Bengaluru, August 5: Vivo has decided to pull out of the title sponsorship of the IPL 2020 in the backdrop of the prevailing stand-off between India and China. And that makes it mandatory for the BCCI to search for another lead sponsor for the IPL 2020, which is scheduled to be held in the UAE from September 19 to November 10.
Vivo had acquired the contract for nearly Rs 440 crore per year for a five-year term. Though the BCCI and Vivo have not made any official comment about parting ways, it has been believed that they are working on the severance clause with the Chinese smartphone giant trying to get back on board for the IPL 2023.
The market experts, as reported by the Moneycontrol, now have predicted that the BCCI might not fetch a similar amount from the new title sponsor. They expect the new deal, if it is only for one or two years, could land a deal worth somewhere between Rs 250 or 300 crore. They, though, say it will be a temporary setback as the BCCI will gain in the later years with a better sponsorship deal as the brand value of IPL bears no risk of dipping.
So, who could be the new IPL title sponsors? Some of the market and brand value experts believe that companies like Jio or some other telecom major could eye the opportunity to ink a deal with the IPL. They said the IPL is such an effective brand marketing vehicle that the companies will go extra mile to seal the deal, especially if it comes at a reduced price.
"We have heard that the Vivo is pulling out of the IPL deal. If it is true, then several companies will be eager to get on board of the T20 tournament, which proved to be an excellent product marketing stage over the years and as an independent brand too the IPL carries big value. With just over a month for remaining for the IPL 2020, both the sides (BCCI, new sponsor) will be eager to close the deal at the earliest and that may lead to them making some monetary compromises," a market review expert told MyKhel.
He was also of the opinion that the BCCI and IPL will score by snapping ties with the Vivo in the present political climate even if the move is temporary.
It may be recalled that several trade organisaions had written to Home Minister Amit Shah urging him to persuade BCCI to cut the association with Vivo. Several political leaders too had criticised the BCCI decision to retain Vivo as IPL 2020 title sponsor.