Tata will replace Chinese mobile manufacturer Vivo as IPL Title Sponsor for two years.
BCCI is all set for windfall as it will receive a huge sum of money in the deal. According to sources, Tata Group will pay Rs 670 crore over the span of two years. At the same time, Vivo will pay Rs 454 crore for termination of contract which brings only good news for BCCI.
BCCI will earn a whopping sum of Rs 1124 crore for two seasons of IPL (2022 & 2023 season).
Jay Shah, BCCI Secretary has welcomed the Tata Group on board.
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In a media release Jay Shah, son of Union Home Minister Amit Shah 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.”
Transactions For IPL Title Sponsor
In 2018, Vivo signed a deal with BCCI worth Rs 2200 crores for rights of title sponsorship from 2018-2022. But after Galwan Valley military face-off between India and China, the brand has taken a break for a year in view of public backlash. In 2020, Dream 11 was the title sponsor of Indian Premier League.
In 2021, Vivo became title sponsor again but there were other speculations in the air. It was heard that Vivo was looking for suitable bidder to transfer the rights and BCCI approved of it.
Vivo also committed to pay Rs 996 crores; Rs 484 crore for 2022 and Rs 512 crore for 2023 season of IPL.
Tata will pay Rs 335 crore each year making a total of Rs 670 crore. Rs 301 crore is the Rights Fee and additional Rs 34 crore is paid as incremental fee.
This year IPL expanded to 10 teams from 8 teams. Total number of games per season has also been increased to 74, earlier which were 60. The incremental fee paid by Tata Group is for 14 games that have been increased.
The difference amount of Rs 183 crore and Rs 211 crore for year 2022 and 2023 respectively will be paid by Vivo as it promised more amount to BCCI. Vivo will also pay Assignment fee of Rs 29 crore and Rs 31 crore to BCCI for two years.
It’s a great deal for Tata Group as they became IPL title sponsor at a lesser cost for two years.
But the real winner is BCCI as it is receiving money from both groups.