Reports: BCCI may suffer a loss of over Rs. 100 crores due to VIVO's exit from IPL 2020 

The BCCI was recently dealt with a significant blow after Chinese smartphone manufacturing giant, VIVO, pulled out as the title sponsors of IPL 2020. VIVO has clarified that it will not sponsor IPL 2020 but it will be back as the title sponsor in 2021.

VIVO had signed a massive five-year contract worth INR 2199 crores in 2018 to earn the title sponsorship rights for IPL. However, following the slump in the economy due to the COVID-19 pandemic and backlash relating to the India-China tensions on social media, VIVO decided to keep the deal on hold and not sponsor IPL 2020.

Talking to Moneycontrol, the Chairman of Mogae Media, Sandeep Goyal, stated that the BCCI might be able to get a sponsor for IPL 2020 at the last minute because of the tournament's popularity. However, he felt that the board might not get the same amount- 440 crores- that VIVO was going to pay.

Why BCCI might not get INR 440 crores from the new title sponsors of IPL 2020

.@Vivo_India's decision to pull out of IPL 2020 sponsorship can be a huge financial setback for the BCCI, explains @27Soumalya.#VIVO #IPL #IPL2020 @IPL #IPL13 #IPLinUAE #BCCI @BCCI https://t.co/jZk8bnHUn3

— moneycontrol (@moneycontrolcom) August 4, 2020

Sandeep Goyal believes that VIVO's exit from IPL 2020 is a massive blow to the BCCI, and even IPL 2020's broadcasters Star India may suffer because of this development. He said:

"BCCI won't be able to earn the Rs 440 crore it was set to get from Vivo from another sponsor in this environment. This development is also a big blow for Star as Vivo will most probably stay away from advertising and other Chinese brands may follow suit considering the present anti-Chinese prevalent in the country right now."

According to a report by Moneycontrol, the BCCI may get a deal worth INR 250-300 crores from the new title sponsors of IPL 2020, which means that the board may suffer a loss of at least INR 100 crores.

IPL 2020 will begin on 19th September in the UAE. It will be intriguing to see which business giant steps up to sponsor the tournament at the last moment.