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BCCI likely to suffer Rs 1b loss for VIVO's exit from IPL

August 06, 2020 00:00:00


The Board of Control for Cricket in India (BCCI) was recently dealt with a significant blow after Chinese smartphone manufacturing giant, VIVO, pulled out as the title sponsors of IPL 2020. VIVO has clarified that it will not sponsor IPL 2020 but it will be back as the title sponsor in 2021, reports https://www.sportskeeda.com.

VIVO had signed a massive five-year contract worth Rs 21.99 billion (2199 crores) in 2018 to earn the title sponsorship rights for IPL. However, following the slump in the economy due to the Covid-19 pandemic and backlash relating to the India-China tensions on social media, VIVO decided to keep the deal on hold and not sponsor IPL 2020.

Talking to Moneycontrol, the Chairman of Mogae Media, Sandeep Goyal, stated that the BCCI might be able to get a sponsor for IPL 2020 at the last minute because of the tournament's popularity. However, he felt that the board might not get the same amount- 440 crores- that VIVO was going to pay.

Sandeep Goyal believes that VIVO's exit from IPL 2020 is a massive blow to the BCCI, and even IPL 2020's broadcasters Star India may suffer because of this development. He said, "BCCI won't be able to earn the Rs 4.4 billion (440 crores) it was set to get from Vivo from another sponsor in this environment. This development is also a big blow for Star as Vivo will most probably stay away from advertising and other Chinese brands may follow suit considering the present anti-Chinese prevalent in the country right now."

According to a report by Moneycontrol, the BCCI may get a deal worth Rs 2.5-3 billion (250-300 crores) from the new title sponsors of IPL 2020, which means that the board may suffer a loss of at least Rs one billion (100 crores).


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