the prevailing situation when Sino-India Geo-Political Relations are in a sensitive state, VIVO understands that it’s not prudent to continue the association with the IPL with two years still left in the expiration of its contract.

“It’s almost final that Vivo will exit the IPL title sponsorship deal by mutual consent with the board. It was suspended for the 2020 edition,” a senior BCCI source told PTI on conditions of anonymity.

“However there is a clause which allows them to transfer their pending liabilities as one-time title sponsors on the new winner. If board agrees on principle, it can happen.”

With IPL set for 9 or 10 teams expansion in the year 2022 it is expected that the new title bidder will get at least a three year Title Sponsorship Rights.

“Dream11 and Unacademy will place their offers to Vivo. Unacademy in any case is an associate sponsor and they are ready to offer a higher amount in order to acquire the rights from Vivo,” an industry insider tracking developments said.

It is learnt that MPL which is Indian team’s kit sponsors may not be allowed to bid for title sponsorship as Dream 11 has been a Title Partner & will get what they call in sponsorship parlance “category exclusivity”.

The BCCI is expected that a clearer picture might emerge by the weekend once VIVO gets a final offer. “Look, Vivo paid approximately Rs 440 crore (Rs 2190 crore for 5 years). Now if BCCI invites bids, just like last year when Dream11 paid Rs 222 crore, it might increase but can’t be doubled. But if there is a transfer of rights, the old amount could be matched or even bettered,” the source said.

The IPL will have a mini-auction on February 18 in Chennai with a maximum of 16 slots available to be taken.

LEAVE A REPLY

Please enter your comment!
Please enter your name here