Does Byju's owe BCCI Rs 160 crore?

It appears that Byju's, the edtech firm, owes the Board of Control for Cricket in India (BCCI) ₹160 crores in connection with a sponsorship deal. The context of this situation goes back to 2017 when Chinese phone maker Oppo initially secured a 5-year sponsorship deal for the Indian cricket team's jersey by paying ₹1,100 crores. However, Oppo wanted to exit the deal prematurely, and Byju's stepped in to take over the contract, promising to pay the remaining amount to BCCI.

Byju's might have seen this as an opportunity to enhance its brand presence, especially considering its status as a Made in India brand and its growing international expansion, including in cricket-loving countries like the UK, Australia, and New Zealand. The edtech firm likely aimed to establish an emotional connection with the Indian audience through sports sponsorship, potentially leading to increased brand loyalty and business.

However, unforeseen challenges arose. Byju's financial accounts for the year ending March 2021 revealed significantly lower revenues and substantial losses compared to projections. This financial setback led Byju's to reconsider its expenses, including the cricket team jersey sponsorship deal. In November 2022, Byju's attempted to cancel the deal, seeking an early exit.

The Board of Control for Cricket in India (BCCI) seems to have taken Byju's to the National Company Law Tribunal (NCLT) over alleged unpaid dues of ₹160 crores. Despite NCLT typically being associated with bankruptcy cases, it is mentioned that it has been used as a platform for debt recovery. In this case, BCCI, as an operational creditor, could be using NCLT to recover the unpaid amount from Byju's.

Byju's, faced with the possibility of NCLT intervention, may be motivated to settle the dues with BCCI promptly to avoid potential consequences, even if it means negotiating a resolution. The outcome of this dispute remains uncertain, but it highlights the complexities that can arise in the business world, especially when it comes to high-profile sponsorship deals and financial challenges.