IPL 2020 has been faced with uphill task to shift the tournament to UAE with recent struggles with the title sponsorship as VIVO backed out as the title sponsor and Dream 11 is to be the title sponsor this season for half the sum amount of money that of previous deal with VIVO.
IPL is only 26 days away as it is set to return on foreign soil on 19th September but the sponsorship issues are putting the BCCI and GC in trouble time and again, the revenue and finances has been hit hard as the previous sponsor used to pay 440 crores while the current title sponsor is only paying 220 crores a half of the previous amount, this recent pull out of Future Group comes as huge blow for the tournament.
A BCCI source confirmed the news of Future Group pulling out of IPL, “Yes, Future Group has pulled out of the IPL sponsorship deal. We are looking for a replacement,” he said. The contract between BCCI and Future Group was coming to an end anyways but the early exit meant that the company will have to pay the penalty to the board”.
“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 said”.
The IPL franchises are already suffering heavy losses and pull out of the Future Group only make the current situation a troubled one, According to the rules half of the sponsorship money went to BCCI and the rest was equally distributed among the Franchise in that case each team will earn 12.87 crore this year contrary to the 27 crore they used to get while VIVO was in play, The franchise are incurring heavy losses up to 20 crores and are facing hard times due to Pandemic.
