IPL Governing Council to review various Chinese sponsorship deals

Indian Premier League's Governing Council on Friday evening announced that it has decided to meet and review the sponsorship deals of the tournament. This announcement comes in the aftermath of the India-China border skirmish.

The chain of events at the LAC (Line of Actual Control) culminated in the martyrdom of 20 brave soldiers. Over the last couple of days, people on social media have been vocal about putting a ban on Chinese products in India. 

Some Chinese companies have invested in the Indian Premier League. The title sponsorship rights is held by VIVO Communication Technology Co. Ltd., a Chinese mobile phone manufacturer - for which people are demanding the contract be invoked. Like the title sponsor VIVO, Delhi-based Indian e-commerce payment system and digital wallet company, PayTM who happens to be the umpire sponsor of the tournament is owned by One 97 Communications Pvt. Ltd. but has Alibaba group, a Chinese e-commerce company as one of its investors.

On Friday evening, the IPL announced through its official Twitter handle that they would be reviewing various sponsorship deals of the tournament in a meeting that has been scheduled for next week.

"Taking note of the border skirmish that resulted in the martyrdom of our brave jawans, the IPL Governing Council has convened a meeting next week to review IPL’s various sponsorship deals," the official Twitter handle of IPL tweeted.

Taking note of the border skirmish that resulted in the martyrdom of our brave jawans, the IPL Governing Council has convened a meeting next week to review IPL’s various sponsorship deals ??

— IndianPremierLeague (@IPL) June 19, 2020

In December last year, the Chinese company renewed the title sponsorship rights for the IPL. VIVO and IPL have a five-year agreement worth INR 2,199 crores-which gives approximately INR 440 crores annually to the tournament.

Speaking to PTI, Treasurer of the Board of Control for Cricket in India, Arun Dhumal said that by honouring this deal, the Indian economy is benefitted.

"BCCI has created an infrastructure of thousands of crores in the country. If a Chinese company is earning money from the Indian consumer and paying it to the BCCI, which in turn is giving a 40 per cent tax to the government, then I believe we are helping the Indian cause," Treasurer Arun Dhumal had said.

He also said that the Board would adhere to what the government has to say and would be willing to put forward the best interests of the country ahead of any such sponsorship deals.

"If there is a directive from the government that no Chinese product or services will be allowed in the country, BCCI will be happy to adhere to it. But in the absence of any such order and if that money is being used in India, and for the betterment of Indian cricket, then I don't see any issue with it," he added.