Organising IPL-2020 this time has become a tough nut to crack. Problems are galore. IPL matches were postponed first by the Covid-19 pandemic. The ICC then also took a lot of time in announcing the postponement of the T-20 World Cup. Then came the turn of events adding to the problems of the BCCI. After protests against Chinese sponsors, smartphone company Vivo was dropped as title sponsor of the IPL.Now it looks as if the way to IPL-2020 is full of more thorns.
Swadeshi Jagran Manch (SJM) had asked the organisers to boycott the Chinese companies, linking it to the matter of national honour. As a result, the contract with Chinese firm Vivo worth Rs 2,199 crore had to be cancelled. However, a review of this will be done once again next year keeping in view the issues like national sentiments.
To recall, in retaliation to 20 Indian soldiers laying down their lives as a result of military standoff with China in the Galwan Valley along LAC in eastern Ladakh, a campaign to boycott Chinese companies in India was started.
Now SJM has said that after cancellation of Vivo’s contract, no companies with Chinese share therein will be accepted as IPL sponsor. If pressure is built up on the BCCI with regard to these issues, then it may seal the fate of IPL-2020.
There are companies like Paytm, Dream11 and Byju’s which have funding of Chinese companies. Paytm has 55 per cent shares of Chinese companies, whereas in Dream11, which is also sponsor of IPL, has 20 per cent shares of Chinese firm Tencent. Likewise, the same Chinese Tencent has 15 per cent investment in Byju’s. As a result of all this, BCCI is already on the back-foot.
To make matter worse, several team owners are already displeased over dropping of title sponsor Vivo. And if remaining companies are dropped in the same way, the BCCI will have sleepless nights. Union Home Minister Amit Shah’s son Jai Shah is the BCCI secretary. He is, however, in the grace period after end of his term as secretary. What will be interesting to see is how Jai Shah is able to use his influence and clout to ease out the current pressure and find a way out of this improglio.
Undoubtedly, the income of team owners is to be badly impacted due to IPL being held behind close doors. To add to this, arranging accommodation in the UAE, tickets and getting the tests of players done will be putting more financial burden on them. The BCCI burdened them with the expenses of state associations instead of coming to their rescue.
The Board made it cleaer that the association hosting an IPL match receives Rs 50 lakh from the franchise (owners) and Rs 50 lakh from the BCCI as hosting fee. This comes out to a sum of Rs 8 crore per venue and Rs 634 crore across all frenchises per year. This amount, according to the BCCI, is spent on the infrastructure by different state associations. It means the Board has asked the owners to make payment to the associations as per the rule and agreement being observed for years, leave alone giving any relief to them.
Another problem the Board is having is that it is taking into considertion the proposals of those companies which are rivals of the sponsors companies. Unacademy is one of such companies which are in talks with BCCI for the title sponsorship. This company is direct rival firm of Byju’s. Similarly, Amazon, Patanjali and Tata Group are also vying for the title sponsorship. Fantasy sports platform Dream11 was also in the race but its claim has weakened due to the protest against firms having Chinese shares.
Now coming back to the issue of dropping Chinese companies as sponsors. The question is how can one get rid of Chinese companies which are everywhere. Does Virat Kohli not have a lucrative contract to endorse premium Chinese smarphone iQOO (I Quest On and On)? Do other games not have Chinese money invested in them?
SJM functionaries are arguing that when Indian players sport Tricolour on their helmets how can they ignore the campaign against the Chinese companies. It is said that the BCCI is in contact with the high authority under the government over these issues.
Now the question is whether the government will ignore the demands of the affiliates of the RSS for the BCCI, or it will be able to hammer out some solution. Whatever is the reason, but the problems for the BCCI are manifold after the decision to hold IPL in the UAE. What remains to be seen is how the problem is addressed after the announcement of a new title sponsor on 18 August.
