The current contract between the BCCI and Nike was a four-year long deal which began back in 2016. It was further continuation of a 10-year jersey deal between BCCI and Nike.
The Times of India newspaper reported that Nike, before its ongoing deal, offered the BCCI ₹88 lac per match along with a separate minimum guarantee of around ₹6 crore per year for a total of approximately 220 matches over four years.
The company also offered a 15 per cent royalty and barter products worth around Rs 8-10 crore apart from the disclosed deal amount, according to the report in the newspaper.
The BCCI are now charting out a new Request for Proposal (RFP) to be brought out next week. This is where the BCCI expect to take a financial blow as RFP could see the base price for logo rights scale down by almost 31 per cent, keeping the Minimum Guarantee clause in the existing Nike deal aside.
This RFP could be for a period of three years because the International Cricket Council’s (ICC) Future Tours Program (FTP) runs out in the year 2023.
BCCI might break a key ICC rule
In addition to this, the perilous Covid-19 situation all over the globe means that the BCCI might be forced to break a key ICC rule. According to ICC guidelines, the jersey sponsor must essentially be a sports kit manufacturer – which Nike is – but BCCI might be open to break this rule for the highest bidder.
Cricketing action in the country has been at a standstill ever since the Indian cricket team’s series against South Africa was suspended in March. In fact, the IPL has also been postponed indefinitely, with no clarity on when the cash-rich tournament might be held.
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