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IPL title sponsorship: Tata Group retains the deal till 2028! No Aditya Birla Group
Recently, the Aditya Birla Group (ABG) and Tata Group were the two contenders to grab the IPL title sponsorship for the next five years. The Tata Group signed the highest sponsorship deal in the history of IPL for INR 2,500 crores ( 301 million USD approximately)
The forthcoming edition of the Indian Premier League has further expanded by promising to provide a high-quality upgraded contest.
For the last two seasons, the Tata group has officially replaced Vivo- a Chinese mobile company and technology company, by grabbing the IPL title sponsorship.
Tata Group’s bidding for the next five years jumped to 13.7%. In reality, it is a huge jump from what Vivo paid during the 4 years of 2018-22.
Moreover, the BCCI decided to temporarily halt the partnership with Vivo in June 2020. It was due to the political tensions between India and China.
Originally, Vivo bagged the IPL title sponsorship for 2018-22 by accepting a deal of INR 2,199 crores( 341 million USD at that period). Initially, Dream11 replaced Vivo as a sponsor for IPL 2020. However, Vivo returned in the 2021 season but couldn’t sustain for the subsequent seasons of IPL.
Though the Vivo contract was extended up to 2023, certain conditions were implemented.
Additionally, the Tata group is the official title sponsor of the Women’s Premier League (WPL) in 2023 and 2024.
Earlier, DLF, Vivo, Pepsi, and Dream11 have previously held the rights. The annual value was initially INR 40 crores with DLF sponsoring from 2008 to 2012. Later, Vivo offered INR 440 crores per year during 2018-19.
How does Tata Group retain the IPL title sponsorship?
Previously, Tata Sons gained the IPL title sponsorship in 2022 by paying INR 670 crores for the two-year rights. In other words, the annual payment is INR 335 crores.
Only the Tata group and ABG accepted the BCCI’s condition to become the Indian Premier League title holder.
On 12th December 2023, the BCCI released a tender for the IPL title sponsorship rights for the season 2024-28.
According to the bidding process of BCCI, the current holder of the title has the first right to match the offer.
The base price of the bidding was INR 1,750 crores for 5 years. In simpler calculation, it is INR 350 crores for 74 IPL matches.
Also, BCCI recommended bidders apply for the base price of INR 375 crores and 400 crores. Particularly, the recommendation was based on the chances of increasing the competition from 74 to 84 and 94 matches.
Probably, BCCI might plan to increase the number of matches to 84 in IPL 2025 and 2026. The higher officials and experts predicted that by 2027, the count might increase to 94 matches.
Until 12th January 2024, ABG was the sole and leading bidder, which was indeed the last date to submit the bids.
But, according to the deal with the BCCI, Tata Sons has a special right. They had time to bid till 19th January 2024 to equal ABG’s bid value.
As a result, to retain the title, the current bidding holder must be ready to pay a value of 84 to 94 matches per year.
Finally, Tata Sons managed to match ABG’s bid of INR 2,500 crores for 5 years. It means that the amount is INR 500 crore per year.
Conclusive facts about the IPL title Sponsorship 2024-28
Notably, the BCCI rejected many Chinese companies in recent times to avoid political issues.
Similarly, the groups from fantasy sports, clothing, and cryptocurrencies were considered ineligible for the IPL title sponsorship.
Arun Singh Dhumal– The Chairman of IPL, marks the collaboration of Tata Group as a significant milestone in the history of IPL.
He also predicted that the league’s media rights value might reach a whopping amount of $50 billion in the next 20 years.
Moreover, he adds that the Tata Group’s commitment to cricket is exceptional. By providing the IPL title sponsorship to the reputed company, the franchise league plans to scale new heights. Also, an unparalleled level of cricketing environment will be provided to all fans.
Furthermore, BCCI secretary Jay Shah feels that the uncompromising financial commitment can reflect the impact of IPL globally in international matches.
Earlier, BCCI revealed that the IPL media rights have been acquired for $ 6.2 billion.
Several IPL franchise owners have expanded their business in the international league matches. By acquiring different teams in the overseas franchise T20 league offers many multi-league contests. As a result, many cricketers prioritize T20 Leagues over international cricket.
Overall, the brand value of IPL has increased tremendously with 433% since its inaugural edition in 2008.