The Board of Control for Cricket in India (BCCI) has taken the legal route by approaching the National Company Law Tribunal (NCLT) in Bengaluru to initiate corporate insolvency proceedings against its former sponsor, Byju’s. The allegation revolves around a reported default in the payment of a substantial sum amounting to Rs158 crore.
In a notice issued on November 28, the NCLT has granted Byju’s a two-week period to file a response, with an additional week given to BCCI for a rejoinder, if necessary. The next hearing is scheduled for December 22, marking a significant development in the ongoing dispute between the cricket board and the ed tech major.
The roots of the issue trace back to September 2019 when Byju’s took over the Indian cricket team’s jersey sponsorship from Oppo through a tripartite agreement. The deal involved a hefty commitment, requiring Byju’s to pay BCCI Rs4.61 crore per bilateral match and Rs1.51 crore per match in an ICC event. This move came after Oppo’s original five-year (2017-22) deal with BCCI, valued at Rs1,079 crore, was succeeded by Byju’s.
In a bid to fortify its growing learning app business, Byju’s extended the sponsorship deal in 2022 at a 10% premium. The agreement was set to run until the conclusion of the 2023 ODI World Cup. However, due to business challenges, Byju’s sought the encashment of its contract bank guarantee, amounting to Rs140 crore, as a means to trim heavy marketing expenditures.
Byju’s, a prominent sponsor in the sports arena, had also secured sponsorship with the International Cricket Council (ICC). The ed tech major had further solidified its sports presence by enlisting football icon Lionel Messi as the global ambassador of its social impact arm during the 2022 FIFA World Cup.
Following the financial setback, it took the BCCI some time to secure a new sponsorship slot. The Indian cricket team notably played the World Test Championship final in June without a jersey sponsor. Eventually, in July, Dream11 stepped in, finalizing a three-year deal at a reduced price of Rs358 crore for 150 matches, filling the void left by Byju’s.
As the legal proceedings unfold, the cricketing and corporate worlds will keenly await the developments surrounding this high-profile dispute between BCCI and its former sponsor.
