Tata takes over IPL sponsorship crown from Vivo

A Tata Sons spokesperson confirmed the development.

The salt-to-software group is likely to pay ₹300 crore per year, about 60% of what Vivo would have paid as the title sponsor of IPL for the next two seasons, a person aware of the matter told ET on condition of anonymity, even as the BCCI and Tata group did not disclose financial details of the deal. As per the contract, Vivo will have to pay the remaining amount.

ET reported on February 11 last year that Vivo was ready to let go of the IPL title sponsorship, amid the backlash against Chinese brands, if it found a buyer at the right price.

“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 Jay Shah, honorary secretary, BCCI.

“BCCI, like the Tata group, is keen to promote the spirit of cricket across international borders, and the growing popularity of IPL as a global sporting franchise bears testimony to BCCI’s efforts,” he added.

A Tata group official, who did not wish to be identified, said, “The move is expected to be a good platform to showcase Tata group’s multiple consumer brands, including the proposed launch of its app, Tata Neu.”

Vivo and BCCI had agreed to “pause” the ₹2,190-crore deal signed by Vivo for the 2018-2022 cycle for the 13th edition of IPL in 2020 as both, the handset maker and the board, were caught in a swirl of negative publicity following the India-China military clash in Ladakh’s Galwan Valley in June 2020.

Transfer of Rights Not New

Experts said Vivo has established its name in the Indian market and that after a one-year gap in 2020, when Dream11 picked up the title rights for half the amount the Chinese firm had paid, Vivo’s top bosses also realised the company had overpaid for the rights. As per the contract, Vivo may assign the rights to a third party but it will have to pay a 5% assignment fee. In 2019, Oppo, which was a Team India sponsor (jersey rights holder) for five years since 2017, transferred the rights to Byju’s in a similar way. Similarly, in 2016, PepsiCo had assigned IPL title rights to Vivo for the remaining two years of its original five-year deal.

Meanwhile, sports marketing experts said BCCI had not been transparent about this deal. “While BCCI is fully within its rights to terminate the deal, or assign the rights to some other company, the way it has gone about signing Tata group is not very transparent,” said an executive, who did not wish to be identified. “In 2020, when Vivo and the board paused the deal for one year, the board held an auction. This time also, BCCI could have done so. Or there might have been players ready to pay over and above what Vivo’s payout for the year is.” As Vivo’s deal was back-ended, last year’s payout to the BCCI was close to ₹500 crore.