IPL 7 must go on: Why Pepsi is driving this decision

The last one week has been turbulent to say the least in the life and times of BCCI and its office bearers. Never before have had they faced such a storm, and this one is unlikely to subside without causing some destruction, and some serious cleansing.

[caption id=“attachment_80503” align=“alignleft” width=“380”] Spare a thought for Pepsi: It has been a disastrous two years[/caption]

Whatever happens within the administration of Indian cricket, one thing is for sure — IPL7 will go on. It has to, and none other than PEPSICO will take that decision. Too much is riding on IPL for PEPSICO. This is their second year of sponsorship, and it’s been a horrific two years. Spare a thought for the brand; Year one saw the spot-fixing scandal unearthed, and now Year two sees the Supreme Court proposing bans on two IPL champion teams; Chennai Super Kings and Rajasthan Royals.

Here are some of the reasons, why PEPSICO is going to be driving this decision:

• IPL sponsorship was a good strategic marketing move. It’s in the peak summer season, which generally accounts for over 60 percent of annual sales and has high viewership

• PEPSI has invested Rs 160+ crore annually in and around the IPL

• According to Repucom International, which runs an independent sponsorship evaluation matrix, brand Pepsi had the lion’s share during the 2013 season, with a 67 percent share of exposure among the central sponsors of IPL

• The 2013 summer, has been a rough one for PEPSICO, they can’t afford another 2013 performance

• Their share of throat is much lower than that of Coca Cola. A recent India Today graphic shows that Pepse, 7Up, Mountain Dew and Mirinda together account for 34.1 percent of market share, while Coca Cola’s products - namely Fanta Orange, Coke, Sprite, Thums Up and Limca account for 56.7 of the market.

BCCI and the IPL administration will have to find a solution to PEPSICO, in the same manner they did when they shifted IPL7 from South Africa (a Coca Cola territory) to UAE (a PEPSICO stronghold).

Here are the possible scenarios to the Supreme Court’s suggestion that the two champion teams are banned:

• They will go back to SC with a time bound inquiry into the fixing probe, which will be strategically defined for after the completion of IPL7

• They will argue, that not everyone involved is tainted and all cricketers and employees should not suffer

• They will guarantee to the Supreme Court, that post IPL7, they will ensure a ‘change of ownership’ ie: Sale of both CSK and RR, like they have (had) with Team Hyderabad; From Deccan to Sunrises to new owners, as against banning them, like Kochi and Pune.

The pay out to PEPSICO from BCCI if IPL 7 is cancelled will be huge – and BCCI is not known for giving away money easily.