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One of the biggest premier leagues of the world, IPL has changed its sponsor from Vivo, a Chinese mobile phone manufacturer to Tata for 2022 and 2023 seasons.

In the background

The Indian Premier League is one of the world’s leading cricket teams, best known for the ‘VIVO IPL’ giving the hottest news of the month on the 11th of January. While IPL chairman Brijesh Patel was following a meeting of the executive council announcing that VIVO, a Chinese telecommunications company, had left the IPL sponsors title, and Tata Group was given a green flag as new sponsors. In 2018, VIVO claimed IPL title rights for a whopping Rs. 440 crores per season. Although the first five-year contract with VIVO came in the 2022 season and was extended to 2023 due to one-year leave, Tata Group will enter and remain sponsors of the title for the 2022 and 2023 seasons after the governing body meeting. The reason for this is not yet clear after VIVO agreed to sponsor the IPL title for the 2021 season. BCCI secretary Jay Shah welcomed Tata Group to the board. “This is a landmark event for the BCCI IPL as Tata Group is a model of India ‘s global business with more than 100 years of experience and operating in more than 100 countries on six continents.” and the growing popularity of the IPL as a global sports franchise is a testament to BCCI’s efforts. We are very pleased that India’s largest and most trusted business teams believe in the growth of IPL and in partnership with Tata Group, we will look forward to taking Indian cricket and IPL forward, " Shah said.

Why has Vivo been removed from sponsorships?

It is not yet clear whether VIVO has been released from the TITLE sponsor or released at its own discretion. However, there are two main reasons based on what we can imagine why VIVO withdrew as TITLE sponsor of the IPL and lost its five-year contract with the Indian Cricket Regulatory Board.

India- China Relation Constraints- India’s relations with China as a neighboring nation are deteriorating after recent border disputes in the Galway Valley and Ladakh. As of May 5, 2020, troops from both countries are facing melee weapons in the LAC. Which leads to the deaths and injuries of many soldiers on both sides? VIVO, a Chinese smartphone manufacturer has shown its resilience to the Indian market by boycotting the 2020 theme support. However, its return as a sponsor of the 2021 IPL title does not mark any major reason for its exit.

Dipping Revenues- After the 2020 border dispute between the Sino-Indian and the government policy “DO IN INDIA”, it became increasingly difficult for VIVO to re-establish the same stronghold in the Indian Market that it had previously enjoyed. Its share of smartphones in the market has been reduced from 20% to 16% in the last 2 years. In addition, Rs. The 440 crores per season were too bad to continue as a sponsor of the trophy in times of stress. Therefore, this could be the reason why VIVO has been removed or removed as a sponsor of the IPL title.

Following a military coup on the India-China border in June 2020, the BCCI decided to sever ties with Vivo, a Chinese mobile and technology company. Vivo acquired title support rights between 2017 and 2022 for an estimated US $ 341 million, as an extension of its two-year organization from 2015.

Dreams 11 IPL- An old story

In 2020, VIVO withdrew from sponsoring the title due to the Sino-Indian dispute. Therefore, the India Cricket Regulatory Board has decided to hold a formal auction to select the next largest IPL title sponsor company. Big businesses and institutions like Tata Sons, Aditya Birla, L and L, Dream 11, MPL, etc. were part of that bidding process. Tata Sons, who was interested in the agreement and was considered a priority, withdrew because the rights were only available for the 2020 season. In addition, it was thought that VIVO would return as the main sponsor as soon as the conflict between countries ended. Dream 11, a legendary group app company, has become a major Rs. 365 crores, and IPL 2020 became Dream 11 IPL. It was the second IPL season held in both India and the UAE.

TATA interest in IPL

The IPL is one of the largest stadiums of any kind with its large viewing landscape. It has managed to open its customer base doors to its former sponsor VIVO as well. According to reports, there is a 44% increase in traffic for Dream 11, one of the sponsors.

TATA’s interest in the IPL can be explained by the large purchases made by the company recently. TATA bought Big Basket, Cure Fit, 1mg, and even Air India. This explains why one of the oldest industries in the country came close to the IPL. There is no denying that the IPL is the best way to enter the Indian Market and introduce its new acquisition to the prospective customer.

Another reason could be the TATA NEU app which will be launched soon. This sponsorship agreement will assist in the successful development of the excellent TATA Digital app

The IPL will help revive the old Indian Industrial model.

CVC market capitalization

CVC was one of two companies that won bids to own two new franchises. While its bid for Rs 5625 crore helped them win the Ahmedabad Franchise, the RPSG team won the Lucknow franchise with a bid of Rs 7090 crore.

Both new parties are expected to receive a Letter of intent from the BCCI soon and it has become clear that the same is being discussed at the Executive Council meeting.


Content: Ishita, Kajal Khardia and Naman Goel

Infographics: Punit and Vidhi Mathur

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