The race to secure the coveted title sponsorship of the IPL 2020 intensified the moment VIVO, the Chinese smartphone giant, withdrew its sponsorship amidst growing anti-China sentiment in India. VIVO, which had been the official IPL partner since 2018, was contributing a substantial sum of approximately ₹450 Crores annually for the title rights.

Several prominent names, including JIO, Patanjali, Byju's, Unacademy, and Dream11, were in the fray, eager to associate with what is arguably the most eagerly anticipated and widely watched cricket tournament globally. The suspense ended recently with the BCCI's announcement that Dream11 had emerged as the highest bidder, securing the title sponsorship for IPL 2020 with an offer of around ₹222 Crores for a one-year contract.

UnlistedZone Perspective

The withdrawal of VIVO this year marks a significant setback for both BCCI and the IPL franchises. VIVO's five-year contract, spanning 2018 to 2022, was valued at a colossal ₹2200 Crores - roughly equating to ₹450 Crores per year. Dream11's entry, while timely and pivotal, still represents a 50% reduction in the sponsorship amount compared to VIVO. This development is bound to impact the financial dynamics of the league and its associated entities.

In the unlisted market, shares of Chennai Super Kings (CSK) surged post the announcement of IPL 2020. However, it's crucial to understand that the loss of VIVO as a title sponsor will likely have a noticeable effect on the revenue streams of franchises like CSK for the fiscal year 2020-21.

Despite the reduced sponsorship amount, Dream11's involvement is a vital lifeline for the IPL in these challenging times, ensuring that the cricketing spectacle continues to enthrall millions across the globe. The shift also reflects the dynamic nature of sports sponsorships and the evolving landscape of corporate partnerships in major global sporting events.