Chinese mobile giants Vivo retained the title sponsorship rights of the Indian Premier League for the next five years for a mind-boggling Rs 2,199 crore. This is a whopping 455% increase from the previous contract.
Vivo first bagged the title sponsorship in October 2015 for two editions from PepsiCo India, who had ended its five-year contract, worth INR 396 crore, two years ahead of schedule.
Pepsi had bought the title rights from the 2013 season onwards after IPL's first-ever title rights deal worth Rs 200 crore for five years, signed in 2008 with real estate company DLF, ended.
The Board of Control for Cricket in India (BCCI) had last month invited bids for the title sponsorship of the cash-rich and glitzy event for the period between August 1, 2017, and July 31, 2022.
The base price for this cycle of title rights was set at 15% more than what Vivo paid last year, and the company edged out the only other bidder Oppo, another smartphone manufacturer. Two other companies, Xiaomi and Intex, participated but did not go through with the bid.
VIVO had held the title rights for the 2016 and 2017 seasons. That deal was at an estimated Rs 100 crore per year. The annual break-up of the current deal will work out a nearly Rs 440 crore per year.
Speaking on the development, IPL Chairman Rajeev Shukla said to PTI, "We are delighted to have Vivo joining us once again as the title sponsor for IPL for next five years. The association with Vivo has been great for the past two seasons, and I am sure they will continue to make it bigger and better."
What started as Rs 40 crore per year deal with DLF back in 2008, has culminated in Rs 440 crore deal this year.
"Vivo as a brand has carved its niche and legacy in the market. We are extremely glad to have Vivo as the title sponsor,” BCCI Acting President CK Khanna said.