New Delhi: Reports in the media say that global beverage giants PespsiCo want to pull out as title sponsors of IPL, and have sent a notice to the BCCI. It’s a big blow for the BCCI which is trying to get its act together under new president Shashank Manohar.
It’s believed that Pepsico has informed the IPL’s Chief Operating Officer (COO) 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.

It’s believed that they wish to do so because the controversy surrounding the spot-fixing case has brought the game into ‘disrepute’.

PepsiCo had earlier hinted that it was considering such a move: “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.  

The BCCI will take up PepsiCo’s notice during its working committee meeting in Mumbai on October 18.

In 2008, DLF, Indian’s biggest real estate company, had paid a sum of Rs 200 crore ($36.25 million approx.), to own title rights for the first five years (2008-12) of the tournament. But in August DLF decided not to renew its contract, forcing the BCCI to issue a new tender. The BCCI had set Rs 300 crore as the base price for the title sponsorship.

The IPL league, once valued by brand valuation company Brand Finance at $4.31 billion, has been constantly getting eroded with a new controversy hitting the sports league almost every year.