The business empire of the Tata group has widened as the blue-chip company, after stretching its arms across various industries including information and technology and aviation, has now pitched into cricket as the new title sponsor of the Indian Premier League (IPL). In what has become a big deal of 2022, Tata has taken the baton by replacing the Chinese mobile manufacturer Vivo. The announcement of a major transition was done on Tuesday - January 11.
With the deal, the upcoming IPL season will carry Tata as its title sponsor. The decision was taken at the Governing Council meeting of the IPL that was held on Tuesday. After the council meeting, IPL Chairman Brijesh Patel has confirmed that the Tata Group has closed the deal to replace Vivo. Patel has also disclosed that Governing Council has approved the Letter of Intent to be issued to CVC Capital, whose acquisition of the Ahmedabad franchise has been under a cloud for over a couple of months.
Vivo has won the title rights at a cost of INR 440 crore a year in 2018. However, the mobile manufacturer had faced a setback and paused the deal as the sequel of Indo- China diplomatic standoff with the nationwide calls growing to remove Vivo from the IPL. There was a brief transition of title rights from Vivo to Dream 11 and Vivo was retained back to the board.
Vivo has a couple of years left in its sponsorship deal with the league. However, following the Governing Council's decision, the Tata Group will step in and remain the title sponsor for the 2022 and 2023 seasons. The reports say that the Board of Control for Cricket in India (BCCI) was fine in Vivo quitting the space and the board has helped Vivo and the Tata Group to reach an agreement.
On the other hand, BCCI will not lose any money as it is still assured of an annual sponsorship sum of Rs 440 crore which will now be paid by the new sponsors. It has been reported that the Tata Group will be the title sponsors for the 2022 and 2023 editions of the IPL. Though the total deal amount was not made public, the BCCI will be keeping 50 per cent of the money earned from the title sponsor and the rest of the money will be distributed to the IPL franchises, which are now ten with the addition of two new teams this year.