The Tata Groups, one of the largest business conglomerates in India will now replace Vivo as the Indian Premier League’s (IPL) title sponsor.
On the 11th of January, Tuesday, the IPL Chairman Mr. Brijesh Patel confirmed the same and said, “Yes, Tata group is coming in as IPL title sponsor.”
According to sources, the Tata Group would pay Rs. 670 crore sponsorship for the next two years, 2022-2023 for the IPL. Besides, Vivo would also pay a whopping amount of Rs. 454 crores, for terminating the contract, before time.
The Board of Control for Cricket in India (BCCI) secretary Jay Shah said, “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.”
It is to be noted, Vivo signed a contract of Rs. 2,200 crore for title sponsorship with the IPL (2018-2022.) However, after the 2020 Galwan Valley military face-off between the Indian and Chinese Army soldiers, the brand took a break for a year in view of a public backlash. Vivo sponsorship then was replaced by Dream11 and later in 2021, Vivo came back as the title sponsor. Vivo was supposed to sponsor the IPL with Rs. 996 crores for the two years’ title sponsorship (2022 and 2023) with Rs 484 crore in 2022 and 512 crore in the next year. Now that Vivo terminated the contract, it needed to pay the remaining amount of the sponsorship as per contract, which is Rs. 183 crores for 2022 and Rs. 211 crores for 2023. In addition, Vivo would also have to pay a 6% assignment fee for both years which is Rs. 29 crore in 2022 and Rs. 31 crore in 2023. In total, Vivo would pay Rs. 454 crores, for terminating the sponsorship deal for IPL.
When asked about the sudden withdrawal of Vivo’s sponsorship, Mr. Jay Shah said, “This was supposed to happen sooner or later as Vivo’s presence was bringing bad publicity for both the league as well as the company. With negative sentiment around Chinese products, the company had to pull out of the sponsorship with one season left for the deal to be completed.”
With this, the BCCI would have a huge amount of Rs. 1,124 crores, of which the Tata Groups would give Rs. 670 crores.
Stay tuned for further updates.
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