Pepsi Urges Hc To Allow Sponsorship Cricket Series

Multinational giant Pepsi Foods Ltd yesterday pleaded before the Bombay High Court that it possessed the legal rights to sponsor the forthcoming triangular series between India, Australia and Zimbabwe, and sought an injunction to prevent the Board of Control for Cricket in India (BCCI) from awarding the sponsorship to any other party. The petition, filed by Pepsi Foods Ltd, was heard by Justice S S Nijjar who adjourned the matter till Monday to enable BCCI to file an affidavit in reply.

BCCI counsel Goolam Vahanvati said no sponsorship had so far been awarded to any party for the April 1-14 triangular series and assured sponsorship would not be given to anyone until the court hears the matter on March 2.

 

While Pepsi submitted that it possessed the right to sponsor the triangular series under an agreement with BCCI, the latter contended that sponsorship rights of Pepsi was outside the purview of the contract.

Pepsi said it had paid more than Rs 10 crore to BCCI so far for sponsoring cricket tournaments. Besides, Rs 2.56 crore (50 per cent of sponsorship money) had been paid on February 6 for the ongoing Australian tour of India comprising three test matches and seven one-day limited overs matches in the triangular series.

Pepsi said it had entered into an agreement with BCCI on September 4, 1996, to sponsor one-day internationals and test matches conducted by the board during the cricketing seasons of 1997-98, 1998-99 and 1999-2000.

Clause one of agreement provided that Pepsi would hold the right to sponsor a minimum of 15 one-day international matches conducted by BCCI and in case this many matches were not completed within the tenure of agreement, the contract period would be extended by as many cricketing seasons beyond year 2000 as required to complete 15 limited-overs ties.

Clause seven of agreement provides that if BCCI conducts a series of one-day internationals or test matches during the tenure of the contract simultaneously involving more than three participating teams then Pepsi would have the first option to sponsor the series on terms and conditions proposed by BCCI. And if Pepsi did not accept the conditions of BCCI the latter was free to offer sponsorship to any other party.

Clause seven has become a point of dispute because it talked about involvement of more than three participating teams whereas the forthcoming triangular series involves just three teams.

On February 12, a meeting was held between Pepsi and BCCI where various issues were raised by the latter. One of the main issues of the dispute was with regard to the Australians tour, including the triangular series, which BCCI contended was outside the purview of the contract.