BCCI May Exclude Chinese Brands from IPL Title Sponsorship

The Board of Control for Cricket in India (BCCI) is actively seeking a title sponsor for the Indian Premier League (IPL) and has outlined stringent conditions for prospective bidders. Notably, the BCCI has indicated that it may not entertain bids from Chinese companies or brands due to its reluctance to be associated with firms from countries that do not have friendly relations with India. The reserve price for the rights is set at INR 360 crore per year.

The decision comes in the wake of public backlash and a negative experience with Vivo, a Chinese smartphone maker, which exited a five-year sponsorship agreement following a border standoff between India and China. As a result, the Tata Group took over the sponsorship rights.

The Invitation to Tender (ITT) document issued by the BCCI includes a clause stating that bidders incorporated in jurisdictions with which India does not have friendly relations will not be considered. Additionally, the BCCI is rejecting bids from companies associated with fantasy games, sportswear, cryptocurrency, betting, and gambling firms.

The ITT document specifically prohibits companies engaged directly or indirectly in betting or gambling services, crypto trading or exchange, fantasy gaming, alcohol products, and certain categories of sportswear. It also disallows bids from companies operating from tax havens such as Mauritius and the British Virgin Islands.

The need for a new title sponsor arose as the previous deal with the Tata Group concluded after the last season. The upcoming sponsorship agreement is set to span five years, extending until 2028. The reserve price of INR 360 crore aligns with the value the Tata Group had been paying for the preceding two seasons.

Although the initial response to the sponsorship tender hasn’t been very encouraging, interested parties still have time to purchase the ITT document and participate in the bidding process. The ITT document will be available for purchase until January 8, with the bidding process expected to take place around January 13-14.

Given the IPL’s status as one of the premier leagues globally, it is anticipated that a reputable firm will come on board at a favorable price. However, the BCCI’s strict conditions, particularly regarding Chinese brands, may impact the pool of potential sponsors for the prestigious tournament.

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