The Indian Premier League (IPL) is currently in the process of actively pursuing a title sponsor, and the Board of Control for Cricket in India (BCCI) has established rigorous criteria for potential candidates. Significantly, the BCCI has expressed its potential rejection of proposals from Chinese companies or brands, attributing this to its aversion to associating with organizations originating from nations that maintain antagonistic relations with India. Annually, the reserve price for the rights amounts to INR 360 crore.
Although particular nations or brands have not been overtly referenced, the BCCI’s determination is rooted in public disapproval and a poor encounter with Vivo, a smartphone manufacturer based in China. The present circumstance emerged subsequent to the frontier impasse that transpired between China and India. As a result, vivo made the decision to terminate the sponsorship agreement with the Tata Group, thereby relinquishing the rights.
The Invitation to Tender (ITT) document contains the following clause: “Each corporate bidder may not be incorporated in a jurisdiction or territory with which India does not have a friendly relationship.” Should a corporation, whether existing or proposed, be incorporated in the Bidder in a jurisdiction or territory with which India maintains unfriendly relations, the Bidder shall be obligated to furnish a comprehensive shareholding chart for that corporation or its ultimate parent company, as well as information regarding the ultimate owners or beneficiaries of all shareholders who are body corporations in that corporation or its ultimate parent company. This chart must be submitted in addition to the Bid Document.
Beyond wagering and gambling firms, the BCCI is also declining proposals from entities affiliated with fantasy games, sportswear, and cryptocurrency. Companies with direct or indirect ties to wagering and betting firms, fantasy gaming, cryptocurrency trading, cryptocurrency exchange, cryptocurrency tokens, or alcohol products are among the ineligible entities that have been designated by the BCCI. Worth mentioning is a distinct prohibition that applies to companies engaged in the manufacturing of athletic apparel.
“Bidders operating/engaged directly or indirectly in athleisure, performance wear and sportswear,” will not be eligible, says the ITT. Companies operating from the jurisdiction of tax havens will not be allowed, says the ITT and points out countries like Mauritius and British Virgin Islands.
As a result of the expiration of the previous agreement with the Tata Group following the previous season, a new title sponsor became vital. Anticipated sponsorship terms stipulate a duration of five years, culminating in 2028. The reserve price of Rs 360 crore corresponds to the amount paid by the Tata Group during the two seasons prior.
According to information obtained by CricAdvisor, the initial response to the sponsorship request was not encouraging. Interested parties still have the opportunity to acquire the Invitation to Tender (ITT) document and engage in the procurement procedure. Due to the IPL’s esteemed international standing as a preeminent league, it is expected that a reputable firm will enter the partnership at a favorable cost.
Prior to January 8, the ITT document, which is required for participation in the tendering, will be available for purchase. It is anticipated that the tendering process will occur between January 13-14.
Ineligibility of Bidders:
(A) The Bidder, nor any of its Group companies, shall: (i) engage in the provision of betting or gambling services or similar services in India or globally; (ii) offer such services or products to individuals within India; and (iii) hold no ownership or investment interest in any individual engaged in betting or gambling services in India.
(B) Bidder, and any of its Group entities, shall not be engaged in crypto trading, crypto exchange, crypto instrument, or any other business of a similar nature, either directly or indirectly.
(C) A bidder engaged in or operating in multiple brand/project categories, of which one pertains to tobacco or alcohol products, is not authorized to submit a bid for the brand categories including tobacco and alcohol products. The Bidder is granted the opportunity to submit a Bid in relation to any other brand category that is not prohibited.
(D) A bidder who is engaged in fantasy gaming, either directly or indirectly. To provide further clarity, it is not permissible for a bidder, including any of its Group entities, to submit a bid if they are engaged in or operating in the business of fantasy sports gaming.
(E) Bidders who are engaged in the direct or indirect production of athletic wear, performance wear, or athleisure.
(F) It is not permissible for bidders to submit proposals using surrogate brands. Surrogate branding pertains to any endeavor to submit a bid inadvertently on behalf of an alternative entity or individual by means of an intermediary entity or individual. This encompasses the utilization of distinct names, brand identities, or logos, among other things.
