Internationally recognized and one of India’s most prominent business companies, the Tata Group will soon replace Vivo as the sponsor for Indian Premier League (IPL). Their place as the title sponsor is for the next two years.
The Tata Group will be paying about Rs. 670 crores for this two-year title sponsorship. Vivo, on the other hand, will have to pay Rs. 454 crores for the termination of their contract with the BCCI. The latter seems to have benefited from this agreement as they are about to earn Rs. 1124 crores for the season 2022-2023.
The Chairman of IPL, Brijesh Patel, has already confirmed this news, while BCCI secretary Jay Shah was thrilled to have Tata Group as the title sponsor. Tata Group has established a name across the globe, and it is a prestigious occasion for the BCCI IPL to have them as their title sponsor, Jay Shah added.
IPL 2022-2023 – Tata Group – The Entire Deal with BCCI
The Tata Group may also continue to be the title sponsors for IPL Season 2023 as Vivo had received it as a concession year for having lost one season of sponsorship in 2020.
From 2018 to 2022, Vivo had a Rs. 2200 crore deal of title sponsorship with BCCI, but the Chinese electronics company, had to stay low in one season after the Galwan Valley Military Face-Off in 2020 between the Indian and Chinese border soldiers. That year Indian fantasy sports platform, Dream11 was the title sponsor. Although Vivo was back as the title sponsor in 2021, the company wanted to transfer the rights to a suitable bidder. Their act was approved by BCCI.
Sources say that BCCI Board would earn Rs. 547 and Rs. 577 crores in 2022 and 2023, respectively.
Vivo had committed Ra. 484 crores and Rs. 512 crores for the years 2022 and 2023, respectively. The value of the title sponsor went up because the year 2023 would have 10 teams with 74 matches instead of the regular 8 teams and 60 matches.
BCCI will receive Rs. 335 crore each year from the Tata Group, which sums up to Rs. 670 crores. Of this, Rs. 301 crores is towards the Rights Fee while Rs 34 crore is towards incremental fee (additional 14 matches).
IPL 2022 Title Sponsor: The Numbers
As Vivo decided to terminate their contract with BCCI, they would have to pay the difference amount for the two years, which is Rs. 183 crore for 2022 and Rs. 211 crore for 2023.
Along with this, Vivo will also have to bear a 6% assignment fee for the two years, Rs. 29 crore and Rs. 31 crores for 2022 and 2023, respectively.
Thus, Vivo will have to pay Rs. 454 in total to forfeit their position as the title sponsor.
Tata Group may have benefitted by getting the title sponsorship at less for the next two years, BCCI Board seems to have benefitted the most from this deal.
Tata Group is excited to promote the spirit of cricket across the globe, especially as its enthusiasm is clearly visible amongst the rising fans of cricket. BCCI is overwhelmed to have India’s most reliable business group come together to work with them. BCCI, along with Tata Group, looks forward to establishing new heights for cricket, said Jay Shah.
IPL 2022: Why the Change?
The IPL stakeholders were pleased to see Vivo leave as the title sponsor after the 2020 incident as the diplomatic tensions between the two nations had amplified.
A BCCI source revealed that with so much negativity for the Chinese products in the country, it was likely that the company would withdraw from the sponsorship.
BCCI runs on terms that it keeps 50% of the sponsorship money with them, and the remaining 50% is distributed amongst the teams.
Fresh tenders for title sponsorship will be invited in 2024. Another source revealed that the Tata’s wanted to hold their position as title sponsors for the next 5 years. However, they would have to go through the bidding process to get their hands on the sponsorship once again.