Tata, Vivo. No, they are not joining hands as co-sponsors. Tata is wishing goodbye to Vivo. The Tata Group, is one of India’s largest business conglomerates. They are set to replace Chinese mobile manufacturer Vivo as the Indian Premier League’s title sponsor beginning this year.
“We are thrilled that Tata Sons has agreed to be the IPL’s title sponsor.” The circumstance arose in which Vivo was incapable of proceeding with its association. “Tatas will be the title sponsors for the next two editions,” IPL chairman Brijesh Patel told The Hindu after the IPL governing council meeting on Tuesday. With Vivo opting out of its current contract, which runs until 2023, the reputable Tata group stepped in, extending its association with Indian sports from tennis and badminton to cricket.
Tatas will have to pay more than what Vivo was paying
Vivo had an agreement worth Rs 2200 crore for title sponsorship rights from 2018 to 2022. But following the 2020 Galwan Valley military conflict between Indian and Chinese Army soldiers, the brand took a year off. With Dream11 taking its place. However, Vivo was reinstated as the IPL title sponsor in 2021. Despite the assumption that they were looking to sell the rights to a suitable bidder, the BCCI ratified the move. On the other hand, due to the increase in the number of matches per edition from 60 to 74, Tatas will have to pay more than what Vivo was paying.
The sponsorship economics are such that the BCCI keeps 50% of the wealth and disseminates the remainder to IPL franchises. According to reports, the agreement is merely for a year. And that BCCI will hand out a fresh tender for 2023. The recent COVID-19 surge has once again cast suspicion on the future of the IPL’s 15th edition. Which was halted midway through before relocating overseas last year. Commemorating a conversation on the issue, the GC has instructed to take a ‘wait and watch’ approach.