Chinese technology company — Vivo is likely to withdraw its association as title sponsors of the cash-rich Indian Premier League (IPL).
According to sources, the Chinese company is trying to ‘assign’ the sponsorship to any company willing to buy off the remainder of the deal with the Board of Control for Cricket in India (BCCI).
According to its five-year contract with the Indian cricket board, Vivo cannot ‘exit’ from the deal but could assign it to another company at the same or more value. The five-year deal between BCCI and Vivo starting 2018 was 2199 crores and was supposed to end in 2022.
Vivo has so far paid 363 crores and 400 crores in 2018 and 2019 respectively however, the deal witnessed a pause in 2020 when the league was played in the United Arab Emirates (UAE).
Significantly, the tension between India and China had forced the BCCI to temporarily suspend the contract with Vivo last year after which fantasy cricket operators Dream11 bagged the title sponsorship of the lucrative league for 222 crores for a year.
According to the ‘renewed’ arrangement with the Indian cricket board, Vivo were to pay 440, 484 and 512 crores in 2021, 2022 and 2023 respectively but now the mobile maker wants to sell off (assign) the remainder of the title sponsorship.