The Novel Corona Virus Pandemic has affected the World in more than one ways for the last 4 months. Along with the severe medical emergencies, the world has witnessed a never before economic slowdown with World Economies crashing down to bits.
Every economic activity has suffered a huge setback in this period and even the sponsors in sports world are now backing away from the deals. According to the latest reports, ‘Nike’- one of the famed sportswear brands, which sponsors World’s richest Cricket board – BCCI might end its deal in September this year.
‘Nike’ is one of the oldest sponsors of Indian Cricket Team. It entered in the partnership with the Indian cricket board back in 2006. However, the Economic slowdown due to CoViD-19 has forced both BCCI and Nike to involve in a contract renewal war and it’s highly likely that BCCI might let go its one of the oldest partners.
BCCI is already under severe pressure for its sponsorship deals with Chinese Mobile Company-Vivo ever since the boycott China voices have gotten stronger in the country. If these deals are cancelled, BCCI might lose huge chunk of money as Nike has been the prime supplier of all the sports kits to team India free of cost.
“Nike’s current deal as ‘kit partner’ of the BCCI is ending in September. It was a four-year deal worth Rs 370 crore, which included Rs 85 lakh per match fee and a royalty of over Rs 30 crore to the board. Nike’s business has greatly suffered during the lockdown and it is seeking extension for lost time at a discount. The board may not agree and we may have to come up with tender for the position,” said a top source in the BCCI, as quoted by ET.
“Knowing the BCCI, I doubt they will agree to a contract extension or even a discount. The BCCI should not play hardball now or they will see risk alienating sponsors who are in dire straits due to the economic slump,” said a sports marketing expert, who has dealt with the board in the past, as quoted by ET.
Meanwhile, from a company’s perspective, a co-founder at sports marketing firm Baseline Ventures, R Ramakrishnan has stated that this is the best time for the companies to get bargain deals with the bigger sports associations. Ramakrishnan also advised that the Sports bodies should look to help the sponsors in such crisis time and extend their contract periods equivalent to the lost time to make up for the losses.
“Globally, as live sports have come to a grinding halt, constant discussions have taken place between governing bodies, leagues and franchisees about the lost time for sponsors. Preserving and extending these partnerships should be the main objective right now,” Ramakrishnan told ET.