TheBCCI on Thursday suspended the IPL title sponsorship deal with Chinese mobilephone company Vivo for the event's upcoming edition amid soaring Sino-Indiadiplomatic tensions.
TheBCCI sent out a one-line statement without giving any details to say that Vivowill not be associated with the IPL this year.
TheBoard of Control for Cricket in India (BCCI) and vivo Mobile India Pvt Ltd havedecided to suspend their partnership for Indian Premier League in 2020,"the press release stated.
Vivowon the IPL title sponsorship rights for five years from 2018 to 2022 for areported sum of Rs 2190 crore, approximately Rs 440 crore per annum.It islearnt that the two parties are now working out a plan in which Vivo might comeback for a fresh three-year period starting 2021 on revised terms.
However,a top BCCI official offered a divergent view."Here we are talking aboutdiplomatic tensions and you expect that after November, when IPL ends andbefore the next IPL starts in April 2021, there would be no anti-Chinasentiment? Are we serious?" the veteran official told PTI on conditions ofanonymity.
Theanti-China sentiment in the country peaked after the violent face-off betweenthe Indian and Chinese troops in eastern Ladakh. India lost 20 soldiers in theclash, while China also acknowledged unspecified casualties.The stand-off atthe Line of Actual Control (LAC) caused outrage across India with several callsfor boycott of Chinese companies and products.
TheBCCI is now likely to float a tender for new IPL title sponsors as mandated byits constitution. The glitzy T20 league starts on September 19 in the UAE,forced out of India due to the rising COVID-19 cases.
Thenew development is in stark contrast to what came out of Sunday's IPL'sGoverning Council meeting, where it was decided that Vivo, along with all othersponsors, will remain on board.
Thiswas after BCCI had announced in June that all sponsorship deals pertaining toIPL will be reviewed in the aftermath of the clash at the Galwan Valley.
However,after Sunday's meeting, there was a huge backlash on social media about BCCIholding on to Vivo. Both parties then began thrashing out an amicableseparation plan, at least for this season.
However,the end of this deal could spell losses for the franchises as they get asubstantial share from the sponsorship pool.
Halfof the annual Vivo sponsorship money is distributed equally among eightfranchises which comes to Rs 27.5 crore.
"Asof now, it will be very difficult for the BCCI to match the sponsorship amountat such short notice. Therefore both BCCI and the franchises should be preparedto lose out on some money -- BCCI more but each franchise from Vivo's exit willpotentially lose 15 crore," the official said.
"Thisyear will be difficult for everyone but the show must go on," the officialsaid.
