Vivo, a smartphone company based in China, are faced with a task of finding an Indian partner, who would be ready to settle the money-related issues they will have throughout the remaining period of a deal they made. That is, if the firm decides to end the contract they had. Chinese smartphone maker, Vivo, which is also the company sponsoring the title of the Indian Premier League (IPL), may go for an agreed exit from the league. This action follows the calls and pressure they are receiving from India to put an end to the commercial relationships they have with Chinese producers. And cut all connections they have with companies in China.
The organisation that controls the cricket sport league in the country, known as Board of Control for Cricket in India (BCCI), has come under pressure as of recent, to look into the details of their sponsorship policy for the T20 tournament, including signed contracts with Chinese firms. IPL’s ruling group, which has scheduled to convene in a few days time, will review all the T20 tournament sponsorship deals. Vivo, which took the spot from the PepsiCo firm five years ago, to emerge as IPL’s new title sponsor have a lot on their plate already.
This is so, as they will have to look for a partner or organisation to work alongside in India. The partner in turn, would be ready and capable of bearing the financial burden for the remaining parts of the deal, if the organisation wants to end the deal. According to what an expert in legal issues told the Business Standard in 2015, this would ensure that Vivo finds a means of escape, out of this messy situation, they are in currently. And will in turn, benefit the Board of Control for Cricket in India, as they won’t lose face with their potential sponsors.
However, with everything that is going on right now, if the BCCI decides to end the contract with Vivo, the other choice available for the company is for them to sue for damages in court. Other things that these experts told the news outlet, was that Vivo would make this decision with great care in light of the recent reactions made against China, regarding the global crisis.
They had gotten this title sponsor rights for IPL for Rs 2200, a few years back. The Chinese phone producer brings out Rs 440 crore every year, towards its title sponsorship deal. Other famous Chinese brands connected to IPL, that will still be reviewed during the meeting this week, are Paytm, Dream11, and Swiggy. Swiggy, a food delivery company, which also has investments from various business-men, and investors from China, is a known partner, and sponsor of the league.
Other companies based in China, who are still operating in other countries, may still face the same issues, as a result of their country’s involvement in the current situation that the world is battling with. Most of their international relationships may lead to lots of questions being raised, which will taint their reputation on the world stage.