BCCI decided to retain VIVO as their main sponsor for the upcoming 13th edition of the IPL in the governing council meeting on Sunday. However, this didn’t sit down well with netizens and some groups have warned the board to cut ties with the Chinese mobile phone giant.
VIVO signed a five-year deal with BCCI until 2022 for more than 2,000 Cr INR, but with the recent clashes between Indian soldiers and China’s PLA at the LAC in Galwan Valley, anti-China sentiments are on the rise, with calls for the boycott of Chinese goods and companies. India lost 20 personnel in a skirmish with PLA a couple of months back, leading to strong reactions from everyone.
Now a franchise, which has been fighting tooth and nail to claim compensation from BCCI over having to lose out on gate money in UAE this season, informed the other seven franchises that VIVO is on the verge of exiting, at least for this year, sending them into a state of panic.
The Indian government has banned a specific number of Chinese apps already and there has been a lot of talks recently on cutting all trade ties with the neighbor.
The board is in midst of meetings with the government to convey/receive the final word on VIVO’s presence, they are miffed with that one franchise took it upon itself to let the others know of the development without waiting to hear from the IPL governing council first.
"Was it not the franchise's duty to consult with BCCI first?" ask those in the know.
The immediate focus of the BCCI is to find a suitable replacement for VIVO, who are the title sponsors of the IPL, should the exit be confirmed. A formal decision is likely in the next 24 hours and franchises are already worried about compensation.
"Vivo is going to have to exit the league this year and that looks certain now. How that happens is going to depend on how BCCI and Vivo negotiate the matter. The company (Vivo) has had its own share of issues and the BCCI has optics to deal with, given the political climate. They have to come to some understanding here because legal options can't be considered in this case,” well-placed sources confirmed to TOI on Tuesday morning.
The mobile-manufacturer had earlier replaced soft-drink giants PepsiCo to enter the title sponsorship space after the latter walked out of a Rs 396-crore deal in 2016, allowing the IPL to earn an approximate 450% premium.
The contractual obligation between Vivo India and the IPL is an 'iron-clad' one and unless the former agrees to walk out of this through negotiations, the BCCI will continue to have a proverbial headache to deal with.
It is also understood that VIVO is looking to exit the contract, by way of negotiations, given the negativity towards the brand that has enveloped the market.
Now the board is faced with a possibility of finding a new sponsor, if VIVO exits, in a market ruined by COVID-19 and at such short notice.
"Even if the Board can get a replacement at 50% of the value, it'll be an achievement. Anything more than that will actually be a shot in the arm. Let's hope things settle amicably. The IPL has been planned and everything's set," industry stakeholders opined.
(Times of India inputs)
