Quixplained: Why Vivo’s withdrawal as this year’s IPL title sponsor matters

How will Vivo’s departure hurt the BCCI as well as the franchises? How do expenditures, income and profit work for the franchises in a normal season? In what other ways can Covid and an IPL away home affect the revenue streams of franchises? We explain.




Chinese smartphone make Vivo has announced its withdrawal as the 2020 Indian Premier League (IPL) title sponsor. Vivo had acquired the IPL title sponsorship in 2018 for Rs 2,199 crore in a five-year deal. Accordingly, the company gives the Indian cricket board Rs 439.8 crore per year as sponsorship commitment.

Vivo had in fact, come to the IPL fold in 2016 itself — as a short-term sponsor after Pepsi pulled out of its five-year deal over a betting and spot-fixing scandal. Vivo’s first two-year sponsorship was worth Rs 200 crore — before the company signed a fresh deal after the 2018 edition of the T20 league, outbidding its nearest rival, Oppo, which had bid Rs 1,432 crore.

How will Vivo’s departure hurt the BCCI as well as the franchises? How do expenditures, income and profit work for the franchises in a normal season? In what other ways can Covid and an IPL away home affect the revenue streams of franchises? We explain:


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