Amid escalating India-China tensions and rising anti-Chinese sentiment, the IPL's decision to retain VIVO, a Chinese mobile manufacturer, as its title sponsor has sparked intense debate. This decision underscores a complex interplay of business interests and national sentiments, particularly in the backdrop of recent governmental actions against Chinese entities.

Despite social media's push against Chinese products and the Indian Government's decisive steps like banning TikTok and sidelining Huawei from BSNL's 4G tender, IPL's governing council opted to continue its association with VIVO. This move raises questions about the balance between economic interests and national sentiments.

Financial Dynamics

The financial stakes in this partnership are significant. In 2018, a landmark deal was struck with Star Sports for broadcasting rights and VIVO for title sponsorship, amounting to approximately ₹16,000 Crores and ₹2,200 Crores respectively over five years (2018-2022). This translates to an annual income of about ₹3,700 Crores for BCCI and IPL, equating to roughly ₹460 Crores per team. After BCCI's 20% cut, each IPL team nets around ₹370 Crores solely from these two sponsors.

UnlistedZone Perspective

The timing of this decision is critical. With just one and a half months before IPL 2020, finding a replacement for VIVO, willing to invest a comparable amount, is a formidable challenge, especially in the current COVID-19 impacted business landscape. For shareholders of unlisted entities like Chennai Super Kings, VIVO's sponsorship is a relief, cushioning potential revenue losses and stabilizing market valuations.

For VIVO, this sponsorship represents a strategic opportunity to recapture its market share, which has waned amid negative public perception. Thus, this decision, while contentious, is a pragmatic move for IPL stakeholders, balancing economic viability with prevailing public sentiments.