The BCCI is reportedly set to ask Dream11 to increase their bid for IPL 2021, 2022 season as they are not happy with its initial offer of INR 240 crore for each of the coming two seasons.
KEY HIGHLIGHTS
Dream11 was awarded IPL 2020 title sponsorship for INR 222 crore
Dream11 also submitted bids for IPL 2021 and 2022 seasons at INR 240 crore each
The BCCI is reportedly unhappy with the figures and wants Dream11 to revisit the bids
The Indian Premier League (IPL) Governing Council chairman Brijesh Patel has announced that fantasy sports platform Dream11 has acquired the title sponsorship rights for IPL 2020 season but there are still some details to be finalised. It has now been understood that the Board of Control for Cricket in India (BCCI) is unhappy with the bids made by the brand for the sponsorship of 2021 and 2022 season – in case the suspended sponsor VIVO doesn't return – and wants it to be reworked.
Chinese mobile-maker VIVO has a deal in place with the BCCI that sees the Indian board earn a whopping INR 440 crore each year for the title sponsorship of the T20 league. Following the rising anti-China sentiments in India amid the standoff on the LAC, VIVO withdrew its name, paving way for Dream11 to become the title sponsor for season 13.
The BCCI is also preparing a contingency plan which will see Dream11 continue as the title sponsor for two more seasons but the board isn't willing to settle on the INR 240 crore bid that the brand has offered for the next two seasons. Keeping the COVID-19 pandemic in mind, the two parties have agreed on INR 222 crore for this season, but the BCCI wants a lot more money if Dream11 is to continue as the title rights holder in 2021 and 2022.
"It was always clear that the highest bidder may not get the title rights (it was specified by the BCCI before accepting the Expression of Interest from bidders)," a senior BCCI official, privy to the development, told PTI on conditions of anonymity.
This is primarily the reason why the BCCI hasn't made an official announcement over Dream11 acquiring the title sponsorship rights. The board still wants certain terms to be revisited before the public announcement can be made.
"Having said that, Dream11 has bid the highest and are still favourites to get it, a few issues are still being ironed out before an official announcement comes," he added.
"If it's for only year 2020, then Rs 222 crore works fine. But it was a conditional bid for three years. We still have our deal with Vivo on," he said.
"We haven't closed it as it's a pause. If we are getting Rs 440 crore, why will we settle for Rs 240 crore?" the official asked.
Dream11 is now left with two options - it can either get the sponsorship rights for this season only at a cost of INR 222 crore or increase its bid for the next two seasons that will see the BCCI consider them as an alternative to VIVO.
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