Byju's allegedly owes BCCI dues, Paytm wants to sublicense title rights: Report


Mumbai, Jul 22 (IANS): The BCCI seems to be having issues with its two main sponsors as Indian cricket team's jersey sponsor Byju's allegedly owes over Rs 80 crore as dues to the board while Paytm wants to transfer its title rights to a third party.

Byju and the BCCI had agreed on the extension of their partnership until the end of the 2023 ODI World Cup in India at a 10 per cent increment in April. However, the Edtech company has apparently not submitted the required bank guarantee and owes the dues.

The whole sponsorship issue was discussed by the BCCI Apex Council on Thursday, a Cricbuzz report said.

"As of 16.7.2022, Bjyu's following payments have been overdue -- Rs. 22,22,76,000 (Net of TDS) March 2022 as of (previous contract term). Invoice amounting to Rs. 106.49 crore from June-July 2022 (new term) are raised out of which Rs 86.21 crores is due (as on 21 July 2022)," a BCCI note put up before the Apex Council read.

"Bjyu's hasn't furnished the new bank guarantee yet. The company has been insisting on agreeing to the revised payment arrangement i.e. via a third party which shall be mentioned in the contract. BCCI's last communication to Byju's on 12.7.2022 has been to sign the amendment as per the agreed revisions mentioned above," it added.

However, the Edtech company has issued a categorical denial saying money is not due from its end.

"We're extremely proud to be the principal sponsor of the Indian cricket team. No outstanding payment is due. We are extending the contract and payment terms for the same will be as per the new contract," a Bjyu's spokesperson said.

On the other hand, Paytm, the rights holder of title sponsorship has requested the BCCI to assign the title rights to Mastercard.

"Given the COVID situation, during the last two years, Paytm's many businesses have needed to make dynamic changes in their plans and marketing spends. On 1.7.2022, Paytm sent an official request to BCCI for assigning their Indian home cricket title sponsorship rights to a global leader in its category, Mastercard," the BCCI note further read.

"As per the current agreement with Paytm (period 1st Sep 2019 till 31st Mar 2023), there is a provision for assignment of Rights to a third party, however the timeline for such a request was to be made on or before 1st July 2021 for the assignment w.e.f. 1st Sep 2021 with a 5 per cent assignment fee at the same deliverable terms. The timeline for the request to assign is post the due date, however we can make an exception looking at the long standing relationship with Paytm and consider their request favourably," it added.

The online tutorial firm Byju's first came on board back as an sponsor for BCCI in 2019 when mobile manufacturer Oppo transferred the sponsorship rights to them while Paytm had extended its association with the board as the title sponsor for international and domestic cricket matches in India by four years in August of the same year.

 

  

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Title: Byju's allegedly owes BCCI dues, Paytm wants to sublicense title rights: Report



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