Putting all rumors to rest on Vivo staying away from IPL 2021, Brijesh Patel, Chairman, IPL Governing Council announced that Vivo is back on board as Indian Premier League's title sponsor for this year.
He said that 2020 was a tough year for all sponsors but everyone stuck by us and we should appreciate that.
Talking about Vivo coming back as IPL's title sponsor, Sandeep Goyal, Chairman, Mogae Media, an advertising agency, said, "For BCCI it may not have been an easy decision to bring back Vivo but it ensures for much smoother monetisation. No new tender required. A guaranteed sponsorship amount far larger than Dream 11’s. For Vivo too it would be a big relief to be out of the doghouse.
Adding to this Lloyd Mathias, Investor and Business Strategist, said, "Last year the tensions were high so BCCI played safe where they suspended the sponsorship but did not cancel it. So, I am not surprised with this decision. Last year was distress sale. So, BCCI is trying to make sure their finances are not impacted. BCCI is ensuring that IPL gets its full brand value."
Last year Chinese phone brand Vivo had to back out as title sponsor of IPL 13 due to anti-China sentiment which escalated after the border clash between India and China at Galwan valley where 20 army personnel were killed in the face-off.
It was fantasy sports platform Dream11 that replaced Vivo as IPL 13's title sponsor after signing a one-year deal for Rs 222 crore.
However, this was significantly lower than Vivo's deal which it had signed for Rs 2,190 crore for five years (2018-2022) which brought its yearly breakup to around Rs 440 crore.
Despite Patel's announcement regarding Vivo continuing as IPL title sponsor, there are still speculations that Vivo may transfer the title sponsorship rights to another company. But Mathias said this may not be possible.
"Once that they (Vivo) have got back, the ability to change may not be possible."
Even Goyal said that it would be difficult for "Vivo to transfer the title sponsorship rights as the contract would not provide any such latitude."
While many believed that Vivo was out of IPL this year, Moneycontrol had reported that there was no clear decision on IPL title sponsorship. A person close to the development had said that "It would not be correct to say Vivo has gone out of IPL."
And Brijesh Patel made it clear during the IPL auction on February 18 that Vivo is staying in the league.
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