BCCI invites tenders for IPL 2020 sponsorship
As reported by InsideSport Monday morning, BCCI has called for Stakeholder Expression of Interest for the IPL 2020 Sponsorship.
IPL’s new main sponsor to replace Chinese mobile phone company Vivo will have the rights for only a four-and-a-half-month period and the highest bid will not necessarily end up as the winner, the BCCI said on Monday.
Vivo, which had a 440 million rupee per year deal for five seasons, has suspended its association with the Board due to the China-India border standoff. BCCI released the invitation to tender for a new sponsor on Monday
Secretary Jay Shah announced a 13-point clause for the submission of interested “third party” bids and the winner will be announced on August 18. The last date for submission of bids is August 14.
“The Rights are available for the period between August 18, 2020, and December 31, 2020,” the BCCI press release stated.
“Details on the rights and the categories of products in which the rights are available will be provided only to parties who submit the EOI and are deemed eligible,” he stated.
The BCCI also stated that bidding for the highest amount may not win the rights to a company if the board is not satisfied with its plans to market its most prized property.
“… It is clarified that the BCCI will not be obliged to grant the rights to the third party who indicates the willingness to pay the higher rates in the course of discussions/negotiations with the BCCI after submitting an EOI”, stated the BCCI.
“BCCI’s decision in this regard will also depend on a number of other relevant factors, including, among others, the way in which the third party intends to exploit the Rights and the potential impact of the same on the IPL brand…”, the BCCI communicated declared.
“… (It will) be examined/evaluated by BCCI in the course of discussions/negotiations with interested third parties that submit an EOI,” he added.
It can now be safely assumed that BCCI will get a lower valuation over a four-month period compared to Vivo, which had the rights for a longer duration.
According to the BCCI rules for accepting the ‘Expression of Interest’ (EOI), “… the business volume of the interested third party must exceed 300 million rupees (only three hundred million Indian rupees) according to the latest audited accounts”.
Audited accounts must be submitted with the offer.
The BCCI also made it clear that intermediaries or agents cannot enter the bidding process and that “such bids will be cancelled.”
“It is clarified that marketing agencies/agents are not eligible to bid and any offer submitted by a marketing agency/agent will be rejected from the beginning.”
Yoga guru Baba Ramdev’s Patanjali Group is among those who have expressed interest in bidding for rights.