Indian cricket team may lose Nike logo after 14 years

MUMBAI: The Indian cricket team may soon have to let go of kit partner Nike, as the cricket board and the sportswear brand are locked in a tussle over contract renewal.

The tug-of-war has come at a time when the Board of Control for Cricket in India is already under pressure to revisit its sponsorship deals. If the India-China stand-off at Galwan isn’t resolved soon, the BCCI may have to let go of Chinese smartphone maker Vivo as the title sponsor of the Indian Premier League, burning a Rs 440 crore hole in its pocket this year.

However, with Nike, one of the oldest partners of the BCCI, it is in the board’s hands to retain the partnership that dates back to 2006.

“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. “Nike’s business has greatly suffered during the lockdown and it is seeking extension for lost time at a discount. The board may not agree and we may have to come up with tender for the position.”

Team India has had to call off 12 international matches during the lockdown. These included South Africa’s tour to India, and India’s tour to Sri Lanka and Zimbabwe.

Both Nike and the BCCI did not respond to ET’s queries.

As 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,” said a sports marketing expert, who has dealt with the board in the past. “The BCCI should not play hardball now or they will see risk alienating sponsors who are in dire straits due to the economic slump.”

Sports marketing experts feel that this was the right time for the brands to bargain and get the best deals.

“Globally, as live sports have come to a grinding halt, constant discussions have taken place between governing bodies, leagues and franchisees about the lost time for sponsors,” said R Ramakrishnan, a cofounder at sports marketing firm Baseline Ventures. “Preserving and extending these partnerships should be the main objective right now.”

Ramakrishnan said one way of reassuring the sponsors would be to extend the contract equivalent to the amount of lost time or compensate it in the next tenure.