India’s biggest sporting extravaganza Indian Premier League (IPL) will have a new sponsor for the upcoming season as Tata Group replaces Vivo.
This decision was taken at the Governing Council meeting of the IPL on Tuesday (January 11).
Following the Governing Council meeting, IPL chairman Brijesh Patel confirmed about the Tata Group coming on board to Cricbuzz. “Vivo has exited and the Tatas will be title sponsors.”
Vivo has a couple of years left in its sponsorship deal with the league and during this period, Tata will remain the main sponsor. The league will now be called Tata IPL.
The original five-year deal was up to 2022 season and it got extended till 2023 because of the one-year break. Following the Governing Council’s decision, the Tata Group will step in and remain the title sponsor for the 2022 and 2023 seasons.
Board of Control for Cricket in India (BCCI) secretary Jay Shah said that this was a momentous occasion for the IPL as the Tata Group is the epitome of global Indian enterprise with an over 100-year legacy and operations in more than 100 countries across six continents.
“The BCCI, like the Tata Group, is keen to promote the spirit of cricket across international borders, and the growing popularity of the IPL as a global sporting franchise bears testimony to the BCCI’s efforts,” Shah said.
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Money Matters
As per reliable sources, the Tatas will be paying around Rs 670 crore for two years of title sponsorship while Vivo will pay a total of Rs 454 crore for termination of contract which makes it a win-win situation for the BCCI as it is set to earn a whopping Rs 1124 crore for seasons 2022 and 2023 respectively.
The Tatas will be paying Rs 670 crores at the rate of Rs 335 crore per year. Of this, Rs 301 crore will be the Rights Fee and an additional Rs 34 crore would be the incremental fee (for increase of 14 games).
But since Vivo decided to terminate the contract, it will have to pay the difference in both years — Rs 183 crore for 2022 and Rs 211 crore for 2023.
In addition to that, Vivo will also have to pay 6 per cent assignment fee for both years which comes to Rs 29 crore in 2022 and Rs 31 crore in 2023.
For the Tatas, it’s a great deal considering that they are getting marquee sponsorship rights at a lesser cost for the next two years.
The biggest winner is the BCCI, which stands to earn from both the new sponsor as well as the outgoing one.
