PepsiCo to Exit as IPL Title Sponsor, Replaced by Paytm

Strategic Insights -

PepsiCo, a US snacks and beverage major, is finalizing its exit as the title sponsor of the Indian Premier League (IPL), the world's richest T20 cricket league. The company, citing the league's association with match-fixing scandals and biased conduct by the BCCI, has been in talks with the Board of Control for Cricket in India (BCCI) to terminate the sponsorship agreement. Paytm, an e-commerce and payments major, is reportedly set to take over as the new title sponsor, with the BCCI agreeing to maintain the original sponsorship fees of Rs 396 crore for the five-year deal.

Key Takeaways:

  • PepsiCo's five-year sponsorship deal with the IPL expired in 2017, but the company had already begun to distance itself from the league due to match-fixing scandals and biased conduct by the BCCI.
  • PepsiCo paid Rs 396 crore for the title rights of the tournament from 2013-2017, nearly double the amount paid by previous sponsor DLF.
  • The BCCI and PepsiCo have amicably resolved issues, and PepsiCo will not have to pay the balance of around Rs 150 crore left of the sponsorship fees.
  • Paytm, an e-commerce and payments major, is reportedly set to take over as the new title sponsor, with the BCCI agreeing to maintain the original sponsorship fees of Rs 396 crore for the five-year deal.
  • Paytm's previous sponsorship deal with the BCCI was worth Rs 203 crore for four years, which includes Rs 2.42 crore per every home international fixture played by the Indian cricket team.
  • The new sponsorship deal with Paytm is expected to be announced after the BCCI meeting on Sunday.
  • PepsiCo and Paytm have not made any official comments on the matter.

Statistics:

  • Urnamount of sponsorship deal: Rs 396 crore (original amount offered to PepsiCo)
  • Remaining balance of sponsorship fees: around Rs 150 crore
  • Previous sponsorship deal with DLF: Rs 192 crore (approximately half of the amount paid by PepsiCo)
  • Paytm's previous sponsorship deal with the BCCI: Rs 203 crore for four years
  • Amount paid by Paytm per every home international fixture: Rs 2.42 crore
  • Number of years: 5 (duration of new sponsorship deal with Paytm)

Sources:

  • "Pepsi to pull out of IPL; Paytm likely to replace it" by Shubhalakshmi Saxena and Jay Srinivasan (Indiatimes, Date not specified)
  • "Paytm to take over as IPL title sponsor, reports" by ESPNcricinfo (ESPNcricinfo, Date not specified)
  • "PepsiCo pays Rs 396 crore for IPL title rights" by PTI (PTI, 2012)
  • "BCCI, Paytm to discuss new title sponsor deal" by ESPNCricinfo (ESPNcricinfo, 2019)