VIVO has exited from the IPL Title sponsorship. BCCI has recently confirmed TATA Group as the new title partner. As per sources, the deal with TATA Group is 335 Crores which is approximately 25% less than the VIVO partnership.
Still, BCCI is happy with its new IPL title sponsor. Check out to know the reason.
How BCCI is making profits from the TATA sponsorship?
With the Deal- Transfer from Vivo to Tata, BCCI is benefitted from profits around it.
According to calculations,
- VIVO’s Deal: 440 Crore Per Season
- TATA Motors offer 335 Crore Per Season
- Deficit Per Season: 105 Crores
- Total Deficit for 2 Seasons 210 Crores
As per reports, the deal is transferred in such a manner that all the losses will be covered up by VIVO. BCCI will get the contracted amounts from the VIVO brand and also get PRO-RATA payments as the number of games in IPL 2022 and IPL 2023 will be increasing.
VIVO while signing the contract with IPL had agreed to pay a whopping amount of 484 Core for the 2020 edition and 512 Crores for IPL 2023 since the number of matches will increase in these two seasons. The former title partner was supposed to pay 995 Crore to BCCI over the next two seasons but with the entry of TATA in the scene, VIVO will pay just the deficit amount.
Apart from that, VIVO will be paying an extra amount to BCCI as the transfer fee just like OPPO paid a transfer fee with BYJU’s.
VIVO brand will be paying an amount of almost 450 Crores to BCCI in addition to TATA Group’s payment of 670 Crores. Thus, BCCI earned a profit of 150 Crores.
A BCCI official said, “This is nothing new. OPPO transferred their rights to Byju’s & as per the clause they paid the transfer fee to the board. So nothing new in it”.
The formal clearance about the Title partnership was given after a meeting with IPL’s Governing Council.