The Board of Control for Cricket in India (BCCI) has recently taken action against the education technology firm Byju’s, by approaching the National Company Law Tribunal (NCLT). This move by BCCI aims to recover dues amounting to approximately Rs 160 crore, which have reportedly been outstanding since the expiry of their sponsorship contract. This contract, initially established in 2019, involved Byju’s as the official jersey sponsor of the Indian cricket team, following the departure of the previous sponsor, OPPO.
The contractual relationship between BCCI and Byju’s, operated by Think & Learn Pvt Ltd, has faced several challenges. The agreement, which was originally for a three-year term, was later extended to last until the end of 2023. Despite opting out midway through the extended period, Byju’s continued the partnership until March 2023. It is noted that the BCCI received regular payments from Byju’s until September 2022.
The dispute over the unpaid dues has been ongoing for some time, with Byju’s expressing intentions to settle the matter. Despite the lack of a formal written contract for the last phase of the sponsorship term, Byju’s has assured its commitment to honor the financial obligations to BCCI, which amount to USD 20 million (approximately Rs 160 crore).
The situation has been further complicated by Byju’s financial challenges. The company has been undergoing significant internal payment clearances, which are expected to aid in settling the outstanding dues with BCCI. Additionally, the company has faced scrutiny from the Enforcement Directorate for allegedly violating foreign funding laws. Moreover, Byju’s had major branding collaborations with BCCI, International Cricket Council (ICC), and FIFA, all set to expire in 2023, but the company has decided not to renew these partnerships.
The next hearing for this case between BCCI and Byju’s is scheduled for 22nd December. Meanwhile, following Byju’s exit, Dream11 has taken over as Team India’s lead sponsor for a three-year term, starting with India’s Test series in West Indies earlier this year, marking the beginning of the World Test Championship 2023-2025 cycle.