NEW DELHI: Talk about humungous jump in value. Chinese mobile firm Vivo has retained the title sponsorship right of the Indian Premier League for a period of five years with a bid of Rs21.99 billion, approximately Rs4.4 billion per season.
Rival Chinese mobile firm Oppo was the next highest bidder at Rs14.3 billion.
To put it into perspective, Vivo had taken over the title sponsorship rights of the T20 League for a two-year period (2016 and 2017) after US beverage giant PepsiCo terminated its agreement with the BCCI two years early on its five-year agreement inked beginning 2013. In the second year of its deal, Vivo paid the BCCI Rs92 million as title rights fees.
Which makes for a 4.8-FOLD jump in annual rights value from the agreement that has just concluded to the new one which Vivo has signed on to. Unbelievable but true.
The Board of Control for Cricket in India (BCCI) had invited applications through its Invitation to Tender process from parties to bid for the title sponsorship rights, starting August 1 2017 and ending on July 31, 2022.
When the tender was issued, IPL chairman Rajeev Shukla had told PTI, “I’m pleased that both the governing council and CoA members have finalised the timelines for the next rights period. If the success of 2017 season is an indication, I believe we will be able to get the best value and service for the world’s premier Twenty20 extravaganza. The early announcement will also help the prospective bidders/service providers to prepare well.”
BCCI statement in full:
The Board of Control for Cricket in India (BCCI) today announced its association with Vivo as the title sponsor for the Indian Premier League for the next five years. The premium global smartphone manufacturer bid Rs2199 crores ( Rs21.99 billion), which is a 554% increase over the previous contract.
In the upcoming five IPL seasons (2018 - 2022), Vivo and IPL will have extensive cooperation in terms of sports events, on-ground activations and marketing campaigns.
Speaking on the development, chairman of the IPL, Mr Rajeev Shukla said, “We are delighted to have Vivo joining us once again as the title sponsor for IPL for next five years. The association with Vivo has been great for the past two seasons and I am sure they will continue to make it bigger and better.”
Acting president of the BCCI, Mr CK Khanna, said, “Vivo as a brand has carved its niche and legacy in the market. We are extremely glad to have Vivo as the title sponsor and look forward to an enriching affiliation for both stakeholders.”
Acting secretary of the BCCI, Mr Amitabh Choudhary, said, “We received an overwhelming response for the title sponsorship rights and we are glad to have Vivo back on board. It is a renewal of a fruitful relationship with the brand that will extend for the next five years.”