Chinese mobile phone company Vivo, which had paused its association with the BCCI for the 2020 edition of IPL, is looking to exit from the Indian Premier League by transferring its rights to interested bidders, PTI reported on Tuesday (February 9).
See Also: Tentative dates for IPL 2021 revealed, as per reports
According to the report, fantasy gaming platform Dream11 and edu-tech start-up Unacademy might be the two leading bidders for the IPL title sponsorship rights.
Dream11 was the IPL title sponsor last year, winning the rights for ₹222 crore, which was nearly half ( ₹440 crore) of what Vivo was paying annually for a five-year deal.
Considering the current Sino-India geo-political relations, Vivo reckons it's not sensible to continue the association with two years still left.
"It's almost final that Vivo will exit the IPL title sponsorship deal by mutual consent with the board. It was suspended for the 2020 edition. However there is a clause which allows them to transfer their pending liabilities as one-time title sponsors on the new winner. If board agrees on principle, it can happen," a senior BCCI source told PTI on conditions of anonymity.
As per the report, the new bidder will get at least a three-year title sponsorship rights as the IPL set to include two more teams in 2022.
"Dream11 and Unacademy will place their offers to Vivo. Unacademy in any case is an associate sponsor and they are ready to offer a higher amount in order to acquire the rights from Vivo," an industry insider tracking developments said.
It is understood that MPL, Indian team's kit sponsor, may not be allowed to bid for title sponsorship as Dream11 has been a title partner and will get what they call in.
"Look, Vivo paid approximately ₹440 crore ( ₹2190 crore for 5 years). Now if BCCI invites bids, just like last year when Dream11 paid ₹222 crore, it might increase but can't be doubled. But if there is a transfer of rights, the old amount could be matched or even bettered," the source said.
Meanwhile, the IPL 2021 auction is scheduled for February 18 in Chennai.
"Since the title rights transfer will take some time, the Vivo logo is expected to be used during the February 18 auction," the source stated.
(With PTI inputs)
