The latest dip in title rights value could hurt the BCCI for long

The first one will be a topic of the day that you might want to know in slightly greater detail and the second one will be a less intense question something that I will give to you to chew up on so let’s get cracking with what else but IPL the IPL is now less than one month away and it is not going to be called the vivo IPL as you may know it’s going to be called dream 11 IPL but the valuation game has changed dramatically we’ll get to that first but first the reality hit that the BCCI has taken that’s because vivo used to pay the BCCI about 440 crore rupees uh the dream 11 is now only going to pay BCCI 222 crore rupees so that’s a slash in value by half how did it come down to that why did it have to come down to that to understand that first the vivo BCCI relationship ended a few days back because with the whole negativity around Chinese investments in India it’s not that the BCCI took a cue from the investment sentiments in the country and decided and asked people to go if they had it that way they would well have asked them to continue with the kind of money that they were paying but their reality also is that vivo also did not see business since in continuing with this deal remember they were paying the BCCI 440 crores so 440 crores this year and another 440 crores that they would have had to pay for next year’s IPL which is now just about six seven months away the regular April may window in 2021 so that comes out to about 900 crore rupees in two IPL’s and then another 100 of advertising so thousand crore rupees in a space of seven months in two IPL’s at a time when there is negativity around purchase of Chinese products amongst the consumers so people could not have recovered that amount so they were looking at an exit this was an opportunity the BCCI could not of course go the legal route because they could not be sending a message that they’re fighting a case to keep by vivo in the contract so there really was a no way that was that relationship was going to continue this year both the parties mutually decided to separate ways at least as far as this year is concerned we don’t know how their future is going to be uh but this meant that the BCCI went about scouting for new sponsors so they approved the reliance and the data of the world and the market response was they told BCCI currently we can’t even pay you 200 rupees forget 440 crores

so the BCCI then issued an expression of interest bids were invited dream 11 was the highest bidder with 222 crores there were only two other bidders buy juice bit for 201 crores in acad unacademy another education tech platform they bid 171 crores so the whole valuation game has changed dramatically let’s also understand why the pcc was under the pressure of keeping this high value deal that was of course a result of this big ambitious bid that vivo had paid made in 2017 and for that we need to go slightly behind as well and to understand this whole journey of how the rights value have evolved over the years regular IPL viewers would know the first edition of the IPL was called DLF IPL 2008 to 2012 DLF were the title sponsors they paid the BCCI 40 crore rupees per addition then enter pepsi Pepsi deals value was doubled but that was over a period of five years that a new investor had come in so that was a fair incremental raise market expert said so pepsi agreed to pay the bcc 80 crore rupees for 2013 2015 editions then they decided to exit with the whole spot fixing scandal and the negativity surrounding the IPL so they made a tactical decision enter vivo  paid the BCCI in 2016 and 17 100 core rupees so that was a fair value deal a fair incremental race and then the big year 2017 when bingo made this bid of 440 crores remember that was a time

A lot of these Chinese smartphone makers were engaged in this war for the indian consumer amongst themselves there was like the vivo and the opposing the xiaomi’s of the world who looked to provide a quality product as an alternative to the indian market to Samsung and apples of the world so that was when they were looking at IPL as a window to the indian market for them they were willing to make a big investments we were not only bid for 440 crores the next highest bid was oppo which was also 280 crore rupees so to come to think of it now the dream 11 bid now does not of course match the vivo bid but even the oppo second highest bid made in 2017 even that is not big match by dream 11 this time around so that is the kind of reality check that has been hit that has hit the BCCI currently so a lot of thinking to do for the BCCI not just because of this edition’s hit that they will take this is of course they can tell the market that this is our extraordinary circumstances we are staging the IPL in the middle of the pandemic this is still a fair value but will the value rights uh improve from this at all that is something that they need to look at and why is it that a lot of the other stakeholders around the IPL also get affected by it and they make a human cry when there is a change in value the franchisees for example everyone takes a hit the whole revenue chain takes a hit so i’ll explain you this in slightly simpler ter 440 crore is what vivo used to pay dream 11 pays 222 crores so that is 222 crores gone 40 percent of that goes to the franchisees so 40 percent of that is divided between the eight franchises which comes down to a hit of about 15 crore rupees that each franchisees will take so the franchise will allow to continue paying the players they will have to incur the operational expenses they will have to incur the travel expenses but their profit will go down by about 15 crores or so because of a change in writes value of the title rights of the IPL so everyone’s taking a hit at this point in time what about the future will web come in again nobody knows we don’t know the fine print of that contract and the exit between vivo and BCCI but vivo could very well tell the BCCI even if they want to come back to the market in the next IPL that look no company at the moment is going to pay you 400 crore rupees no company is going to so let’s reveal renegotiate our deal we will stay in the league but we’ll pay you a lot less and if nobody else is willing to pay that kind of amount the pcc may well have to agree to that so those days of 440 crores are perhaps now gone for BCCI for good at least one does not see that happening in the immediate future now our second cricket question is going to be around the man of the moment the darling of the mass is who else but

Dhoni who recently retired from international cricket now he’s not called captain cool for nothing he’s of course stayed cool through some of the most intense moments that cricket can throw up there were also occasions when Dhoni’s lost his school how many of you remember the last time captain cool lost her school it was in the IPL last year April 11 2019 IPL 12 CSK vs rr match in Jaipur CSK was chasing and ben stokes was bowling ben stokes did not lose his school 2 needed stokes delivered what appeared to be a waste high full toss the on-field empire gave a no ball the batsman at the crees ran two so CSK assumed they got two runs that the batman have taken no ball and still three balls to go but that’s not the way it turned out the square leg umpire bruce oxenford’s signal to the on-field empire that he thought the ball had dipped it wasn’t a no ball and generally the on-field umpire relies upon the views of the square leg empire and makes the decision so the recession was reversed   Dhoni had already stood up from the dugout he was standing in the boundary line he could not control he was fuming and he walked up to the on-field empire gave him a piece of his mind he was wagging his finger it is the angriest you’ll ever see    Dhoni on a cricket field that throw against the empire as it turned out of course CSK that decision stayed but cs can ended up winning that match santa hit the last ball six and that would have helped temper down   Dhoni but it also gave us a glimpse into what   Dhoni was thinking at the time and the kind of pressure that he was feeling remember   Dhoni  was at the time there was a lot of talk about his finishing abilities on the vein he was desperate to win that IPL as it turned out mi CSK did not win the IPL that year they ended up playing the finals played brilliantly that’s army they were called they went on to reach the final but lost the final by one run so it was a tough 2019 for    Dhoni whatever it was let’s hope that that is behind him now and there’s no doubt about the fact that he was an angry   Dhoni through that 2019 this time around now that he’s made this decision it will be relieved of all that pressure and we’ll perhaps get to see the   Dhoni of old the   Dhoni  of four who did not always wait for the last ball to try and hit a six if the ball was there to be hit it did not mind taking the punt and hitting the boundary row perhaps we’ll see that   Dhoni again will wait and watch do send in your comments and stay tuned in and look out for the next article in this cricket

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