Tata group is becoming the title sponsor of IPL this year, as confirmed by Brijesh Patel, IPL chairman. It would replace the Chinese mobile manufacturer Vivo. Tata would remain IPL sponsor this year and the next and will pay BCCI Rs 670 crore for sponsorship rights.
It is deemed to be a face-saver for IPL as they were receiving plenty of backlash because of having a Chinese company as the title sponsor despite the clashes between Indian and Chinese armies in Ladakh’s Galwan Valley in 2020. The Indian Premier League (IPL) will have a new title sponsor for the third consecutive season after Vivo decided to leave the league and was replaced by Tata Group. The IPL Governing Council formally announced the decision, which will earn the board Rs 1124 crore in title rights over the following two seasons.
“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,” said BCCI secretary Jay Shah. “We are truly happy that India’s largest and most trusted business group has 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,” he added. Vivo, on the other hand, for the termination of its deal, would pay the BCCI roughly Rs 454 crore. They had a deal of Rs 2200 crore for the title sponsorship rights from 2018 to 2022, which is now halted after the military face-off between the countries in 2020. In 2018, they agreed to a five-year arrangement in which they would pay Rs 484 crore in 2022 and Rs 512 crore in 2023. The Tata company will pay only Rs 335 crore per season, but it will be the title sponsor.
With two back-to-back IPLs scheduled in six months, Vivo, a Chinese mobile phone maker, dropped out of the IPL title sponsorship in 2020, citing the force majeure clause as the reason. Vivo returned to the fold for the 2021 season, which was split into two legs, while the BCCI found DreamII as a replacement for just Rs 220 crore. Vivo’s current contract with the IPL continues through 2023, and they were meant to pay Rs 484 crore and Rs 512 crore, respectively, with the number of matches growing from this season onwards due to the inclusion of the Lucknow and Ahmedabad teams. Given the current market conditions, it is believed that Vivo informed the BCCI of its desire to terminate the deal. While the BCCI considered issuing new tenders, it decided against it due to market conditions and began looking for replacements. “When the third wave has begun, it is difficult to obtain such a large money. So we sought to work out a compromise that would benefit everyone, “a board of directors member said.
As a result, the Tata Group will pay the board a significant sum (Rs 335 crore per season), with Vivo covering the remainder, including the assignment price. “Because there are more matches this season, the total has changed slightly. As the title sponsor, Tata will cover the majority of the costs, with Vivo covering the remainder, including the assignment fee, “Brijesh Patel, chairman of the IPL GC, stated. Despite the fact that Vivo has opted out, they would pay the BCCI Rs 454 crore over the next two seasons.
“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.
“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 delighted that India’s largest and most trusted business groups have believed in the IPL growth story. Together with the Tata Group, we will look to take Indian cricket and the IPL forward to greater heights,” he added.
Meanwhile, the IPL GC has given two new franchises, Lucknow and Ahmedabad, letters of intent (LOI). The two new teams will have till January 25 to recruit three players before the auction on February 12 and 13 in Bengaluru. While the IPL GC has confirmed the location for the IPL player auctions, it has opted to wait until the end of February to decide on the tournament’s host cities. The sponsorship agreement comes as Tata prepares to launch its “mega app,” TataNeu. All of Tata’s consumer-facing businesses will be merged under the app, comprising online grocery shopping (BigBasket), online pharmacy (1Mg), eCommerce (TataCLiQ), and consumer electronics (Croma), fashion retail (Westside), and more.
Users would, therefore, be able to book hotel rooms in Tata-owned hotel chains such as Taj and Vivanta, along with Air India airline tickets through the app. There will also be a digital and bill payment method. The application is presently being tested among Tata Group employees, and it is anticipated to be released in March of this year, just in time for the IPL 2022 season, which will begin in April. The T20 cricket league is easily the most appealing sports property for advertising and sponsors, with 400 billion total viewing minutes for IPL 2020 and 10 billion for the opening match of IPL 2021. It’s also had a lot of success in terms of generating brand recognition for advertisers.
During the tournament, IPL 2020 title sponsor Dream11 reached 100 million users, with a 44.4 percent exponential rise during the final match compared to 2019. MPL (the sponsor of IPL teams KKR and RCB) started with 40 million subscribers in 2020 and ended with 70 million in 2019. Even businesses unrelated to sports, such as menstrual hygiene firm Niine (Primary Sponsor Of the Rajasthan Royals), saw their monthly sales rise from Rs 14 crore to Rs 20 crore after IPL 2020. As Tata prepares to take on e-commerce conglomerates Amazon and Reliance, a tie-up with a high-profile broadcast property like the IPL will provide the company with the much-needed push to launch its mega app.
The BCCI has formally approved the IPL’s two new teams: Sanjiv Goenka’s RPSG Group for the Lucknow franchise and CVC Capital for the Ahmedabad franchise. After a meeting of the IPL Governing Council, the formal approval was issued, including both Ahmedabad and Lucknow being given a deadline for player signings before the huge auction.
