In a recent update the Tata Group has become successful in retaining the title rights for the Indian Premier League (IPL).
Tata Group Retained IPL Rights
According to this development, the Tata group has secured the position for the next five years as it extended the deal until 2028.
Under this agreement, the company has given a commitment to contribute INR 500 crore per season.
It seems that Tata had the privilege to match any competitive offer made by another corporate entity, as per the terms outlined in the Invitation To Tender (ITT) document.
So, the group has chosen to match the INR 2500 crore valuation presented by the Aditya Birla Group which is in line with this provision.
The decision was made by the Board of Control for Cricket in India (BCCI) on Friday.
How Did This Happen?
Earlier, Tata had acquired this rights in 2022 after sub-licensing it from Vivo.
Although, Vivo planned to withdraw from the deal due to various reasons, one being its Chinese connections being a factor.
The smartphone maker had secured the rights starting with the 2018 season for an initially planned five-year period.
It had committed to pay INR 2199 crore, with the exit value in the final year set at INR 512 crore.
Eventually, this deal ran for six years, due to the pause for a year during the pandemic.
The Tata Group stepped in during 2022 during the time when the IPL-Vivo deal encountered challenges due to diplomatic tensions between India and China.
Further, the company agreed to contribute INR 365 crore per season at the same time Vivo covering the remaining amount.
Considering the successful conclusion of this arrangement, the BCCI seems to have granted the rights to the Tata Group the right to match any new offers.
Lateron, India’s largest conglomerate has agreed to match the Aditya Birla Group’s bid of INR 2500 crore for a five-year term.
Stringent Conditions For Prospective Bidders
It appears that the BCCI had laid stringent conditions for prospective bidders, according to the media report on December 26.
In an earlier development, BCCI has given their take that they would not entertain bids from Chinese companies or brands.
They seem to be reluctant to be associated with firms from countries that do not have friendly relations with India.
Although, they did not mention the country name.
But, their bad experience with Vivo was obviously taken into consideration.
“Each bidder which is a corporate entity must not be incorporated in a jurisdiction/territory with which India does not have a friendly relation. In the event, any corporate(s) which is a shareholder or a proposed shareholder in the Bidder is incorporated in a jurisdiction/territory with which India does not have friendly relations, the Bidder will be required to provide a detailed chart of the shareholding in such Bidder or it ultimate Parent Company and the details of ultimate owners/beneficiaries of all shareholders which are body corporate in such Bidder or its ultimate Parent Company along with the Bid Documents as a material obligations,” ap per particular clause in the ITT.
Here, the reserve price for the rights was INR 365 crore.
The Tata Group has been paying this price each year for the last two seasons.
