 "Race for IPL title sponsorship wide open")
The Board of Control for Cricket in India (BCCI) will meet in Mumbai on October 18 to decide the fate of PepsiCo's title sponsorship of the Indian Premier League (IPL). Reports on Friday indicated the firm wanted to terminate the contract, saying the league had brought disrepute to the game.
In a joint statement, PepsiCo and BCCI said they were working on a solution. "BCCI and PepsiCo have been in discussions to work out a solution which addresses PepsiCo's concerns. Both parties will share it when ready," went the statement.
Sources in the marketing and media fraternity told Business Standard PepsiCo might walk out if negotiations failed, adding the race for the title sponsorship was wide open. A final announcement in this regard, sources said, was expected to be made on October 18. Sources say BCCI has held informal talks with companies such as Snapdeal, Flipkart and Amazon. Micromax, too, is said to be in the race. These firms weren't available for comment at the time of going to print. In November 2012, PepsiCo had bagged the IPL title sponsorship rights for five years for about Rs 400 crore, which began from April 2013.
PepsiCo had paid about two times more than what the previous sponsor, DLF, had for a five-year sponsorship deal, making it one of the most expensive sports marketing contracts in India. Airtel, the other bidder in the race in 2012, had made a bid of Rs 316 crore. On an annual basis, PepsiCo's investment on IPL is estimated at about Rs 160 crore, according to market sources.
This comprises Rs 80 crore for title sponsorship, Rs 20 crore for team- or franchisee-level sponsorships, Rs 20 crore for beverage and consumer promotions and Rs 40 crore for on-air ads.
