BCCI sets base price for IPL title sponsorship rights, perplexing prospective bidders

BCCI sets base price for IPL title sponsorship rights, perplexing prospective bidders

The Board of Control for Cricket in India (BCCI) has set the base price for the Indian Premier League (IPL) title sponsorship rights at ₹350 crore per year for 74 matches or ₹1,750 crore for five years. However, the cricket board’s decision to grant Tata Sons the right to match the highest bid for IPL title sponsorship rights has perplexed prospective bidders, said people familiar with the situation. The BCCI has also advised bidders to bid for 84 and 94 matches at ₹375 crore and ₹400 crore base price, respectively. The BCCI plans to raise the number of matches to 84 in 2025 and 2026 and 94 in 2027. However, executives involved in formulating the strategy for the IPL title sponsorship bids for leading companies feel the right-to-match provision will benefit Tata Sons who paid ₹670 crore over two years for the IPL title sponsorship rights. On December 12, the BCCI released a tender for title sponsor rights for the IPL seasons 2024-2028. The tender will be available for purchase until January 8. However, insiders noted that another way to look at the right-to-match clause is that the BCCI intends to do price discovery as Tata Sons might not be inclined to pay more than the base price. BCCI is obligated to inform Tata of the highest bid amount received for title sponsorship rights as per the previous title sponsor agreement. Tata can match the highest financial bid within five working days of the opening of financial bids and notify the BCCI of its intent. If Tata decides to exercise the right to match the highest bid, the BCCI will have to grant the IPL title sponsorship rights to it. A top executive at a leading sports marketing firm said the ability to match the highest bid gives Tata Sons an unfair advantage over competitors. “What’s the point of bidding for the sponsorship deal if Tata eventually decides to match the highest bid?” the executive asked.

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TIS Staff

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