Global beverage manufacturers, Pepsi Co., today, pulled out of a five year deal, as the title sponsor for the Indian Premier League, and have been replaced by Chinese mobile phone manufacturer, Vivo Mobiles. This move comes on the same day when the BCCI decided to float two tenders for new teams, to replace the two banned franchises, namely, Chennai Super Kings, and Rajasthan Royals.
The BCCI, in a statement, said that, “The IPL title sponsorship right has been assigned to M/S Vivo mobiles. Vivo is to give the Bank Guarantee in next ten days.”
Pepsi Co. had joined hands with the IPL, back in 2013, in a deal that cost the global beverage giant a whopping Rs 396.8 crore, for five seasons.
Although Pepsi has not revealed any specific reasons behind ending their contract with the IPL franchise, it is however being speculated that their decision came after the sport-fixing scandal, back in 2013, that involved cricketers, S Sreesanth, Ankeet Chavan, and Ajit Chandila. Similar charges had also been imposed on CSK, and RR team owners, Gurunath Meiyappan, and Raj Kundra, for which, a life ban was imposed on both, based on a decision from the Supreme Court appointed, Justive RM Lodha Committee.
Pepsi Co. apparently felt that the spot-fixing charges brought disrepute to the T20 cricketing franchise.
Further more, PepsiCo India Vice President (Beverages Category), Vipul Prakash said, “BCCI and PepsiCo have had a longstanding cordial relationship. Post our discussions it has been mutually agreed that PepsiCo will be assigning its title rights of IPL to Vivo Mobile India.”
He further added that, “PepsiCo has been associated with cricket in India for the last 25 years and we immensely value its contribution to the success of our brands. We will continue to associate with sports and cricket as a platform to connect with our consumers.”
In another decision taken at the BCCI working committee meeting, it was agreed that Nike will continue as the main apparel sponsor of the Indian Cricket team.