BCCI's IPL Title Sponsorship Bidding Process Raises Questions
by EVENTFAQS Bureau Industry Watch | January 3, 2024 | News
BCCI
The Board of Control for Cricket in India (BCCI) has stirred a sense of confusion among prospective bidders for the Indian Premier League (IPL) title sponsorship rights. With a base price set at Rs 350 crore per year for 74 matches, or Rs 1750 crore for five years, the BCCI has also introduced a right-to-match provision, allowing Tata Sons the opportunity to match the highest bid.
Tata Sons, having paid Rs 670 crore over two years for the IPL title sponsorship rights, seems to be at the center of the debate. The right-to-match clause has perplexed potential bidders, with some feeling it may give Tata an unfair advantage.
The BCCI has advised bidders to consider 84 and 94 matches at Rs 375 crore and Rs 400 crore base prices, respectively, but the final decision will be based on the aggregate value of the 74 matches. The board plans to increase the number of matches to 84 in 2025 and 2026 and 94 in 2027.
Executives involved in the IPL title sponsorship bids express their confusion and concern. A top sports marketing executive questions the point of participating in the bidding if Tata can eventually match the highest bid. The right-to-match provision has left brands uncertain about entering the bidding process.
Some insiders suggest that the provision may be a method for the BCCI to conduct price discovery, as Tata Sons might have declined to pay more than the base price. However, if Tata matches the highest bid, it could result in a significant loss of face for the executive who recommended the bid.
The BCCI is obligated to inform Tata of the highest bid amount received, and Tata can exercise the right to match within five working days. Critics argue that this provision gives Tata an unfair advantage over competitors, as it allows them to potentially secure the sponsorship deal regardless of the highest bid submitted by other brands.
In 2022, Tata Sons replaced Vivo as the title sponsor of the IPL. Vivo had acquired the title sponsorship rights for a staggering Rs 2200 crore for the 2018–2022 seasons. The ongoing confusion and debates surrounding the IPL title sponsorship bidding process highlight the need for clarity and fairness to ensure a transparent and competitive environment for all potential bidders.
With a base price set at Rs 350 crore per year or Rs 1750 crore for five years, the BCCI has also launched a right-to-match provision, allowing Tata Sons the opportunity to match the bid.