Vivo may transfer IPL title rights; Dream11, Unacademy in contention

Chinese mobile manufacturing company Vivo, which had suspended its IPL title sponsorship rights for 2020 edition, is eyeing an exit from the Indian Premier League by transferring its rights to interested bidders, which may include fantasy gaming platform Dream11 and edtech start-up Unacademy.

Dream11 had been the IPL title sponsors for the 2020 edition, winning the rights for Rs 222 crore, which was nearly half (Rs 440 crore) of what Vivo was paying annually for a five-year deal.

It is understood that in the prevailing situation when Sino-India geopolitical relations are in a sensitive state, Vivo understands that it's not prudent to continue the association with two years still left.

"It's almost final that Vivo will exit the IPL title sponsorship deal by mutual consent with the board. It was suspended for the 2020 edition. However, there is a clause that allows them to transfer their pending liabilities as one-time title sponsors on the new winner. If board agrees on principle, it can happen," a senior BCCI source told PTI on condition of anonymity.

With IPL set for a nine- or 10-team expansion in 2022, it is expected that the new bidder will get title sponsorship rights for at least three years.

"Dream11 and Unacademy will place their offers to Vivo. Unacademy in any case is an associate sponsor and they are ready to offer a higher amount in order to acquire the rights from Vivo," said an industry insider tracking developments.

It is learnt that MPL, which is the Indian team's kit sponsor may not be allowed to bid for title sponsorship as Dream11 has been a title partner and will get what they call in sponsorship parlance "category exclusivity".

The BCCI brass are expecting that a clearer picture might emerge by the weekend once Vivo gets a concrete final offer.

"Look, Vivo paid approximately Rs 440 crore (Rs 2,190 crore for five years). Now, if BCCI invites bids, just like last year when Dream11 paid Rs 222 crore, it might increase but can't be doubled. But if there is a transfer of rights, the old amount could be matched or even bettered," the source said.

The IPL will have a mini-auction on Feb. 18 in Chennai with a maximum of 61 slots up for grabs across the eight teams.

"Since the title rights transfer will take some time, the Vivo logo is expected to be used during the Feb. 18 auction."