The Hindu Business Line : Sponsors not jolted by BCCI decision to cap endorsements

New Delhi April 10 The Board of Control for Cricket in India's (BCCI) decision to put a cap on the number of endorsements by the men in blue does not seem to have perturbed corporate houses and the agencies which manage the cricketers' fortunes, since the decision spares the players' current contracts.

"The BCCI's decision really doesn't have an immediate impact on the players since it keeps the current contracts out of the loop. It only implies the new contracts that the players will sign. However, for fresh contracts to shape up there has to be a market for the players, which as of now has ceased to exist because the game itself is not doing well," said Ms Latika Khaneja, Director, Collage Sports Management. "The contracts will, however, cease to exist if the players stop playing for the national team," she added.

Glaxo Smithkline, which has Virendra Sehwag and Sachin Tendulkar as endorsers of its energy drink Boost, was non-committal in an e-mail response, "It is premature to comment on the BCCI's decision to limit player endorsements. We have had a long-standing association with our brand ambassadors and we expect to continue our relationship."

Mr Girish V Rao, VP, Marketing and Sales, LG Electronics Ltd, said, "We had taken a decision three years back to stay away from cricket endorsements but continue to be associated with the game of cricket. We will still abide by this going forward." Sahara, the official sponsors of the Indian cricket team, said, "As a corporate policy, we do not interfere in the functioning of the Board."

PepsiCo India, one of the key sponsors of the ongoing ICC World Cup Series and also the team, in an e-mailed response said, "Pepsi has long-term partnerships with all stakeholders in Indian cricket and welcome any development toward the improvement of cricket in India. We will abide by whatever is decided between BCCI and the players."

Meanwhile, Percept D'mark, one of the agencies that handles the contracts of the players, met BCCI officials earlier in the day and appealed to the Board to reconsider its decision on behalf of six of the sponsors in its kitty — Sahara, DLF, Microsoft, Nokia, Puma and TCL.

The BCCI's decision comes in the wake of the Indian team's exit from the World Cup and on accusations that the players' endorsements were having an adverse impact on the performance levels. Contracts reportedly have clauses that link payments to players based on the duration they spend at the crease and their place in the team.