The Board of Control for Cricket in India is not acting against the Indian Premier League title sponsor Vivo at least for now. The BCCI has confirmed that there was no immediate plan to suspend Vivo’s five-year deal in spite of growing calls to boycott the Chinese brands following the stand-off and prevailing tension in the Galwan Valley in the Leh Ladakh region.
BCCI treasurer Arun Dhumal has confirmed that the board wasn’t considering any such move. “As of now, there is no such plan (to terminate the contract),” Dhumal has said.
The BCCI earns ₹ 440 crore per annum from the five-year IPL title sponsorship deal, which the BBK electronics brand had retained for a record ₹ 2,199 crore bid. The company had paid ₹ 100 crore per annum for the same property for the IPL 2016 and 2017 seasons.
Dhumal argued that cancellation of the contract will also have an adverse effect on the Indian economy and work adversely on the trade balance with China. “By way of the IPL contract Vivo is paying back a part of its revenues from the Indian market. Board also pays taxes on that revenue. That is working for India’s cause. We are only benefiting from it,” he said.
“What is the gain by cancelling the contract when the brand is still selling its product in India.”
The BCCI is targeting to host the IPL 2020 between September and November. While termination of the contract without a legal ground or breach will lead to a litigation, there is no way the board will be able to get a deal to match the values Vivo is paying. That will be a double blow the board which is already losing revenue on account of cancelled series due to the COVID-19 pandemic.
The call to boycott the Chinese brands have been growing after 20 Indian soldiers were martyred in a standoff with the Chinese Army at the Gwalan Valley, which the Chinese soldiers had unlawfully occupied by breaching the line of actual control.