BCCI and PepsiCo Work to Resolve IPL Concerns Amid Corruption Allegations

Strategic Insights -

The Board of Control for Cricket in India (BCCI) and PepsiCo are engaged in discussions to address the concerns of the global food and beverage giant, which has reportedly expressed a desire to end its title sponsorship of the Indian Premier League (IPL) due to corruption allegations. The IPL, with a brand value of $3.5 billion, has been marred by scandals and corruption allegations for years, including a recent panel recommendation to suspend two franchise owners for two years. PepsiCo, which holds the IPL title sponsorship rights until 2017, has cited concerns that have brought the game into "disrepute."

Key Takeaways:

  • The BCCI and PepsiCo have a longstanding cordial relationship, and both parties are working to address PepsiCo's concerns regarding the IPL's corruption allegations.
  • The panel established by India's Supreme Court recommended suspending the franchise owners of two teams, including India Cements, owned by the current chairman of the International Cricket Council, Narayanswamy Srinivasan's son-in-law, Gurunath Meiyappan.
  • Around 90% of the advertisement money targeted at sports in India goes to cricket, highlighting the significant relevance of cricket in the country.
  • Three players, S. Sreesanth, Ajit Chandila, and Ankeet Chavan, were charged with spot-fixing, while Gurunath Meiyappan and Raj Kundra were banned for life from the sport for betting on matches and passing information to bookmakers.
  • The IPL chairman, Rajeev Shukla, stated that talks between the BCCI and PepsiCo are going on in a "very cordial relationship," and he does not foresee any problems in resolving the concerns.
  • PepsiCo had paid $61.31 million for the IPL title sponsorship rights in 2013, effectively doubling the amount paid by DLF, India's biggest listed property developer, from 2008-12.
  • The joint statement from the BCCI and PepsiCo gave no further details on the specific issues at stake, but both parties are committed to resolving the matter amicably.

Statistics:

  • The BCCI and PepsiCo have been in discussions to address PepsiCo's concerns, with the discussions being described as "cordial" and "long-standing".
  • The Indian Premier League (IPL) brand value is estimated to be $3.5 billion.
  • Around 90% of the advertisement money targeted at sports in India goes to cricket.
  • Three players, S. Sreesanth, Ajit Chandila, and Ankeet Chavan, were charged with spot-fixing, while Gurunath Meiyappan and Raj Kundra were banned for life from the sport for betting on matches and passing information to bookmakers.
  • PepsiCo paid $61.31 million for the IPL title sponsorship rights in 2013.
  • The DLF, India's biggest listed property developer, paid 3.97 billion Indian rupees ($61.31 million) for the IPL title sponsorship rights from 2008-12.

Sources:

  • "BCCI and PepsiCo working to resolve IPL concerns" by The Express Tribune, no date provided