IPL: Tata to pay Rs 670 crore for two years as title sponsor
The Indian Premier League is set to get a new title sponsor in Tata after mobile company Vivo's decision to pull out.
Published : Jan 11, 2022 14:23 IST
Indian corporate giant Tata will be the title sponsor of the Indian Premier League (IPL) for the next two seasons in 2022 and 2023, the Governing Council (GC) decided on Tuesday.
A Tata spokesperson confirmed the development to Sportstar .
Chinese mobile company Vivo's sponsorship deal with the Board of Control for Cricket in India (BCCI), worth Rs 440 crore per year, stood suspended amid the India-China border standoff in 2020. However, the company was back as the title sponsor last year. It had won the IPL title sponsorship rights for five years from 2018 to 2022 for a reported sum of Rs 2,190 crore. It was to continue as the title sponsor till 2023 but the Board had other plans. "This time, the company wanted to terminate the deal and it was decided to give a nod to an Indian company on board as the title sponsor,” a source in the BCCI said.
According to deal documents, which Sportstar has seen, Tata is estimated to pay Rs 335 crore per year - Rs 301 crore will be title rights fee and an additional Rs 34 crore as an incremental fee for additional matches. With the addition of two teams, the IPL will have 74 matches this season in stead of a 60-match season.
The Chinese mobile brand had committed Rs 996 crore - Rs 484 crore for 2022 and Rs 512 for 2023 - for two years. Now, Vivo will pay the BCCI Rs 450 crore, including six per cent assignment fee for both years as an exit plan. This increases Board's total earning to Rs 1124 crore for the next two seasons, instead of Rs 996 crore.
“This is indeed a momentous occasion for the BCCI IPL as the Tata Group is the epitome of global Indian enterprise with an over 100 year old legacy and operations in more than 100 countries across six continents," BCCI secretary Jay Shah said in a statement.
"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. We are truly happy that India’s largest and most trusted business groups have believed in the IPL growth story and together with the Tata Group, we will look to take Indian cricket and the IPL forward to greater heights.”
Auction on track
The GC also decided to go ahead with the auction in Bengaluru on February 12 and 13 as planned despite the surge in COVID-19 cases across the country. “We will continue to monitor the situation and take a call accordingly if needed,” a Board official aware of the development, said.
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LOI to Ahmedabad, Lucknow
The GC has formally decided to hand over the Letter of Intent (LOI) to CVC Capital Partners, which had acquired the Ahmedabad franchise in the auction in October last year, and RP-Sanjiv Goenka Group - the owners of Lucknow. With the LOI issued to both the new entrants, the GC will soon decide on a new date for the franchises to pick their three respective players ahead of the auction. The Governing Council plans to give the two teams a couple of weeks time to select the players.
Tournament in India
The GC expects to host the tournament in India. With two more months left for April, the COVID situation may improve in the country. There are backup plans such as Mumbai and Pune as possible venues in case it doesn't.