22 October 2020 last updated at 16:35 GMT
 
New sponsor for IPL 2020 likely after Vivo-BCCI renegotiation talks fail
Thursday 06 August 2020

The IPL is likely to have a new title sponsor after the BCCI refused to accept Vivo's request to re-negotiate the existing deal. It is understood that Vivo is keen to activate the 'force majeure' clause in the five-year contract it signed in 2018 for Rs 2199 crore.
With just 45 days remaining for the tournament to begin in UAE, BCCI has reached out to a few brands including an Indian telecom major as a potential replacement, but there are concerns that the new deal will be less than Rs 440 crore, the amount Vivo was paying annually.
Express understands that Vivo reached out to BCCI last month with a request to renegotiate the deal citing the pandemic and said it won't be able to pay Rs 440 crore this year. Though there were several round of talks, this issue didn't come up during Sunday’s IPL Governing Council meeting, where it was announced that all sponsorships will continue.
Although an affiliate unit of RSS had asked BCCI to rethink its decision to continue their association with Chinese brands, sources in the board said popular sentiments had nothing to do with the development.
Late on Monday evening, Vivo informed BCCI it would use the 'force majeure' clause.
Although certain sections of BCCI revealed that Vivo wants to honour its five-year contract by coming on board next year and extending the deal till 2023, there is no confirmation.
Given the current financial climate, many in BCCI believe it would be difficult to match the amount Vivo was paying, but there is also optimism that brand IPL can still fetch a big sum.
If Vivo enters into a tripartite agreement with another company provided BCCI gives its consent, then the chances of BCCI suffering losses may reduce. But there is no clarity if this will be explored.
However, given the huge amount involved, market analysts feel it is difficult to create a win-win situation for everyone.
BCCI officials believe both parties deciding to part ways would be the best way forward, as no popular brand would pay a huge sum for just one season. In that case, BCCI can go ahead with a new partner.

The IPL is likely to have a new title sponsor after the BCCI refused to accept Vivo's request to re-negotiate the existing deal. It is understood that Vivo is keen to activate the 'force majeure' clause in the five-year contract it signed in 2018 for Rs 2199 crore.

With just 45 days remaining for the tournament to begin in UAE, BCCI has reached out to a few brands including an Indian telecom major as a potential replacement, but there are concerns that the new deal will be less than Rs 440 crore, the amount Vivo was paying annually.

Express understands that Vivo reached out to BCCI last month with a request to renegotiate the deal citing the pandemic and said it won't be able to pay Rs 440 crore this year. Though there were several round of talks, this issue didn't come up during Sunday’s IPL Governing Council meeting, where it was announced that all sponsorships will continue.

Although an affiliate unit of RSS had asked BCCI to rethink its decision to continue their association with Chinese brands, sources in the board said popular sentiments had nothing to do with the development.

Late on Monday evening, Vivo informed BCCI it would use the 'force majeure' clause.

Although certain sections of BCCI revealed that Vivo wants to honour its five-year contract by coming on board next year and extending the deal till 2023, there is no confirmation.

Given the current financial climate, many in BCCI believe it would be difficult to match the amount Vivo was paying, but there is also optimism that brand IPL can still fetch a big sum.

If Vivo enters into a tripartite agreement with another company provided BCCI gives its consent, then the chances of BCCI suffering losses may reduce. But there is no clarity if this will be explored.

However, given the huge amount involved, market analysts feel it is difficult to create a win-win situation for everyone.

BCCI officials believe both parties deciding to part ways would be the best way forward, as no popular brand would pay a huge sum for just one season. In that case, BCCI can go ahead with a new partner.

(Courtesy: The New Indian Express)

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