ET BureauMUMBAI: Chinese smartphone maker is ready to let go of Indian Premier League (IPL) title sponsorship, if it finds a buyer at the right price, three people with direct knowledge of the matter told ET.
Vivo, which was supposed to resume as the title sponsor of the cash-rich league in 2021 — after a one-year hiatus — owns the rights for three more seasons at Rs 440 crore per year. However, the company is open to taking a hit and assigning the rights to any interested party, sources said.
“After the price discovery in the last season, where Dream11 won the rights for Rs 222 crore, Vivo has realised that it has paid much above the right value. So it has asked its media agency GroupM to find a buyer,” said one of the sources.
It is learned that Vivo has not officially informed the Board of Control for Cricket in India (BCCI) of its intention, but will go to the board with the proposal, in case it receives one.
As per the contract, Vivo, which picked up the rights for 5 years for Rs 2,190 crore may assign the rights to a third party but it will have to pay a 5% assignment fee.
In this case, if Vivo finds a buyer, overall pay-out to the BCCI will go up by around Rs 22 crore per year.
If a buyer comes at less than Rs 462 crore per year, Vivo will have to cough up the remaining amount.
“BCCI has not received any communication from Vivo in this regard,” said a senior office bearer at the board. “Last year was an aberration, but going forward, the board is expecting to get the full amount. The governing council will decide if Vivo comes with an offer, but there will not be a tender.”
Vivo, which was supposed to resume as the title sponsor of the cash-rich league in 2021 — after a one-year hiatus — owns the rights for three more seasons at Rs 440 crore per year. However, the company is open to taking a hit and assigning the rights to any interested party, sources said.
“After the price discovery in the last season, where Dream11 won the rights for Rs 222 crore, Vivo has realised that it has paid much above the right value. So it has asked its media agency GroupM to find a buyer,” said one of the sources.
It is learned that Vivo has not officially informed the Board of Control for Cricket in India (BCCI) of its intention, but will go to the board with the proposal, in case it receives one.
As per the contract, Vivo, which picked up the rights for 5 years for Rs 2,190 crore may assign the rights to a third party but it will have to pay a 5% assignment fee.
In this case, if Vivo finds a buyer, overall pay-out to the BCCI will go up by around Rs 22 crore per year.
If a buyer comes at less than Rs 462 crore per year, Vivo will have to cough up the remaining amount.
“BCCI has not received any communication from Vivo in this regard,” said a senior office bearer at the board. “Last year was an aberration, but going forward, the board is expecting to get the full amount. The governing council will decide if Vivo comes with an offer, but there will not be a tender.”
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