Nike to end Indian team sponsorship after sales drop, BCCI to declare tenders soon: Report

The coronavirus pandemic has severely impacted the lives of people across the world. It has brought the world to an unprecedented, perhaps war-like standstill that has affected global share markets as well. All the sporting events have come to a halt, which is why sporting organizations, leagues and teams alike, have suffered huge losses. The financial market has also taken a massive hit due to the pandemic.

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BCCI Nike deal to end in September 2020

In a major development, global apparel giant Nike has decided to undergo a major overhaul as it announced a senior leadership reshuffle. Nike also has plans to sack an undisclosed number of employees as part of a major restructuring that is set to cost them as much as US$250 million. The sportswear giants announced that they are expecting a net loss of jobs across the company and a large number of new executive appointments as part of its latest restructuring exercise amidst the coronavirus pandemic.

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Nike CEO John Donahoe said that they are announcing changes to transform the company faster, accelerate against their biggest growth opportunities and extend their leadership position. Donahoe reckoned that now is the right time to build on Nike’s strengths and elevate a group of experienced, talented leaders who can help drive the next phase of their growth. Nike is aiming to capture the digital space further with the advent of the pandemic.

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The plunging sales worldwide is also most likely to directly impact Nike’s relationship with the Indian cricket team. Nike has been Indian cricket's kit partner for the last 14 years. However, the BCCI Nike deal is now on the brink of ending and it is unlikely that Nike will continue. The current BCCI Nike deal is a four-year one which is set to end September 2020.

According to InsideSport, the sportswear giant is unlikely to renew the BCCI Nike deal at the existing levels. Nike had pledged ₹370 crore to renew the kit sponsorship with the Indian team in 2016. As per the existing BCCI Nike deal, Nike pays ₹87.34 lakh per game currently. The BCCI is all set to soon announce fresh tenders to discover the new kit partners for the Indian cricket at a value which is expected to be far lesser than what Nike is providing at the moment.

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IMAGE COURTESY: BCCI TWITTER