IPL Title Sponsorship Rights: BCCI Announces Tender for 2024-2028 Seasons
The Board of Control for Cricket in India (BCCI) is aggressively seeking a title sponsor for the Indian Premier League (IPL) and has laid forth strict requirements for interested parties. Notably, the BCCI has hinted that it may not accept proposals from Chinese corporations or brands, citing a desire not to be affiliated with firms from nations with whom India does not have favorable relations. The rights have a reserve price of INR 360 crore each year.
While no specific countries or companies have been named, the BCCI’s decision is based on public outrage and a bad experience with Vivo, a Chinese smartphone manufacturer. This situation emerged as a result of India and China’s border dispute. As a result, Vivo elected to terminate the five-year sponsorship agreement, handing over the rights to the Tata Group.
The condition in the Invitation to Tender (ITT) document states, “Each bidder who is a corporate entity must not be incorporated in a jurisdiction/territory with which India does not have a friendly relationship.” If any corporate(s) that is a shareholder or proposed shareholder in the Bidder is incorporated in a jurisdiction/territory with which India does not have friendly relations, the Bidder will be required to provide a detailed chart of the shareholding in such Bidder or its ultimate Parent Company, as well as the ultimate owners/beneficiaries of all shareholders that are body corporate in such Bidder or its ultimate Parent Company, along with the Bid Document.
The Board of Control for Cricket in India (BCCI) recently announced the release of the tender document for the title sponsorship rights of the Indian Premier League (IPL) for the 2024-2028 seasons. This move comes after the conclusion of Tata Sons’ two-year title sponsorship agreement, which began in January 2022. The BCCI is now inviting reputed entities to participate in the bidding process for the prestigious title sponsorship rights.
The Tender Process
The BCCI has set a deadline of January 8, 2024, for interested parties to purchase the tender document. To participate, brands must meet the eligibility criteria outlined in the Invitation to Tender (ITT) document, which can be obtained upon payment of a non-refundable fee of ₹5,00,000 plus applicable Goods and Services Tax. The ITT will be available for purchase until the specified deadline.
Eligibility and Prohibited Categories
Reputed entities that satisfy the eligibility criteria set out in the ITT are eligible to submit their bids. However, the BCCI has barred certain brand categories from participating in the bidding process. These prohibited categories include alcohol products, betting, cryptocurrency, real money gaming (excluding fantasy sports gaming), tobacco, and those that may offend public morals, such as pornography.
Tata’s Right to Match
The BCCI has clarified that the highest bid submitted by the parties will be subject to Tata Sons, the incumbent title sponsorship rights holder, exercising its right to match the highest bid. As per the previous agreement between BCCI and Tata Sons, the cricket board is required to notify Tata of the highest bid amount received during the tender process. Tata then has the right, but not the obligation, to match the highest bid within five working days of the financial bids’ opening and notify its intent to the BCCI. If Tata exercises this right, BCCI will be obligated to grant the title sponsorship rights to the company.
Tata’s Previous Title Sponsorship and IPL Brand Value
Tata Sons became the title sponsor of the IPL in January 2022, replacing Vivo for two years. The conglomerate reportedly committed Rs 670 crore for the two-year title sponsorship rights. Vivo had previously acquired the IPL title sponsorship rights for a staggering Rs 2200 crore for the 2018-2022 seasons. However, due to the tensions between India and China, Vivo had to relinquish the title sponsorship rights, leading to Tata’s appointment.
The IPL’s brand value has seen significant growth over the years, with its overall combined brand value surpassing the 10 billion dollar mark. As of now, the IPL’s brand value stands at 10.7 billion dollars, a 28% increase from the previous year. This growth can be attributed to various factors, including a lucrative media rights deal, an increase in IPL revenues, the addition of two franchise teams, and the return to full stadium attendance in 2023 following the COVID-19 pandemic.
BCCI’s Right to Cancel or Amend Bidding Process
The BCCI has emphasized that it reserves the right to cancel or amend the bidding process at any stage and in any manner without providing a specific reason. This flexibility allows the cricket board to ensure the transparency and integrity of the tender process.
Conclusion
The BCCI’s announcement of the tender for the IPL title sponsorship rights for the 2024-2028 seasons opens up new opportunities for reputed entities to align themselves with one of the most prestigious cricket tournaments in the world. With Tata Sons’ right to match the highest bid, the bidding process promises to be competitive. As the IPL’s brand value continues to soar, securing the title sponsorship rights would provide significant visibility and brand exposure for the chosen entity. Interested parties are encouraged to purchase the tender document and participate in this exciting opportunity.
