The BCCI’s current deal as a “kit partner” with Nike is ending in September. The deal is four years old and is now coming to an end. It was worth Rs 370 crore and Rs 85 lakh per match fee. The deal also included a royalty of Rs 12-15 crore to the board.
“Nike’s business has greatly suffered during the lockdown and it is seeking extension for lost time at a discount. The board may not agree and we may have to come up with tender,” according to a top source in the BCCI.Also Read– “We don’t know where IPL will happen” says Ganguly
The BCCI and Nike are locked in a tug of war over contract renewal. The BCCI is already under pressure to revisit its sponsorship deals. Additionally, if the India-China Galwan Valley dispute is not resolved soon, the BCCI may lose the Chinese smartphone maker Vivo as a sponsor for the Indian Premier League. This would create a loss of around Rs 440 crore.
Nike’s deal with BCCI dates back to 2006.
“Nike’s current deal as ‘kit partner’ of the BCCI is ending in September. It was a four-year deal worth Rs 370 crore, which included Rs 85 lakh per match fee and a royalty of over Rs 30 crore to the board,” said a top source in the BCCI. “Nike’s business has greatly suffered during the lockdown and it is seeking extension for lost time at a discount. The board may not agree and we may have to come up with tender for the position.”
As a result of the lockdown, the Indian Cricket Team had to cancel 12 international matches.
“Knowing the BCCI, I doubt they will agree to a contract extension or even a discount,” said a sports marketing expert, who has dealt with the board in the past. “The BCCI should not play hardball now or they will see risk alienating sponsors who are in dire straits due to the economic slump.”
According to sports marketing experts, this is a time where brands can bargain and get the best deals.
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“Globally, as live sports have come to a grinding halt, constant discussions have taken place between governing bodies, leagues and franchisees about the lost time for sponsors,” said R Ramakrishnan, a cofounder at sports marketing firm Baseline Ventures. “Preserving and extending these partnerships should be the main objective right now.”