BCCI took Byju’s to the National Company Law Tribunal (NCLT) for not paying Rs 160 crore in sponsorship money after the contract expired. Byju’s is negotiating with BCCI to resolve the March 2022 sponsorship deal issue. Acquisitions and underfunding have hurt the company.
The Board for Control of Cricket in India (BCCI) has taken already-in-trouble edtech company Byju’s to the NCLT for non-payment of Rs 160 crore sponsorship money following contract expiration.
For almost six months, Byju’s has been trying to collect. “We are in discussions with the BCCI to settle the matter and hope to do so soon,” a company spokeswoman stated. In March 2022, the sponsorship contract expired.
All payments until now were made by Byju’s. BCCI asked the once-most-valuable startup to continue till it found a new backer. Byju’s planned to leave during a funding winter, but BCCI convinced it to stay.
An official report stated that Byju’s extended its jersey sponsorship agreement with the board until November 2023 for $35 million in June. Byju’s sought to end its BCCI arrangement in December, but the board wanted it to last until March 2023 to find a new sponsor for the following fiscal year.
Sources said the dispute involves a Rs 160 crore payment for this period. As an operating creditor, BCCI’s dues would be lower priority than employee payments, insolvency specialists said. However, Byju’s has reportedly told BCCI it wishes to resolve the issue amicably.
After several high-profile acquisitions and a shortage of cash, the company has been struggling for months. To exit some of its purchased enterprises. Since October 2022, it has fired nearly 5,000 workers to decrease costs.
Conclusion
The BCCI has taken Byju’s to the NCLT for non-payment of Rs 160 crore sponsorship money after the contract expired. In March 2022, the sponsorship contract expired. BCCI asked the company to continue until it secured a sponsor. BCCI convinced Byju’s to stay when it wanted to leave. Byju’s renewed its $35 million jersey sponsorship agreement with the board until November 2023 in June. The controversy concerns a Rs 160 crore payment during this period. BCCI’s dues would become a lower priority as an operating creditor, but Byju’s wants to settle amicably. Due to high-profile acquisitions and lack of funding, the company has struggled financially for months. Since October 2022, it has fired nearly 5,000 workers to decrease costs.
