Ever since the face-off between India and China at Ladakh’s Galwan Valley, there has been rising tension between them. Such that Chinese products in India might face a potential boycott in the country.
Amidst all this, the BCCI may part ways with IPL’s title sponsor’s Vivo if the government insists on doing so. Incidentally, Vivo had acquired the IPL title sponsorship for Rs 2,199 crore in 2018 in a five-year deal.
To add to the ongoing tension, Team India’s kit sponsorship with Nike is now at a risk. We may not see Nike’s logo on India’s jersey during their next outgoing. Nike’s four year deal with BCCI is set to expire in September this year.
BCCI to cancel ties with Nike as kit sponsor?
The brand has been associated with team India since 14 years had signed a Rs 370 crore cash-rich agreement with BCCI in 2016 which included Rs 85 lakh per match fee.
“Nike’s current deal as ‘kit partner’ of the BCCI is ending in September. It was a four-year deal worth Rs 370 crore, which included Rs 85 lakh per match fee and a royalty of over Rs 30 crore to the board,” said a top source in the BCCI.
Meanwhile, Nike has suffered a severe downfall in its business in this pandemic. They have been seeking an extension from BCCI at a discount for the lost time due to cancellation of tours.
“Nike’s business has greatly suffered during the lockdown and it is seeking an extension for lost time at a discount. The board may not agree and we may have to come up with tender for the position,” he added.
India hasn’t played a single game ever since the first ODI between India and South Africa which was washed out earlier this year in January. The situation also forced BCCI to cancel their tours to Sri Lanka and Zimbabwe.
The Indian Premier League which was supposed to take place in April was also postponed in view of the COVID-19 situation. According to reports, BCCI is trying to work out feasible plans to conduct the tournament later this year.
A sports marketing professional said it’s unlikely that BCCI will agree for a contract extension.
“Knowing the BCCI, I doubt they will agree to a contract extension or even a discount. The BCCI should not play hardball now or they will see risk alienating sponsors who are in dire straits due to the economic slump,” said a sports marketing expert.