The Tata Group has successfully secured the title rights to the Indian Premier League (IPL), securing the status for the next five years by extending the agreement until 2028. The pact includes a pledge to contribute INR 500 crore per season.
According to the conditions of the Invitation To Tender (ITT) document, Tata had the right to match any competitive bid submitted by another business entity. In accordance with this clause, the group has decided to match the Aditya Birla Group’s INR 2500 crore value. The Board of Control for Cricket in India (BCCI) announced the decision on Friday.
The TATA Group sponsored the IPL in 2022 and 2023, as well as the Women’s Premier League. The reserve price for the rights was INR 365 crore, which the Tata Group paid annually for the previous two seasons.
Words of BCCI secretary and IPL chairman for TATA group
“We are thrilled to announce our association with the TATA Group as the IPL’s title sponsors. The league has transcended borders, captivating audiences worldwide with its unique blend of skill, excitement, and entertainment,” said Jay Shah, BCCI’s Honorary Secretary.
“The collaboration with TATA Group for the title sponsorship of IPL 2024-28 is a significant milestone in the IPL’s journey, The TATA Group’s record-breaking investment of Rs 2,500 crore demonstrates the great significance and attraction that the IPL has in the world of sports.” IPL chairman Arun Singh Dhumal stated.
“This extraordinary figure not only establishes a new standard in the league’s history but also reinforces the IPL’s status as a major sporting event with worldwide reach. TATA Group’s dedication to cricket and sports is genuinely admirable, and we look forward to reaching new heights together and providing fans with unmatched cricketing enjoyment,” Singh added.
Some IPL franchise owners have gone on to acquire franchises in T20 competitions in the UAE, South Africa, the West Indies, and the United States.
With IPL teams providing lucrative multi-league contracts that most cricket boards cannot match, the Indian league’s expansion may heighten worries about players preferring T20 leagues over international cricket.
Previous History of IPL Sponsership rights
The Tatas obtained the rights from Vivo in 2022 through a sub-licence agreement. The smartphone maker attempted to withdraw from the transaction for a variety of reasons, including, but not limited to, its Chinese links.
Vivo has obtained the rights for a five-year period beginning with the 2018 season, agreeing to pay INR 2199 crore, with an exit value of INR 512 crore in the last year. However, the agreement was finally extended for six years after being delayed for a year due to the pandemic.
When the IPL-Vivo arrangement faced difficulties because to political problems between India and China, the Tata Group came in in 2022 and promised to contribute INR 365 crore each season, with Vivo covering the remaining amount. Following the successful completion of this agreement, the BCCI allowed the Tata Group the option to match any additional bids. The Tatas have agreed to match the Aditya Birla Group’s proposal of INR 2500 crore for a five-year term.
What does ITT clause says?
The ITT has the following clause: “Each bidder that is a corporate body must not be formed in a jurisdiction/territory with which India does not have a friendly relationship. In the event that any corporate(s) that is a shareholder or a proposed shareholder in the Bidder is incorporated in a jurisdiction/territory with which India does not have friendly relations, the Bidder will be required to provide a detailed chart of the shareholding in such Bidder or its ultimate Parent Company, as well as the details of ultimate owners/beneficiaries of all shareholders which are body corporate in such Bidder or its ultimate Parent Company, along with the Bid Document.”
Comments 2