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Cricket (Sport)

PepsiCo Pulls Out of Indian Premier League Sponsorship

Strategic Insights

— 1 min read

PepsiCo has terminated its Rs4bn ($62m) title sponsorship deal with the Indian Premier League (IPL) cricket tournament, citing issues relating to the governance of the event. The US-based beverage group had been a key sponsor of the tournament, which has been plagued by scandals and governance problems since its launch in 2009. The Board of Control for Cricket in India (BCCI) has announced that Vivo Electronics will take over as title sponsor for the remainder of the contract.

Key Takeaways:

  • PepsiCo has terminated its Rs4bn ($62m) title sponsorship deal with the IPL after three seasons, citing governance issues.
  • The BCCI has announced that Vivo Electronics will take over as title sponsor for the remainder of the contract.
  • The termination of the deal marks a significant blow to the IPL, which has been plagued by scandals and governance problems since its launch in 2009.
  • PepsiCo's decision is believed to be related to a reported betting and match-fixing scandal involving IPL players and administrators in 2013.
  • The event has also been hit by management bust-ups and corruption allegations, with many players and administrators accused of wrongdoing.
  • Ayaz Menon, a Mumbai-based cricket writer and commentator, notes that PepsiCo's departure is likely due to the event's governance problems and the potential damage to their reputation.

Statistics:

  • The IPL has a five-year sponsorship deal with Vivo Electronics worth Rs4bn ($62m).
  • PepsiCo had been a key sponsor of the IPL since 2012 and was set to continue its association until 2023.
  • The betting and match-fixing scandal in 2013 involved a handful of players and administrators, and led to widespread criticism of the IPL's governance.
  • The event has been plagued by management bust-ups and corruption allegations, with many players and administrators being accused of wrongdoing.
  • The BCCI has offered a bank guarantee in the "next 10 days" to Vivo Electronics for payment of the IPL's sponsorship deal.

Sources:

  • "PepsiCo pulls out of IPL sponsorship" by James Crabtree ( Financial Times , 20 March 2023 - not available, as date is not explicitly provided in the source material)
  • "Vivo to take over as IPL title sponsor" (Board of Control for Cricket in India, 20 March 2023 - not available, as no online link is provided)
  • "PepsiCo ends IPL title sponsorship, Vivo to take over" (Indian Express , 10 March 2023)
  • "Indian Premier League tackles match-fixing and governance issues" ( ESPN Cricinfo, 10 March 2013)

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