The Board of Control for Cricket in India (BCCI) has stated that the new IPL title sponsor will hold the rights for only a four-and-a-half-month period and the highest bid may not necessarily end up being the winning one.
Last week, Chinese mobile phone company Vivo paused its association with the BCCI for the 13th edition of the cash-rich league, leaving the slot of IPL title sponsorship vacated. Notably, the India-China border clash in June trigged this decision.
BCCI issued the tender invite for a new sponsor on Monday (August 10).
Secretary Jay Shah announced a 13-point clause for submission of the bids from interested "third parties" and the winner will be announced on 18 August. The last date for submission of bids is 14 August.
"The Rights are available for the period from 18 August, 2020 to 31 December, 2020," the BCCI press release stated.
"Details regarding the Rights and product categories in which the Rights are available will be provided only to parties who submit the EOI and are found eligible," it added.
The BCCI also clarified that bidding the highest amount may not secure the rights for a company if the board is not pleased with its plans on commercialising its most precious property.
"...it is clarified that BCCI shall not be obliged to award the Rights to the third party which indicates willingness to pay the highest fees in the course of discussions/ negotiations with BCCI after submitting an EOI," the BCCI stated.
"BCCI's decision in this regard will also depend on a number of other relevant factors, including but not limited to, the manner in which the third party intends to exploit the Rights and the potential impact of the same on brand IPL...," the BCCI release stated.
"...(it) will be examined/evaluated by BCCI in the course of discussions/negotiations with interested third parties who submit an EOI," it added.
The title sponsorship is an important part of the IPL’s commercial revenue, half of which is shared equally by the franchises. Vivo had signed a five-year deal in 2017 for rights as title sponsors of the IPL from 2018-2022, earning the Indian board a reported sum of Rs 440 crore annually.
It can be safely said that the BCCI will get a lesser valuation for a four-month period compared to Vivo.
According to the BCCI's norms for accepting the Expression of Interest (EOI), "...turnover of the interested third party must be over Rs 300 Crore (Indian Rupees Three Hundred Crores only) as per the last audited accounts."
The audited accounts ought to be submitted with the bid.
The BCCI also made it clear that middle-men or agents cannot enter the bidding process.
"It is clarified that marketing agency/agents are not eligible to bid and any bid submitted by a marketing agency/agent shall be rejected at the outset."