Pepsi has no plans to change IPL sponsorship contract

12 Oct,2015

By Ratna Bhushan & Ravi Teja Sharma


PepsiCo has asserted that it’s not seeking to renegotiate the terms of its contract with the Board of Control for Cricket in India (BCCI) for title sponsorship of the Indian Premier League (IPL).


“This is absolutely untrue and there is no talk of bringing down the title sponsorship fee,” a PepsiCo spokesperson said. “Issues raised by PepsiCo are based on our commitment to ethical conduct and the spirit of fair play in sports.” Pepsi was reported to be seeking to pull out of the IPL because spot-fixing accusations have tainted the tournament and fewer teams could be playing next season. There was speculation that the parent may have also been seeking to reduce costs.


The company categorically rejected this. “We are committed to sufficiently invest behind our brands and there is no change in that commitment,” the spokesperson said. Pepsi had committed Rs 396 crore for a five-year period to BCCI for title sponsorship for 2013-17, roughly Rs 80 crore a year and twice what predecessor DLF had paid.


A senior BCCI official said Pepsi and the administrator are trying to sort out the matter amicably. “We can encash the bank guarantee but we are not doing that. They have been good partners in the last few years. We don’t want to spoil the relationship,” he said. A clause in the contract allows BCCI to reassign the title sponsorship, he added.


Meanwhile, there are a handful of contenders willing to take over the role if it’s vacated, said one of the BCCI officials cited above. “The picture will get clearer in the next few days. There are four-five different companies that we are in touch with for the title sponsorship but those companies are yet to get a clearance from the board,” he said.


Source:The Economic Times

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