IPL 2020: Associate central sponsor Future Group pulls out of the tournament

IPL 2020: Associate central sponsor Future Group pulls out of the tournament

The IPL franchises are already suffering huge losses this year and the pulling out of Future Group has only put them in troubled waters

IPL 2018 BCCI Jammu and Kashmir
IPL trophy. (Photo Source: Twitter)

The Board of Control for Cricket in India (BCCI) is facing constant obstacles ahead of the 13th edition of the Indian Premier League (IPL). Vivo, the title sponsor, pulled out earlier this month only to be replaced by Dream11, the fantasy gaming platform, at half the price. Now, the associate central sponsor, Future Group, has terminated it contract with the cash-rich league.

IPL is only 26 days away from getting underway now and the sponsorship issues are putting the board in trouble time and again. It has already incurred losses with the title sponsors. Vivo used to pay Rs 440 crore yearly while Dream11 has inked the deal for this edition worth Rs 222 crore.

A BCCI source confirmed the news of Future Group pulling out to Insidesport. “Yes, Future Group has pulled out of the IPL sponsorship deal. We are looking for a replacement,” he said. The contract between BCCI and Future Group was coming to an end anyways but the early exit meant that the company will have to pay the penalty to the board.

“Future Group wanted to exit as it found the costs too steep and re-negotiation did not yield much. However, BCCI would have only agreed to it if they paid the penalty,” a top executive from Future Group said.

IPL franchises to suffer huge sponsorship losses

The IPL franchises are already suffering huge losses this year and the pulling out of Future Group has only put them in troubled waters. The company was associated with the IPL for five years and after it pulled out, the tournament’s official website has also removed its name from official sponsors’ list.

According to the rules, half of the sponsorship money, Rs 111 crore, will go to BCCI while the rest of the amount will be divided among the franchises. Every team, in that case, will earn Rs 13.87 crore this year contrary to Rs 27 crore they used to get with Vivo in the mix.

The franchises will also miss the gate money this year with the matches being played behind closed doors. Moreover, most of the brands are reworking their deals due to the pandemic situation where the franchises are set to incur losses Rs 20 crore each.