IPL 2020 news: VIVO set to back out as IPL 2020’s title sponsor

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VIVO IPL 2020 sponsors – Chinese mobile manufacturer and Indian Premier League’s title sponsor, VIVO are reportedly set to end their contract with the BCCI ahead of the IPL 2020 season which is to be held from September 19 to November 10 in the UAE. The speculation around last year’s title sponsor’s decision to back out can be traced out to the social media backlash that the company had been facing since BCCI’s decision to retain VIVO as the title sponsor became public post the Governing Council meeting.vivo ipl 2020 sponsors

The social media outrage was largely the result of the ongoing diplomatic and border tensions between India and China. Although neither BCCI nor VIVO have so far confirmed this speculation. Senior officials at the mobile manufacturing giant have reportedly said that the decision rests with BCCI to come up with a final decision.

VIVO IPL 2020 sponsors

The coronavirus pandemic already hitting the financial aspects of this season of the IPL. Now the last moment backing out of VIVO can prove to be yet another major blow to already dangling financial situation. In 2017, VIVO won the 5-year contract (2017-22) of being IPL’s title sponsor with a humongous bid of Rs. 2199 crore. BCCI was set to receive around Rs. 440 crores per season of the IPL. But this U-turn can prove to be a difficult affair for the BCCI.

VIVO IPL 2020 sponsors

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With the recent financial developments around this season’s IPL, franchises are vigilant as they are already losing a massive revenue due to the absence of spectators in the cricket stands and with this season being moved to the UAE. Royal Challengers Bangalore, for instance, stand to lose a massive Rs. 35 crores owing to the absence of spectators in the grounds. In the 2018 revenue sharing contract between the franchises and the BCCI, the franchises would be receiving 50% of all revenue including sponsorship deals, broadcasting deals etc. This means out of the Rs, 440 crores that BCCI would receive each season from VIVO, Rs. 220 crores would be split between 8 franchise teams. So the franchises would stand to lose approximately Rs. 27 crores owing to VIVO’s decision to back out.

Unless the BCCI strikes a new deal with another sponsor, the franchises are already looking at a grim season in terms of capital gain as they have to incur extra costs this season including travel to the UAE, lodging, and health maintenance costs.

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