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Cricket (Sport)

Pepsi Threatens to End IPL Title Sponsorship Amid Spot-Fixing Scandal

Strategic Insights

— 1 min read

The beverage giant Pepsi has sent a notice to the Board of Control for Cricket in India (BCCI) expressing its intention to terminate the five-year title rights agreement for the Indian Premier League (IPL), citing the spot-fixing scandal and the resulting damage to the game's image. The controversy-ridden IPL hit a new low when the Supreme Court recommended suspending the franchises - Rajasthan Royals and Chennai Super Kings - for two years. Pepsi committed Rs3.96 billion over five years in 2012 for the title sponsorship, with two years still left to go on the contract.

Key Takeaways:

  • Pepsi has sent a notice to the BCCI, threatening to terminate the five-year title rights agreement for the IPL due to the spot-fixing scandal and resulting damage to the game's image.
  • The BCCI has assured Pepsi that steps will be taken to address the concerns and work towards necessary solutions in the interests of the league and Pepsi.
  • Pepsi has accused the BCCI and its officials of failing to investigate into allegations of betting, match-fixing, and other sporting frauds associated with the IPL.
  • The Supreme Court's Justice Mukul Mudgal-led probe panel report and earlier order by Justice TS Thakur and Justice FMI Kalifulla were extensively quoted in the notice, highlighting the BCCI's failure to uphold the game's integrity.
  • The notice also points out the alleged conflict of interest of the then BCCI president, N Srinivasan, who was the owner of Chennai Super Kings.
  • Pepsi claims to have fulfilled all its obligations under the agreement and is not in breach of the terms, but suggests that the BCCI didn't do its part in ensuring the game's integrity.

Statistics:

  • Rs3.96 billion: The amount committed by Pepsi for the title sponsorship over five years.

*Rs786 million: The amount of bank guarantee for the five-year contract of Rs3.96 billion, which Pepsi is seeking to be returned.

  • 2013-2017: The period of the five-year contract between Pepsi and the BCCI.
  • 2012: The year in which Pepsi committed Rs3.96 billion for the title sponsorship.

Sources:

  • Sportz Network Pvt. Ltd (Copyright 2015), distributed by Contify.com
  • Indian Express, which first broke the news and carried excerpts of the termination notice
  • The Supreme Court of India, for quotes from the Justice Mukul Mudgal-led probe panel report and earlier order by Justice TS Thakur and Justice FMI Kalifulla

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