Indian cricketer’s biggest sponsor brands incur heavy losses

Vivo IPL losses,Vivo IPL sponsorship,IPL Sponsorships,Board of Control for Cricket in India,IPL title sponsorship
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Vivo and Oppo are the two highest-paying sponsors of the Board of Control for Cricket in India for their respective Indian Premier League title and Team India jersey deals.

The cricket commitments also make the two Chinese BBK Electronics group-owned smartphone majors the brands with highest single sponsorship commitments in India. While the cricket has given a major push to the Vivo and Oppo business in India, the two sister concerns still have reportedly incurred heavy losses in their India business.

Oppo and Vivo have posted a combined loss of ₹ 1,225  crore during the first half of the current financial year, according to an Economic Times report. In spite of a 20% increase in their overall business volume, Vivo and Oppo have failed to repeat their combined performance of ₹150 crore profit during the same period in the 2017-18 financial year.

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The companies’ commitment towards cricket exceeds their ₹482 crore combined loss during the last financial year. The two companies aggregate commitment towards cricket alone surpasses 643 crores. Add to this an approximate ₹60 crore every year for Vivo’s five-year ₹275-300 crore title sponsorship deal with the Pro Kabaddi league.

Vivo had extended their IPL title sponsorship in a jaw-dropping ₹2,199 crore , five-year deal in June last year. The company had been paying around ₹95 crore for the same rights in each of the previous two sea seasons of the league and BCCI had fixed the base price for renewal at ₹120 crore per annum.

Oppo in March 2017 had acquired the logo right for the Team India official jersey for ₹ 1,079 in a five-year deal.

Vivo has reportedly attributed the loss to the currency fluctuations and enhance investments to strengthen manufacturing. The market leader in the ₹20,000-30,000 has also announced to make a further investment of ₹4,000 crore during the second phase of Make in India movement.

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