If mainstream reports are to be believed, then mobile manufacturing company Vivo, which had been the main reigning sponsor of the Indian Premier League since 2016-2019, will likely quit the 2021 IPL title sponsorship. Due to mounting tensions between India and China in the Galwan Valley, Vivo, which is a Chinese brand, has faced a huge backlash with the Indian community preferring to boycott products made in China to support the Indian armed forces.
This led Vivo to withdraw from IPL title sponsorship for the IPL 2020 edition, which was played after being postponed from its original location from March-May 2020, and was conducted in the UAE instead of the India, due to the COVID-19 pandemic. This led to BCCI renewing the sponsorship rights and Dream 11, a fantastic sports platform, won the rights for Rs 222 crore.
Vivo is likely to exit main IPL 2021 sponsorship and transfer rights
Vivo is supposed to make this decision due to the prevailing situation with India-China geopolitical relations which are in a sensitive state, and they understand that it is not safe to continue the association with two more years. It won the title of IPL sponsorship for 5 years from 2017 to 2022 for 440 crores INR.
“It is almost final that Vivo is leaving the IPL title sponsorship agreement by mutual consent with the board of directors. He has been suspended for the 2020 edition. However, there is a clause that allows them to transfer their outstanding responsibilities as sole title sponsors to the new winner. If the board agrees in principle, this can happenA senior source from BCCI said by PTI.
The IPL is also expected to be expanded in 2022 with one or two teams joining the fray and the new bidder is expected to get at least three years of title sponsorship rights. Additionally, reports have stated that the Indian team’s kit sponsors, MPL, may not be allowed to bid for the title sponsorship because Dream11 has been a title partner and will get what they call the jargon of “category exclusivity” sponsorship.
“Dream11 and Unacademy will submit their offers to Vivo. Unacademy is in any case an associated sponsor and they are ready to offer a higher amount in order to acquire the rights of Vivo‘Said a follow-up development industry insider.
“Look, Vivo paid around Rs 440 crore (Rs 2,190 crore for 5 years). Now if BCCI launches offers, just like last year when Dream11 paid Rs 222 crore, it could increase but cannot be doubled. But if there is a transfer of rights, the old amount could be equaled or even improved,”Said the source.
The 2021 IPL auction is scheduled to take place on February 18 in Chennai. IPL 2021 will likely start from April 11 if some media reports are to be believed.