Chinese mobile phone company Vivo is expected to draw out as the Indian Premier League’s title sponsorship for this year. It is in discussions with the BCCI for a “friendly separation” between rising China-India diplomatic stresses.
The one-year draw could be interpreted as an interim period, and if the relations improve, BCCI may view at inking a new three-year deal with the company from 2021 to 2023 on updated terms. The IPL will be held in the United Arab Emirates from September 19 to November 10 this year.
Discussions are going on between IPL Governing Council and Vivo.
“Yes, the discussions are on between BCCI office-bearers who are Sourav Ganguly, president, and Jay Shah secretary with the representatives of the company. There is a chance that Vivo will not be title sponsors for one year,” a senior BCCI official said.
Chinese sponsorship is questionable after the eastern Ladakh conflict between the two armies.
Chinese sponsoring became a bone of dispute after the BCCI announced it would evaluate the deals following the violent conflicts between the armies of both the countries in eastern Ladakh.
The conflict that led to the killing of 20 Indian soldiers and triggered public outrage and led to calls of boycotting Chinese products and companies.
The bank guarantee between the sponsors and IPL Governing council
While the IPL Governing Council maintained all the sponsors that include Vivo that annually pays Rs 440 crore (approximately) as part of a five-year deal continuing till 2022, and there is a strong chance that the company might part ways for a year.
The Board official talked on whatever a decision is taken, it will be friendly, and BCCI is not looking at encashing the bank guarantee.
“In different situations, if the sponsors don’t keep the commitment, then BCCI can encash the bank guarantee that it had earlier done in case of shifting franchises. But here, both parties are looking at a peaceable exit route,” the official said.
A question mark prevails when you do not fulfill your commitment
There were questions proposed on the BCCI’s decision to hold Chinese sponsors, yet the union government banned close to 60 Chinese apps and social media platforms. Also, when you are aware of the present conflicts happening between both the countries.
“These are unstable times and need a careful strategy. Once you stated that you would evaluate sponsorship and then did nothing about it, it would put a question mark over your intention to deal with the Chinese companies,” the official said.
BCCI plans to take Indian companies in confidence for sponsorship
The BCCI is already in discussions with a couple of Indian companies who are considered to be interested in a short-term sponsorship deal of approximately one year period.
“It will be difficult to make up the full amount (Rs 440 crore) in such a short time with the tournament being held abroad. Also, there won’t be much stress in an empty stadium. But we will proceed to that once VIVO officially discontinues,” he said.