Tata Sons has successfully retained the title sponsorship rights for the Indian Premier League (IPL) until 2028.
The decision comes after Tata Sons matched Aditya Birla Group’s (ABG) bid, solidifying their position as the IPL’s title sponsor for the next five years.
The Board of Control for Cricket in India (BCCI) officially confirmed this extension, outlining a commitment by Tata Sons to contribute Rs 500 crore per season.
Background and Previous Stint:
Tata Sons had first assumed the mantle of the IPL’s title sponsor in 2022, stepping in after Vivo’s withdrawal amidst geopolitical tensions.
The initial two-year deal saw Tata Sons pay Rs 670 crore for the title sponsorship rights, marking their entry into the world of T20 cricket.
Under the terms outlined in the Invitation To Tender (ITT) document, Tata Sons held the privilege to match any competitive offer made by another corporate entity.
In exercising this provision, the group chose to match the Rs 2500 crore valuation presented by the Aditya Birla Group.
This strategic move showcases Tata’s commitment to the IPL and its determination to play a central role in the tournament’s future.
Deal Valuation and Industry Dynamics:
The undisclosed BCCI official, speaking on condition of anonymity, revealed that the five-year deal is worth Rs 2500 crore.
Tata Sons’ decision to match the bid presented by ABG has positioned them as the frontrunners in the race for IPL title sponsorship.
The subdued interest in the bidding process, with only ABG and Tata Sons in contention, has been attributed to the right-to-match clause, which introduced a level of complexity that deterred potential bidders.
Future Plans and Increased Match Format:
Looking ahead, the IPL is set to undergo a structural change, with the BCCI planning to raise the number of matches to 84 in 2025 and 2026, and 94 in 2027, compared to the current format of 74 matches.
This expansion adds a new layer of consideration for the title sponsor, as the sponsorship fee will be adjusted based on the bid amount for the expanded match format.
Tata Sons’ retention of the IPL title sponsorship underscores their commitment to the tournament and the strategic importance they place on their association with one of the most prominent T20 leagues globally.
The IPL’s legacy of title sponsors, including DLF, Pepsi, Vivo, and Dream11, highlights the ever-increasing value associated with these rights.