The Future Group, the retail conglomerate that is currently undergoing a restructuring phase due to the losses incurred during the coronavirus pandemic, has pulled out of the central sponsorship pool as the nature of sponsorships for IPL 2020 continues to undergo changes on a regular basis. Initially, the IPL was under the scanner for VIVO being the principal sponsor but it pulled out this year and Dream 11 will be the title sponsor.
IPL 2020 has been in the news even before a ball was bowled due to the question of principle sponsors. VIVO, the Chinese mobile company who were the title sponsors of the IPL for five years, suspended their sponsorship for this year due to the ongoing tensions between India and China due to the border tensions in Galwan. Following the move, Dream 11 was roped in as the title sponsor for Rs 222 crore, which is a loss of Rs 218 crore per year due to the coronavirus pandemic.
However, there has been one more development in regards to sponsorship in the IPL. The Future Group, a retail conglomerate which is currently undergoing a restructuring phase and has suffered losses due to the coronavirus pandemic, has decided to pull out of the BCCI central sponsorship pool for the IPL. A BCCI official told the media that this development had taken place.
With this, the IPL site is showing only four sponsors, with Dream 11 as the title sponsor followed by Tata Motors (Altroz). PayTM and Ceat Tyres. It is speculated that Unacademy, an educational and technological company which lost the title sponsor race, could replace Future Group. It is reported that an announcement will be made in two or three days and the amount that Unacademy has shelled out for to be in the central sponsorship for three years ir Rs 120-130 crore over that period. With Dream 11 now the title sponsor, one more slot in the central sponsorship is vacant and it is believed that CRED, the credit card company could be the beneficiary.
Debate over sponsorship
The acquisition of the title sponsorship rights by Dream 11 has also not gone down well with many people. The presence of Tencent, a Chinese companyhas irked many. Tencent Holdings Ltd has invested USD 100 million in Dream 11. Tencent is China’s biggest gaming and social media company and it has invested in Dream 11 Fantasy.
The ire towards Dream 11 seems to stem out of the confusion that it is owned by the Chinese. In fact, on closer introspection, Dream XI is owned by Harsh Jain and Bhavit Sheth ever since it’s creation in 2012. All 400 plus employees working in Dream 11 are all Indian and their Indian investors are Kalaari Capital and Multiples Equity.
So, it is true that Tencent has a stake in Dream 11. Whatever profits Dream 11 might get from the title sponsorship as well as through the broadcast might benefit Tencent as well this year.
The anger might probably stem from the fact that TV viewings and live streaming for IPL 2020 is set to shatter all records as the tournament will be played behind without any spectators at the stadium due to the pandemic.
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