BCCI suffers financial crunch as deal with Nike reaches its end


BCCI suffers financial crunch as deal with Nike reaches its end

BCCI Nike

BCCI is pushing its limits to cope up with the finances post-pandemic situation. The deal with Nike is going to end in Sep 2020. The loss is of around 13% on a base price of the deal. This deal b/w Nike and the Board began in 2016 which was the extension of a 10-year jersey deal between both.

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According to the Times of India, before its deal, Nike offered BCCI 88 lakhs per match with a minimum guaranteed amount of rupees 6 crores per year for 220 matches for 4 years.

The company offered benefits of 8-10 crore from this deal.

“They could be looking at the new RFP with around Rs 61 lac as base price but there’s more to it. The RFP is going to be divided into three buckets – a) The main logo sponsor with rights to sell replicas of the Team India jersey; b) Apparel partner with rights to sell fan merchandise; c) Combination of the bucket ‘a’ & bucket ‘b’,” an industry insider told TOI.

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Also Read BCCI to ensure IPL ‘happens’ this year

This RFP is for 3 years.

This worldwide pandemic has created a scenario in which BCCI might have to break a key ICC rule. According to ICC guidelines, the sponsor of the jersey has to be a sports kit manufacturer like Nike, but BCCI might have to break this rule.

“However, in this market derailed by Covid-19, the BCCI may cite the inability of enough contenders to bid and therefore tweak the mandatory requirement of ‘kit manufacturer’, thus allowing multiple players to enter the fray but keep some aesthetics in place – like, for instance, ensuring that only an apparel manufacturer’s logo (not necessarily sports apparel) goes on the jersey,” a BCCI source told the TOI.

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There has been no cricketing action in the country after the Indian and Southafrican series which got suspended in March due to the current situation IPL has been postponed.

Also Read IPL Governing Council will review it’s sponsorship deals with China