 "IPL, Vivo, sponsorship price")
Chinese handset maker Vivo has retained the title sponsorship of the Indian Premier League (IPL). The company will pay the Board of Control for Cricket in India (BCCI) Rs 2,199 crore over the next five years.
The next highest bid was Rs 1,432 crore by Oppo, which holds the Team India sponsorship rights. Both Vivo and Oppo are parts of the same parent group. The base price for bidding was Rs 600 crore for five years, or Rs 120 crore per year.
The deal is at a big mark-up to the previous one Vivo had with the BCCI. The Chinese handset maker came in as title sponsor in 2016 after beverage giant Pepsi pulled out of its five-year deal with the BCCI over a match fixing and betting scam. While Pepsi was to pay the BCCI Rs 396 crore over five years, Vivo picked up the two-year title sponsorship at Rs 200 crore.
Comparing Vivo's previous deal, the new one is a 340 per cent jump in earning from sponsorship rights for the BCCI. Compared to Pepsi's deal, the premium is 455 per cent.
The BCCI had called for title sponsorship bids on May 31. Interested companies could pick up tenders till June 21, and the deadline for submission of bids was June 27. The tender fee was Rs 3 lakh.
Five companies, all handset makers, had applied for the title sponsorship. Apart from Oppo and Vivo, the others were Xiaomi, Motorola and Intex.
IPL Chairman Rajeev Shukla said, “We are delighted to have Vivo joining us once again. The association with Vivo has been great for the past two seasons.” BCCI Acting President CK Khanna said, “Vivo as a brand has carved its niche in the market. We look forward to an enriching affiliation for both stakeholders.” BCCI Acting Secretary Amitabh Choudhary said, “We are glad to have Vivo back on board. It is a renewal of a fruitful relationship.”
The spurt in sponsorship fees, while massive, was not totally unexpected. “The IPL has a history of seeing the title sponsorship rights fetch top dollar. A 500 per cent mark-up may not have been what people expected, but expectations were definitely for a big payout,” said Indranil Das Blah, partner and COO at CAA KWAN, a sports marketing and celebrity management firm.
When the IPL launched in 2008, the title sponsorship was bagged by DLF for Rs 250 crore for five years.
There are those who feel Vivo may have overpaid, considering the nearest bid was Rs 800 crore lower. “Maybe Vivo wanted to make sure that it retained the rights,” said a brand manager.
“This has set a precedent for future sponsorship rights and other rights affiliated with the IPL,” Blah added.
IPL Vivo Sponsorship price
