Pepsi returns as BCCI sponsor in four-year deal
Pepsi, which had backed out as the official sponsor for the BCCI-backed IPL in October 2015, returned as its offical associate sponsor, signing a four-year deal. The deal grants Pepsi the benefits of prominence in on-ground and in-stadia branding and advertising for 80 matches across all three formats of the IPL. Two other official associate sponsors will be announced over the next 7-10 days.
As realty firm DLF ended its five-year long association with the IPL, Pepsi was named the official title sponsor of the BCCI backed IPL, as it outbid its competition, Airtel, for the rights. Pepsi bough the official title sponsorship rights for a massive Rs.396.8 crore, beating Airtel's Rs.316 crore. Pepsi would hold the title sponsorship rights for five years, ending in 2017.
Pepsi's acquisition of the title sponsorship rights of the IPL for Rs.396.8 crore was almost double that of its predecessor. Realty firm DLF which was IPL title sponsors from 2008-2012, had only paid Rs.200 crore for the rights.
In spite of having recently signed a five-year long deal with BCCI for the title sponsorship of the IPL, Pepsi considered withdrawing from the IPL. Following the arrest of Sreesanth and two of his Rajasthan Royals teammates on charges of spot-fixing, and the withdrawal of Pune Warriors India from the IPL, Pepsi said it was concerned that its brand image would get affected.
Pepsi announced that it would rethink its sponsorship deal for the IPL if the controversies surrounding the tournament was not resolved soon.. Indra Nooyi, Chairperson and CEO of Pepsi, said, "We are a highly ethical and principled organisation. So we want to associate with organisations that are principled and ethical. We hope the current problems of IPL are short term and they are addressed."
Despite its recent comment on reconsidering the IPL sponsorship deal, the Chairperson and CEO of Pepsi, Indra Nooyi, said that Pepsi would look "at the positives" and continue its sponsorship of the IPL. In a statement, Nooyi said, "Now if IPL went through controversies, it's unfortunate. Nobody likes any sport tainted at all...but then again it is being addressed."
Beverage giant Pepsi sent a notice to the BCCI expressing its intention to back away of the official title sponsor of the IPL. Stating the 2013 IPL spot-fixing scandal as a reason for its withdrawal, the notice read, "BCCI failed to act in a fair and transparent manner to prevent or take corrective measures in respect of such sporting frauds".
Pepsi India CEO, D Shivakumar said, "We clearly mentioned that time that we are not parting away with BCCI or cricket," referring to their withdrawal from the IPL. Pepsi, which has been associated with Indian cricket for over 25 years, "continue[s] to be involved with IPL with some other franchise and that continues", he said. Shivakumar did not comment on Pepsi's dissociation with IPL.
