Pepsi set to terminate title sponsorship of IPL

Pepsi set to terminate title sponsorship of IPL: In a major blow to the Indian Premier League (IPL), soft drinks major PepsiCo has sent a notice to the Board of Control for Cricket in India (BCCI) communicating their desire to withdraw from the cash-rich league as title sponsors due to the spot-fixing scandal that has tarnished the image of the tournament, according to a report in The Indian Express.

The beverage giant is keen to walk out on the five-year title contract, due to expire in 2017, because of the league bringing “disrepute” to the game. However, BCCI sources claimed that Pepsi wants to end the deal due to its dipping foreign interests.

According to well placed sources PepsiCo has informed the IPL’s Chief Operating Officer Sundar Raman about its intention to withdraw from the title sponsorship for which it had paid Rs. 396 crore ($71.77 million) for the period 2013-2017. Raman is believed to have communicated this to the newly elected BCCI president Shashank Manohar.

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

“Because they have the deal with them so we are not bothering them. We have a bank guarantee with us and hence can confiscate it, but we are not doing it. Whosoever will get the rights, we will help get him that guarantee, get it transferred from Pepsi,” the source added.

Playing down the incident, Rajeev Shukla, IPL Chairman, told the media, “We keep on talking to our sponsors and we keep on negotiating with them. So that process is on throughout the year. There’s nothing new.”

Updating further on the issue, he said, “Shashank Manohar, the BCCI President, has also given instructions to concerned people in BCCI to talk to Pepsi and we are in constant consultation with PepsiCo. We will definitely work out on a solution.”

The BCCI is set to discuss the matter during its working committee meeting in Mumbai on October 18.