Sunday, August 7, 2022

Vivo likely to backout of IPL 2020 title sponsorship contract: Reports

On Sunday, the IPL’s Governing Council (GC), said that they would retain the Chinese company Vivo, as title sponsors for the 2020 edition. This lead to a negative reaction on social media, and in the press, owing to recent India-China borer skirmishes and conflicts, which have created a general anti-China sentiment across the nation.

But now, we are hearing reports Vivo plans to themselves exit the IPL, at least for this year. An IPL franchise communicated the ame to 7 others. The negative reaction on social media has no doubt played a role in this as well. “VIVO withdraw itself from sponsorship of IPL. A victory of Confederation of All India Traders.” said Shri Praveen Khandelwal, the national general of the Confederation of All Indian Traders (CAIT)

Vivo had replaced PepsiCo as the sponsor of the IPL a few years ago, and had promised to pay the league 440 crores every year.

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The BCCI, while unhappy with the current situation, hold that they consider the fan’s views to be paraont, and are therefore conducted meetings at the moment to decide on Vivo’s presence in the IPL. Those who are involved behind the scenes, say that the franchise should have consulted with the BCCI before revealing such information.

A formal decision is likely in the next 24 hours and franchises are worried about compensation.

A report quoted sources as saying, “Vivo is going to have to exit the league this year and that looks certain now. How that happens is going to depend on how BCCI and Vivo negotiate the matter. The company (Vivo) has had its own share of issues and the BCCI has optics to deal with, given the political climate. They have to come to some understanding here because legal options can’t be considered in this case”.

If Vivo walks, the BCCI will have a serious problem on their hands, with having to find a new sponsor at such short notice, especially in a Covid-effected market.

“Even if the Board can get a replacement at 50% of the value, it’ll be an achievement. Anything more than that will actually be a shot in the arm. Let’s hope things settle amicably. The IPL has been planned and everything’s set,” industry figures said.

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