Chinese smartphone manufacturer, VIVO has pulled out of IPL 2020 title sponsorship deal due to the increasing India-China tension. VIVO was supposed to pay BCCI Rs 440 crores for each edition of IPL. So it was a massive blow for the Indian cricket board.
Since then BCCI has been on the lookout for a new title sponsor of IPL. BCCI had set a deadline till 14th August for the interested companies to submit their Expression Of Interest (EOI).
BCCI has now confirmed today that Dream 11 will be the official title sponsor of IPL 2020. Dream 11 will pay Rs 222 crore for IPL 2020.
JUST IN: Dream XI wins title rights for #IPL2020 with a bid of INR 222 cr, Brijesh Patel confirms to Cricbuzz— Cricbuzz (@cricbuzz) August 18, 2020
Dream 11 has signed a three-year contract with BCCI for the IPL title sponsorship deal but if VIVO returns for the next edition of IPL then Dream 11’s contract will be terminated.
If VIVO doesn’t return then, Dream 11 would continue to be the title sponsor of IPL until 2023. They will pay BCCI Rs 240 crores for each of next two editions of IPL if VIVO doesn’t return and they continue as the title sponsor of IPL.
Tata Sons was reported to be winning the race for this deal but surprisingly Dream 11 has been the winner with the highest bid followed by Byju’s (Rs 201 crores) and Unacademy (Rs 171 crores). It seems unclear whether Tata participated in the bid at all.
The deal with Dream 11 is half the amount of the deal with VIVO. Owing to current market conditions, BCCI decided to go for as low as 50% of the existing deal of Rs 440 crores per season.
The new deal also comes as a huge blow for all eight IPL franchises. BCCI used to pay 50% of the total amount it receives among all eight franchises. Each franchise received Rs 55 crore in IPL 2019 but that value will come down to as low as Rs 27.75 crore in IPL 2020.
BCCI will also get two other companies, Unacademy and Cred on-board as the official partners of IPL, which will give them another Rs 70-80 crores. So in total, they raised Rs 300 crores from new sponsorship deals compared to the loss of Rs 440 crores due to the VIVO pull-out. In this current financial conditions, these numbers seem pretty good.
BCCI has almost finalized all the sponsor deals so they will now fully focus on hosting the IPL 2020 in UAE from 19th September.
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