IPL title sponsor PepsiCo, which bought the rights for close to Rs 400 crore for five years in 2012, may stay till the end of this season but will reconsider its association with the league after that, say well placed sources. The other long-term ground sponsors are Vodafone, Yes! Bank and Star India.
For different reasons, Sahara has already announced its decision to withdraw as the Indian cricket team sponsor. While its stated reason for this is the raw deal it has allegedly got from BCCI as an IPL franchise, those in the know point out that Sahara collects money from the public and the collection depends on people's faith in it. According to sources, its association with a scam-ridden game was proving bad for its business.
Speaking on the dilemma faced by Pepsico, a senior official in the know told TOI: "First, they overpaid for the rights, almost double of what DLF (the previous title sponsor) did. Now, they are under pressure not just because of the money but because the fixing allegations have put the IPL in a negative light."
Responding to a formal query, a statement released by PepsiCo did not deny any move to quit the IPL but only said that it wouldn't comment on media speculation. TOI spoke to several sponsors who said they were closely watching the developments while saying that it didn't make sense for them to pull out right now as the most crucial matches - the playoff for the remaining final spot (CSK are already in) and the final - are still to be played.
Rohit Gupta, president, MSM told TOI that he had not received any requests from on-air sponsors to pull out. "If corrective steps are taken there is no need to worry even for next year," he said. Media planners, however, said there would be questions raised next year about the credibility of the league.
"With just two matches remaining it does not make business sense for TV sponsors to pull out, but for long-term sponsors it is a major concern considering the money they have spent. Even if they want to pull the plug on IPL it will be difficult considering the way these agreements are structured," said Nandini Dias, COO of media-buying agency Lodestar Universal.
Certain sections of the cricketing fraternity added that knowing BCCI's style of functioning, PepsiCo will never be in a position - over the next five years - to get their title rights deal with IPL renegotiated even if they feel they have overpaid. "We have seen the latest instance where Sahara struggled to do that when they felt they were overpaying. So, it's a simple case of either staying associated with the IPL within the agreed contract or quit citing the allegations."
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