Pepsi is next sponsor of the Indian Premier League for 5 yrs

Soft drinks giant Pepsi clinched the five-year title sponsorship of the Indian Premier League (IPL) for Rs 396.8 crore ($71.93 million), which is almost double the amount paid by the earlier sponsor DLF. The real estate major had paid Rs 200 crore to be the title sponsor for five seasons starting in 2008, when the first edition of the Twenty20 domestic league was played.

Only two bids were received by the Board of Control for Cricket in India (BCCI), and Pepsi beat telecom giant Bharti Airtel, which offered Rs 316 crore. DLF had the first right to refusal but it declined to renew the sponsorship. PepsiCo was earlier the pouring rights sponsor of the IPL.

"It is not the number of companies that bid. The important thing is that the sponsorship amount has gone up considerably- double the amount the previous sponsor had paid," Rajeev Shukla, chairman, governing council, IPL, told Mail Today.

Shukla had earlier said, "PepsiCo are one of the largest sponsors in world sport and we look forward to working with them over the next seasons. I would also like to take this opportunity to thank DLF for its confidence in the IPL to become the League's first title sponsor in 2008."

The increase in the sponsorship amount is despite the notso-good health of the market. This is one more instance when the cricket sponsorship in the country has proved that recession is not an obstacle.

BCCI floated the tenders for title sponsorship last month. The bidders were asked to submit their bids by 11.30 am on Wednesday at the BCCI headquarters. The 'invitation to tender' was available from October 27 upon payment of Rs 2,00,000, which was non-refundable and non-adjustable.

"So far, our record of selling various properties of IPL has been very good. We have doubled, tripled or quadrupled the amount while selling some of the properties," Shukla told reporters after the IPL Council meeting.

Deepika Warrier, executive director, (marketing), Pepsico Beverages, pointed out the company's long association with cricket and the BCCI. "We have been associated with cricket for the last 20 years. The IPL is a tremendous product. It is a brand which rivals any other sporting brand across the world," she said.

Pepsi would gain lot of mileage, including branding and other marketing benefits. The number of matches to be played in the next five years has been mentioned in the 'invitation to tender'.

Courtesy: Mail Today