MPL and BYJU’S to exit BCCI sponsorship deals
The cricketing body has reportedly asked both sponsors to stay on board till March 31, 2023
Months after Paytm parted ways with BCCI, edtech major BYJU’S and fantasy sports firm MPL have also ended their sponsorship deals for jersey and merchandise respectively, sources privy to the development told e4m.
The development has come at a time when the BCCI is gearing up for the IPL Players Auctions slated to be held on Friday.
The cricketing body has reportedly asked both sponsors to stay on board till March 31, 2023.
e4m reached out to both brands. Their spokespersons declined to comment on the matter.
Interestingly, the edtech major replaced Oppo back in 2019 and extended its agreement with the BCCI in June this year till November 2023, reportedly for $35 million. However, in November this year, the company decided to part ways with BCCI.
While MPL has reportedly asked BCCI to transfer its rights to Kewal Kiran Clothing Limited (KKCL), BYJU’S has not named its replacement. Paytm had transferred its sponsorship rights to Mastercard.
“We had informed the BCCI about our exit much before. It's now the responsibility of the BCCI to find a new sponsor and negotiate the deal amount for the remaining period,” a company official said when asked about the financial and other arrangements after this breakup.
He added that instead of Indian sports, they have decided to focus on global sports property FIFA now. BYJU was the sponsor of the FIFA World Cup 2022 which concluded on Sunday.
It's key to note that BYJU’S ‘business promotion expenses’ stood at Rs 2,250 crore in FY21, in which the company reported a loss of Rs 4,500 crore. Amid losses and funding winters, it has curtailed its marketing and advertising budgets drastically now.
MPL’s reported losses to the tune of Rs 1,120 crore in FY22. Its marketing campaigns and multiple brand ambassadors on board accounted for 43% of the overall cost. This cost grew 81% to Rs 750 crore in FY22, compared to the previous fiscal year.
