The Chinese smartphone company VIVO will assign its IPL contract to another brand to maintain its sponsorship for the next season in 2021. In doing so, they will have to shelve out 5 % more money as ‘assignment fee’. The possibilities of VIVO regaining the sponsorship rights are very little with the company denying BCCI’s previous offer for a comeback. Meanwhile, the IPL governing council and the BCCI are still in the process to search the official sponsors ahead of the next season.
With the political situation between the two countries still tense, VIVO is keen to assign the remainder of the title sponsorship contract to another brand.
“After the price discovery in the last season, where Dream11 won the rights for Rs 222 crore, Vivo has realised that it has paid much above the right value. So it has asked its media agency GroupM to find a buyer,” a report in Economic Times stated.
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VIVO-BCCI Battle
The news of VIVO looking to find a buyer has been circulating for a few days but as per the report, no official confirmation about the same has been issued from the smartphone brand to the BCCI.
“BCCI has not received any communication from Vivo in this regard,” said a senior office bearer at the board. “Last year was an aberration, but going forward, the board is expecting to get the full amount. The governing council will decide if Vivo comes with an offer, but there will not be a tender.”
Meanwhile, as per the 5 percent assignment fee contract between the BCCI and VIVO, the latter will have to pay 2 crore per year more if it transfers the contract to another brand. On the other hand, as part of the valuation process, the BCCI will earn Rs 66 crores as part of the contract, making the richest-cricketing body in the world even richer.
The BCCI is trying to finalise the sponsorship deal before the IPL 2021 auctions on February 18 in Chennai.
Also Read: BCCI Open To VIVO’s Return As IPL 2021 Sponsor – Reports