Pepsi set to terminate title sponsorship deal with IPL

Pepsi signed an extension deal with IPL in 2012

PepsiCo is all set to discontinue their title sponsorship deal with the Indian Premier League (IPL), citing a lack of transparency and legitimacy attached to the property. According to sources within the BCCI, PepsiCo officials informed them about the termination yesterday.

The multinational company acquired the title rights for IPL in November 2012 for around $ 71 million, which amounts to around Rs 396 crore. The BCCI official said, “Pepsico wanted to withdraw last year itself, however, IPL officials convinced them to stay this year, promising a clean running of show. But, the Lodha Committee verdict was the final nail in the coffin. They were angered by the situation brewing in the Chennai Super Kings dug out. You could see the declining interest from their side as they started to ignore the project unlike the previous season.”

He added, “They repeatedly wanted information about fixing and wanted a firm stance on it. After the spot-fixing scandal broke, they gave us several warnings as well.”

Pepsico extended their contract with IPL in 2012 for five years, till 2017. The official added, “they paid double the amount of 2012 as they were impressed with the visibility their brand was getting. But, now they have made it clear that, they don’t want to be associated with a tainted propery.”

It is believed that IPL Chief Operation Officer, Sundar Raman has been informed of the development, who has immediately activated newly activated BCCI President Shashank Manohar about the matter.

The source added, “Obviously this will be a big blow for us, we will still try and talk things out with Pepsico officials, but the next BCCI meeting will highlight whether we can tackle the issue or not. If we can’t then, we have to look for new sponsors. Apart from this I have nothing more to say.”

In an attempt to revitalise the property, BCCI agreed to share IPL profits with the Sports Ministry. The money will be used to develop the state of other sports in the country. However, considering the visibility IPL has garnered for several brands, finding another title sponsor, shouldn’t be a matter of concern.