Due to the increasing tension between India and China at the Galwan Valley, there have been major protests against chinese products in India. As a result, Chinese smartphone major Vivo could very well lose the title sponsorship of the IPL. Huge pressure has been constantly building on the BCCI as governing bodies and fans wants the league to cut all their ties with Vivo.
Since 2015, the Chinese smartphone company has been the title sponsors of the Indian Premier League. Due to the huge protests, the IPL governing council has called for a meeting this week to review their contracts with the Chinese Tech major. The meeting could also discuss the possible window for the upcoming IPL. The Indian officials are waiting for the final verdict regarding the future of the T20 World Cup that is supposed to be played in Australia later this year.
BCCI to scrap deal with Vivo?
BCCI treasurer recently stated that Vivo will indeed continue as the title sponsors of the IPL as they need to maintain contractual obligations. It all changed quickly as the IPL governing council made it very clear that the national interests will have to be put ahead of business interests during this time.
Taking note of the border skirmish that resulted in the martyrdom of our brave jawans, the IPL Governing Council has convened a meeting next week to review IPL’s various sponsorship deals 🇮🇳
— IndianPremierLeague (@IPL) June 19, 2020
The official Twitter account of the Indian Premier League tweeted, “Taking note of the border skirmish that resulted in the martyrdom of our brave jawans, the IPL Governing Council has convened a meeting next week to review IPL’s various sponsorship deals”.
If the BCCI decides to cancel the contract of Vivo on their own then the Chinese smartphone company will have the option of invoking the exit clause and they can also approach the court to get damages due to their contract being ended early than expected.
“It is a deal that needs to be worked out and discussions are on ahead of the IPL Governing Council meeting this week. After all, Vivo has been on board of the IPL since 2015 and had renewed the contract in 2018 for more than Rs 2000 crore for five years. It has been a smooth relationship so far and if the parties are snapping the ties then everyone like it to be in a friendly way”, said a BCCI official.
The associate and fantasy league partners of the IPL are brands such as Swiggy, Dream 11. Both the firms have investment from Tencent, the Chinese tech major in them. As of now, the 13th season of IPL has been postponed due to the COVID-19 but reports suggest that the league could be played in September-October this year.