Pepsi considers pulling out of IPL

New Delhi, October 9

Beverage giant PepsiCo may withdraw its sponsorship to the cash rich but controversial Indian Premier League.

Increasingly uncomfortable with the growing disrepute that controversies surrounding the tournament have brought it, the international conglomeraten is believed to have conveyed its concerns to the BCCI.

"BCCI and PepsiCo have had a longstanding cordial relationship and have been in discussions to work out a solution which addresses PepsiCo's concerns. Both parties will share it when ready," a brief joint statement issued by PepsiCo and BCCI said.

PepsiCo’s $71.77 million (Rs 396 crore) sponsorship for the tournament ends in 2017.

BCCI, however, appears unwilling to wait until negotiations end: sources claim the board is already scrambling to get buyers for Pepsi’s rights to the tournament. It also denies that the conglomerate’s possible pull out had anything to do with the tournament’s dwindling credibility in the sporting world.   

"They have shown a willingness to move out of the deal from this season because of their own interests and not because of disrepute. So they may not continue as the main sponsor," a senior BCCI source said.

"Because we have the deal with them, we are not bothering them. We have a bank guarantee with us and can consider action, but we are not doing it. Whosoever will get the rights, we will help get him that guarantee transferred from Pepsi," the source said.

However, league chairman Rajeev Shukla said the board was talking to Pepsi Co over what he claims was "not a big issue". "We are in talks with other sponsors as well, so the title deal with Pepsi is not that big an issue. They have certain points and we are going to settle them amicably in the next meeting," Shukla said.

"The company has been a very good partner all this while and we do not want to disturb our relationship with them. Whatever is going to happen will happen smoothly," he added.

It was the 2013 spot fixing controversy and the subsequent penalty that the Lodha Commission levied that is believed to have made the beverage giant reconsider their contract.

The commission, appointed by the Supreme Court in January, had suspended two teams — the Chennai Super Kings and Rajasthan Royals — for two years while two people associated with the teams — Gurunath Meiyappan, principal of the Chennai team, and Raj Kundra, co-owner of Rajasthan Royals — were banned from commercial cricket activities for life. 

The BCCI will discuss the conglomerate’s possible pull out in the next meeting on October 18. Previously, real estate firm DLF held the title rights for the tournament for Rs 250 crore. — PTI

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