Brands to opt for short-term contracts

ENDORSEMENT CONTRACTS ON A NEW PITCH

The Board of Control for Cricket in India's (BCCI) directive is expected to spawn short-term and more expensive endorsement contracts as players will hike their rates to adjust for the reduction in the number of contracts they can sign.

Sanjay Kacker of Percept D'Mark, said: "If the BCCI actually limits the players from endorsing not more than three brands, long-term contracts (3-5 years) will end. Now brands will prefer to enter into short-term contracts (six months) and renew only if cricketers continue to perform."

Also, only companies with deep-pockets will be able to afford cricketers for brand promotions, he said. Percept D'Mark manages Yuvraj Singh, Sourav Ganguly and Sreesanth.

This will put brands such as Pepsi, Reebok, Hero Honda and Indian Oil in a spot as each of them has more than two players endorsing the brands.

"Another sports agent said "If a company also starts weeding out players and terminating contracts, there will obviously be litigation from players' side as well."

A Percept executive said the move is likely to deliver more value for money to brands that cricketers associate with. On the other hand, cricketers might not earn less as they may command a further premium because of their restricted access.

Ravi Naware, CEO, ITC Foods, which recently roped in ace cricketer Sachin Tendulkar to co-create a nutritional foods brand Sachin's Fit Kit, said that it would be premature to comment on the BCCI decision without studying it carefully.