In an unprecedented turn of events, IPL Title sponsors, VIVO is about to discontinue its association with the Indian Premier League. The 2020 edition of the IPL will take place in the United Arab Emirates.
The IPL Governing Council’s meeting had decided to not drop VIVO as the title sponsors; There was huge speculation about the Chinese company’s future prospects with the high-profile Indian competition.
The Chinese mobile handset manufacturer had been in continuous talks with the Board of Cricket Control in India (BCCI). It came under severe attack on all platforms of social media. The outrage among the public against Chinese companies has been on a rise.
The activities of the Chinese army along the Line of Actual Control (LAC), and the Galwan Valley clash have lead to the outburst. The Indian government had also banned several Chinese applications. VIVO being the title sponsors, pays around 440 crores per annum, as a part of its association.
REACTION OF THE FRANCHISES
However, the BCCI or by the Chinese smartphone company has not confirmed the news. Officials of several franchises have stated that they have not been informed about the decision. They are going to rely upon the cricket board, the BCCI, to create a contingency plan. Whether the disassociation will be for one year or more, nothing is confirmed.
POSSIBLE IMPACT OF THE DISASSOCIATION
This decision by VIVO could be a body blow for the IPL. The world is undergoing a financial crisis in this pandemic situation. It is going to be difficult to procure a sponsor in the 11th hour. The last sponsorship bid took place in 2017. VIVO has retained it for an amount of 2199 crores, valid up to 2022.
The franchises are set to lose a significant amount because of this decision. They have to closely monitor the changes taking place. It allows them to plan for the season from before.
The Royal Challengers Bangalore has already entailed a loss of 35 crores. It is because the tournament has been shifted to UAE. Moreover, the matches will take place without any spectators. It implies tremendous losses for all the franchises.