The reasoning is simple: The BCCI owes its dominant position in world cricket to the IPL. Over the first eight years of its life, the IPL’s coffers have been immunue to a growing number of scandals – from match-fixing to under the table payments to team suspensions and eliminations to court cases.
It is reliably learnt that 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 informed newly elected BCCI president Shashank Manohar about the development.
New board president Shashank Manohar, who took over last Sunday, already has a host of issues to deal with and has announced a number of reforms. Pepsi’s desire to exit the league – which currently has
only six teams – is another complication, and a large one at that.
Shukla tried to downplay the issue by stating the BCCI has already started the hunt for PepsiCo's replacement. "We are in talks with other sponsors as well, so the title deal with Pepsi is not that big an issue. They have certain points and we are going to settle them amicably in the next meeting," he said.
“Last season, Pepsi wanted to withdraw, especially in the aftermath of the spot-fixing case but the BCCI managed to convince it to stick on for another year. However, this time it was firm that it will not continue its association with the IPL, more so after the Lodha Committee recommended the suspension of Chennai Super Kings and Rajasthan Royals. The conflict of interest issues also had an impact,” said an IPL source.
It remains to be seen if the IPL, in its most tumultuous phase, attracts a new sponsor that could match the price that was being paid by PepsiCo. For now, even the number of teams that will participate in IPL 2016 is uncertain, with Super Kings having challenged their suspension in the court, and the BCCI still having the power to exercise its right to terminate the franchise agreement of both Super Kings and Royals.
PepsiCo will be the second corporate house to end its association with IPL as a title sponsors. DLF India did not renew its association after the expiry of its five-season deal following the first five editions of the league.
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