Just when it seemed that all the troubles for BCCI finally came to an end, retail conglomerate Future Group decided to pull of of the IPL 2020 sponsorship deal just 26 days away from the tournament. As per reports, Future Group has decided to end their contract early with the BCCI due to heavy losses it incurred due to Coronavirus (Covid-19) pandemic.
“Yes, Future Group has pulled out of IPL central sponsorship and that’s the reason their logo has been removed from the IPL website. At this point of time, I won’t like to elaborate on the development,” a BCCI veteran confirmed the development to PTI.
Earlier this month, fantasy gaming platform Dream11 replaced Chinese company Vivo for Rs 222 crore as the new Title Sponsor of the 2020 edition of the IPL, outbidding other strong contenders like Tata Sons and Unacademy.
IPL franchises are already not very happy due to financial loss they suffered this year after Vivo's exit as the Chinese mobile manufacturer used to pay Rs 440 per year early while Dream11 struck the deal for this year's title sponsorship for just 222 crores. As per the rules, the total sponsorship money will be shared equally or 50 percent between the BCCI and franchises.
In that case, every franchise will earn Rs 13.87 crore this year compared to Rs 27 they use to earn before Vivo's exit.
“Future Group has been in bad shape since the start of Covid-19. It was bound to happen that they wouldn’t have been able to spend Rs 40 crore to be a part of BCCI’s central sponsorship pool. Hence, the pull-out is not a surprise,” the source said.
“Right now, the Future Group is going through a restructuring phase and there are talks with multi-national conglomerates about its potential takeover in the next few weeks. So sponsoring sporting events at the moment wasn’t top priority for Future Group,” he added.