Here's why BCCI might find it tough in boycotting Chinese sponsorship deals

The recent political tension between India and China has created a situation where Indian citizens are boycotting Chinese products and services all across the country. Many Indian traders have refused to sell Chinese products while people are looking for Indian alternatives to Chinese apps. All this started after the Chinese Army launched an attack in Indian territory, killing 20 soldiers.

Amidst all this, the Board of Control for Cricket in India (BCCI) has announced that it will review its sponsorship deals. Going by the word of mouth of some people who are experts in the industry, terminating existing contracts, or ignoring large sums of money from the Chinese will be difficult for the Indian board.

“Chinese are big investors in India and ignoring that kind of money will be difficult for the BCCI”

China-based companies have invested a huge sum of money in India, not only in Indian cricket. Whether that is smartphones, online gaming, or other financial sectors, the Chinese have stakes of sponsorship deals with several Indian brands. If a brand decides to terminate the partnership with any Chinese brand, then the Chinese could sue the other brand in the court and seek damages.

The biggest problem for BCCI is also not Chinese companies but their investors. Many of the sponsors have their investors from a Chinese. For example, Byju’s, PayTM, Vivo, or Dream11, all the companies have investors who are Chinese. This is why the situation of boycotting China is not entirely feasible.

The biggest concern for BCCI and their citizens’ loud of boycotting China is related to Vivo. The company spends INR 440 crore annually as the title sponsors of the Indian Premier League. With the coronavirus pandemic, the situation is not right with the financial state of cricket, it won’t be in BCCI’s best interest to cut ties with a company that is providing such a financial boost.

A professional in advertising and sponsorships, Sam Balsara had recently said to Mumbai Mirror, “As long as the government is allowing Chinese products to be manufactured in India, they will have a right to advertise.”

“Chinese are big investors in India and ignoring that kind of money will be difficult for the BCCI. I think the BCCI will wait to see how consumers are reacting to the boycott- China call,” a Bangalore based professional said.