IPL 2020: After Vivo, associate central sponsor Future Group pulls out

IPL 2020 and sponsorship deals are not going hand in hand. Days after title sponsor Vivo was replaced by Dream 11 at less than half the price of the former, associate central sponsor Future Group has terminated its contract with the money-spinning league.

“Yes, Future Group has pulled out of the IPL sponsorship deal. We are looking for a replacement,” a BCCI source told InsideSport from Dubai.

Reports suggest that though the exit was an expected one owing to the contract coming to an end, Future Group might have had to pay a penalty to the Board of Control for Cricket in India (BCCI) for not renewing the agreement.

“Future Group wanted to exit as it found the costs too steep and re-negotiation did not yield much. However, BCCI would have only agreed to it if they paid the penalty,” a top executive from Future Group told Exchange4media.

All IPL sides will suffer sponsorship losses

Dream 11 made a three-year winning bid, but it is subject to Vivo's return next season. Credits: IPLT20.com

Future Group, which operates in Indian fashion and retail sectors, was associated with the Indian Premier League (IPL) for five years. The website of the IPL even removed its name from the list of official sponsors.

While Vivo had a yearly deal of Rs 440 crore, current title sponsors Dream 11 inked an agreement worth only Rs 222 crore. As per agreements, while half of this amount will go into the BCCI coffers, the other Rs 111 crore will be divided among the eight franchises. The franchises will earn Rs 13.87 crore each this year, as compared to the Rs 27 crore in the Vivo deal.

Teams will also face losses in gate receipts, now that all matches will be played behind closed doors. With most brands reworking deals given the present situation, each IPL franchise is set to incur losses worth Rs 20 crore in sponsorship this year. However, the BCCI is highly unlikely to give in to their demands of compensation.