BCCI stuck between the devil & the deep sea

MUMBAI: The Board of Control for Cricket in India (BCCI) will issue an expression of interest (EoI) for IPL’s title sponsorship rights on Monday and seek final bids by August 18 as it attempts to find a sponsor after suspending ties with Vivo because of negative public sentiment against Chinese brands. Sources in the board have confirmed to ET that the EoI for IPL 2020 will go live on August 10 and interested parties will have time till August 14 to throw their hat in the ring. “By Friday (August 14), sponsors will have to let the BCCI know if they are interested in bidding, and by next Tuesday, the bids have to be in,” said one of the sources, while adding that there is no base price for the rights. Sources said the board is expecting to close the deal at Rs 180-200 crore, after an initial 50% discount offer to India Inc — including the Tatas, Ambani (RIL) and Adani — generated little enthusiasm. But after BCCI’s repeated overtures, a few corporations which have warmed up to the idea of IPL sponsorship — like Tata Group, Amazon and RIL — have asked for not only lower sponsorship rates but also an extension in the sponsorship term to two-three years, top officials close to the development said. 77454253Media experts say the potential sponsors may be looking for a better bargain with Rs 150-170 crore as the fair value. However, it wants the rights for a minimum of three years so that IPL association benefits all Tata brands. But officials added that group ‘may consider’ a bid only at around Rs 150-170 crore, and that too, if the board agrees to a longer time period. The Tata Group did not comment on the subject.As per sources, even Amazon India is considering the sponsorship but at Rs 150 crore. Amazon India did not respond to ET’s email query. Sources said BCCI has been pursuing Reliance Jio. However, officials close to Reliance said it considers Rs 150 crore as too high and feels that the Vivo deal was overpriced. RIL did not comment. "Some companies are open for a multi-year deal at a discounted price but we are expecting Vivo to come back next year at the original value of Rs 440 crore," said one of the BCCI sources cited. A sports marketing expert, who is advising a client on rights bidding, added: "Vivo has thrown the spanner in the wheel by blocking others for next two years with the same price of Rs 440 crore. They (IPL / BCCI) are caught between the devil and the deep sea." Emails to BCCI did not elicit any response.

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