TATA Group Secure IPL Title Rights Until 2028 | IPL will be sponsored by TATA Group for Next 5 Years
The Tata Group Clinches IPL Title Rights for the Next Five Years
In a grand victory for the Tata Group, they have successfully retained the title rights for the Indian Premier League (IPL), securing their position until 2028 season. This strategic move was finalized by extending the existing deal, with a commitment to contribute INR 500 crore per season. The tournament will bear the prestigious name of TATA IPL until 2028.
Tata’s Right to Match and the Aditya Birla Challenge
The journey to securing these rights involved an intriguing clause in the Invitation To Tender (ITT) document. Tata had the exclusive privilege to match any competitive offer made by another corporate entity. True to their sportsmanship, the Tatas chose to exercise this right, matching the INR 2500 crore valuation presented by the Aditya Birla Group. The Board of Control for Cricket in India (BCCI) made this significant decision, marking a crucial moment in the IPL’s corporate landscape.
A Tale of Succession: From Vivo to Tata
The Tatas had initially entered the IPL title scene in 2022, sub-licensing the rights from Vivo. The smartphone giant, Vivo, had encountered challenges in continuing the deal due to various reasons, including its Chinese connections. Vivo had initially secured the rights for a five-year period starting from the 2018 season, committing to a substantial sum of INR 2199 crore, with an exit value set at INR 512 crore in the final year.
However, the Vivo deal extended beyond the initial five years, with a one-year pause during the pandemic. When diplomatic tensions between India and China affected the IPL-Vivo deal, the Tata Group stepped in as a savior in 2022. In a collaborative effort, Tata agreed to contribute INR 365 crore per season, while Vivo covered the remaining value. This successful alliance earned the Tatas the right to match any new offers, eventually leading to their triumphant match of the Aditya Birla Group’s bid.
Navigating Challenges: BCCI’s Stance on Friendly Relations
The path to securing IPL title rights was not without hurdles. The BCCI set stringent conditions for prospective bidders. Notably, the cricketing board made it clear that bids from Chinese companies or brands would not be entertained. This stance was rooted in the board’s reluctance to be associated with firms from countries that do not share friendly relations with India.
The specific clause in the ITT emphasized the requirement for corporate entities not to be incorporated in jurisdictions with which India does not maintain friendly relations. While the document did not explicitly mention any country, the BCCI’s past experiences with Vivo and the underlying diplomatic tensions were evidently considered.
Financial Dynamics: The INR 365 Crore Reserve Price
The financial aspect of the deal cannot be overlooked. The reserve price for the IPL title rights was set at INR 365 crore, mirroring the amount that the Tata Group had been contributing annually for the previous two seasons. This consistency in financial commitment showcases the Tata Group’s dedication to the IPL and its continued support for the growth and success of the tournament.
Final Word: TATA IPL – A New Chapter
As the Tatas emerge victorious in securing the IPL title rights until 2028, a new chapter unfolds in the league’s history. The blend of corporate strategy, financial commitment, and a cricket-friendly approach has solidified Tata’s position as a key player in the IPL landscape. The cricketing fraternity eagerly anticipates the unfolding of TATA IPL, a tournament that promises to be not just a sporting spectacle but also a proof of the enduring partnerships in the world of cricket.
