Team India may part ways with Nike as their kit sponsor after 14 years
Nike's current four-year deal with BCCI is set to end in September.
Published - Jun 29, 2020 12:50 pm | Updated - Jun 29, 2020 12:50 pm
The increasing border tensions between India and China have led to Indians boycotting Chinese products and their investments. Amid the tussle, Vivo, a Chinese technology company, which is the sponsor of the IPL, has also been bashed for its investment and operation across the country.
The BCCI might part ways with Vivo if the government instructs it to do so and that will lead to the board incurring a staggering loss of Rs 440 crore. To make things worse, Nike’s association with the Indian board is also in jeopardy. Team India might not sport the Nike logo on their apparel as the sportswear brand is currently locked in a tussle over a contract renewal.
Nike’s current four-year deal with BCCI is set to end in September. The cash-rich agreement was a staggering Rs 370 crore deal which included Rs 85 lakh per match fee.
BCCI was also forced to cancel their tour to Sri Lanka and Zimbabwe
“Nike’s current deal as ‘kit partner’ of the BCCI is ending in September. It was a four-year deal worth Rs 370 crore, which included Rs 85 lakh per match fee and a royalty of over Rs 30 crore to the board,” said a top source in the BCCI, as quoted by the Economic Times.
“Nike’s business has greatly suffered during the lockdown and it is seeking an extension for lost time at a discount. The board may not agree and we may have to come up with tender for the position,” he added.
India haven’t braced the field in the past few months due to COVID-19 outbreak. Their last assignment was against South Africa, which was eventually called off after the first ODI at Dharamsala was washed due to rain. Subsequently, BCCI was also forced to cancel their tour to Sri Lanka and Zimbabwe.
The much-awaited IPL 2020 was also postponed in the wake of the pandemic. But according to reports, the BCCI is trying its best to host the tournament in the latter stage of the year in order to recover the anticipated losses.
Meanwhile, as a part of the deal, Nike has been supplying apparels, footwear and other merchandise to team India free of cost.
“Knowing the BCCI, I doubt they will agree to a contract extension or even a discount. The BCCI should not play hardball now or they will see risk alienating sponsors who are in dire straits due to the economic slump,” said a sports marketing expert who has dealt with the board in the past.