Mobile manufacturing company Vivo, who had suspended their IPL title sponsorship rights for the 2020 edition, is likely to exit from the Indian Premier League by transferring its rights to interested bidders, which may include fantasy gaming platform Dream11 and edu-tech start-up Unacademy.
After Vivo pulled out last year, Dream11 became the IPL title sponsors for 2020, winning the rights for Rs 222 crore, which was nearly half (Rs 440 crore) of what Vivo was paying annually for a five-year deal.
Vivo is understood to be taking this decision due to the prevailing situation with the India-China geo-political relations which are in a sensitive state, and they understand that it's not prudent 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," a senior BCCI source was quoted as saying by PTI.
"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."
The IPL is set to be expanded in 2022 with one or two teams set to join the fray and it is expected that the new bidder will get at least a three-year title sponsorship rights.
"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.
PTI also reported that MPL, which is Indian team's kit sponsors may not be allowed to bid for title sponsorship as Dream11 has been a title partner and will get what they call in sponsorship parlance "category exclusivity".
BCCI brass are expecting that a clearer picture might emerge by the weekend once Vivo gets a concrete final offer.
"Look, Vivo paid approximately Rs 440 crore (Rs 2190 crore for 5 years). Now if BCCI invites bids, just like last year when Dream11 paid Rs 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.
The IPL will have a mini-auction on February 18 in Chennai with a maximum of 61 slots up for the grabs.
(With various inputs)
(At The Quint, we question everything. Play an active role in shaping our journalism by becoming a member today.)