In a recently announced decision, One of India's leading business conglomerates, the Tata Group, has become the next title sponsor of the Indian Premier League (IPL). As per reports, this will be a deal for the next two years, and the group will be paying INR 670 crore for the sponsorship. With this, the Tata group will be replacing the previous title sponsor, Vivo, which will pay INR 454 crore for termination of contract.
Officials state that this has been a win-win situation for the BCCI as it is expected to earn INR 1,124 crore for the upcoming seasons 2022 and 2023 respectively. Confirmation regarding the Tata Group as the IPL title sponsor was given by the league chairman, Brijesh Patel.
Sharing more information, BCCI secretary Jay Shah, while welcoming the Tata group said, "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." A statement was released by the BCCI regarding the same.
Reports state that the Tata group could continue to be the title sponsor for IPL's 2023 season as well since the BCCI had given one year concession to Vivo in 2020 as the group had lost a season of the sponsorship due to the backlash faced during the 2020 Galwan Valley military face-off between the soliders from India and China. During this period for one year, Dream11 had replaced Vivo as the sponsor.
Report published in the PTI mentioned that the group would be paying INR 335 crore per year which adds to a total of 670 crores, and out of the per year amount, INR 301 crore will be a part of the Rights Fee and INR 34 crore would be considered as the the incremental fee. Considering this, BCCI is expected to earn INR 547 crore and INR 577 crore in 2022 and 2023 respectively.
On the other hand, Vivo will have to pay INR 183 crore and INR 211 crore for 2022 and 2023 respectively, along with INR 29 crore and INR 31 crore as 6 per cent assignment fee for both years. This calculation has been made as the firm decided to terminate the contract and hence, keeping the clauses in mind, the difference for both the years will have to be paid to the board.
Adding more details, Shah mentioned, "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 truly happy that India's largest and most trusted business groups 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."
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