PepsiCo to quit IPL, tech firm front-runner

• US snacks and beverage major PepsiCo is finally on its way out as the title sponsor of Indian Premier League (IPL), the world's richest T20 cricket league
• The Purchase-based MNC is being replaced by a tech company, details of which would be made public after the BCCI meeting on Sunday
• The new sponsor, widely expected to be e-commerce and payments major Paytm, will move in on the same terms that were offered to PepsiCo

US snacks and beverage major PepsiCo is finally on its way out as the title sponsor of Indian Premier League (IPL), the world's richest T20 cricket league. The Purchase-based MNC is being replaced by a tech company, details of which would be made public after the BCCI meeting on Sunday.

BCCI has not renegotiated the original sponsorship fees of Rs 396 crore for the five-year deal with the new partner, people familiar with the matter said. The new sponsor, widely expected to be e-commerce and payments major Paytm, will move in on the same terms that were offered to PepsiCo. Both PepsiCo and Paytm did not offer any comments.

All issues have been amicably resolved between BCCI and Pepsi and the beverage major will not have to pay the balance of around Rs 150 crore left of the sponsorship fees, these sources who did not wish to be identified, said.

PepsiCo had bought the title rights of the tournament in 2012 for the period 2013-2017 for Rs 396 crore, which is nearly double of what IPL's previous sponsor, realty firm DLF, paid for the previous five-year period. PepsiCo and BCCI's ties started souring after match-fixing scandals surfaced over the last few years of IPL. In July this year, two IPL franchises, Rajasthan Royals (RR) and Chennai Super Kings (CSK), were suspended from playing in the tournament for two years by a Supreme Court-appointed panel after they were found guilty in an illegal betting and match-fixing probe.In 2013 too, the tournament had started on a wrong note when spotfixing scandals were unearthed.

PepsiCo sent a notice to BCCI earlier this month, alleging the cricket board had not acted in a fair and transparent manner to prevent or take corrective action related to sporting frauds. It also mentioned the biased conduct of erstwhile BCCI president and owner of CSK, N Srinivasan. It had written to BCCI saying that it was pulling out as the league was bringing disrepute to its brand.
Ever since Pepsi wrote to BCCI about its decision to pull out, the cricket board had been in talks with several companies, including Paytm, for the role of IPL's title sponsor. Though it had made known its intent to throw its hat into the ring, sources close to the Noida-based company said it is still weighing the pros and cons of the impending deal with BCCI.

In July, Paytm, owned by One97 Communication, coughed up around Rs 203 crore to become the title sponsor of India's home cricket matches till 2019. It will pay BCCI Rs 2.42 crore per every home international fixture played by the Indian cricket team for four years.