Nike, the official sponsor for the Indian Cricket team jersey, renewed its existing four year deal with BCCI in 2016 when this renowned sports manufacturer renewed its already 10-year association with the Indian cricket team. Nike offered Rs 88 lacs per match along with the minimum guarantee of Rs 6 crore per annum for a total of approximately 220 matches for a period of 4 years.
Keeping this amount aside, the company had also offered 15% royalty and barter products that were around Rs 8 – 10 crores in the deal made with BCCI. But as the world has come to a standstill due to the ongoing COVID pandemic, sports is also one of the worst-hit fields today. All the tournaments and events have been either suspended or postponed.
BCCI to propose new deal with Nike
The Board of Cricket Commission India is now in the middle of coming up with a Request for Proposal (RFP) by next week, as the deal for Indian cricket’s clothing rights with Nike is coming to an end in September. BCCI is restructuring the RFP by tweaking the base prices for the logo rights and thinking to scale it down by 31% after the minimum guarantee clause is kept aside in Nike’s deal.
Reports suggest that BCCI might be looking over to come up with the base price around Rs. 61 lac given the current volatile scenario of the market. The RFP will be further classified into three categories:
- Main logo sponsor with rights of selling the replicas of the Indian cricket team jersey
- Apparel partner with the rights to sell the merchandise
- The combination of both “A” and “B”
BCCI is expected to offer the buying rights for the tenure of three years as the ICC’s Future Tour Program comes to an end in 2023. The RFP can likely be brought out by the coming Tuesday.
Changes in the guidelines
Due to the COVID situation, there are chances that BCCI can make changes to the guidelines given by the ICC. The guidelines state that the main logo sponsor of any national jersey must be a sports kit manufacturer company such as Nike, which is a common practice for the sports community all over the world. However, keeping the current situations in mind, BCCI may tweak the mandatory requirement of “kit manufacturer,” which can allow multiple companies to enter the market. It will also see to it that only the logo of the apparel manufacturer goes on the jersey.
Nike has not yet made any official statement regarding their disinterest in the intent of renewing the deal with BCCI.