Tuesday, February 14, 2012

Sahara pullout may cost BCCI dear

Board of Control for Cricket in India (BCCI) President N Srinivasan is losing control over the game. Since taking the BCCI in 2011, he alienated senior players, lost its national broadcaster, canceled an IPL team and entered into a protracted legal battle with the other two franchises-Kings XI Punjab and Rajasthan Royals. On February 4, he was on the verge of losing most consistent sponsor cricket in India, Sahara India, which threatened to leave the IPL and a team sponsorship India about not being allowed extra money to apply for a replacement for sick captain Pune Warriors Yuvraj Singh. Sahara India spends Rs 560 crore in sponsorship of the team in India and Rs 1,720 crore in his IPL team, Pune Warriors. Their removal will punch a big hole in the BCCI's annual revenue of Rs 4,000 crore and put a question mark over the continuation of the cash cow of the Council, the Indian Premier League (IPL). Season 5 begins April 4.

Srinivasan had to call the veteran Jagmohan Dalmiya, president of Cricket Association of Bengal, to mediate between him and India chairman Subrata Roy Sahara. Dalmiya will now meet Roy on February 12 in Mumbai Sahara Star hotel, along with ipl President Rajeev Shukla. BCCI will try to convince Roy to change his mind. Roy, is reliably learned, has agreed to maintain your investment Rs 1,720 crore in the IPL team, but it is the demolition of Rs 560 crore sponsorship of Team India. "We will not let a good partner out with anger," said Shukla.

If Sahara India out of Pune Warriors, the match of the IPL matches would mean less new deals and lower prices to issuing Set Max (currently paying Rs 820 crore per annum for a 10-year agreement signed in 2007), title sponsor DLF and other advertisers. "The celebrated brand is now facing some tough questions from advertisers who want to know what is in store," says the analyst and Future Brands MD and CEO Santosh Desai.

The current season is crucial for the IPL and T20 leagues do not do well financially, is in trouble. "Once the stock was sold five months in advance. Now the interest is very low," says managing partner of Navin Khemka of Zenith Optimedia, a media buying company. Ratings ipl4 decreased to 3.94 from a peak of 5.29 in IPL3 in 2010, according to press reports of TAM.

Former cricketers claim must be something very wrong with the way the board has allowed its ties with various stakeholders to deteriorate. "BCCI needs a drastic overhaul," says former India captain Bishan Singh Bedi.

Senior officials of the BCCI have approached the Bharti Airtel, India's telecommunications company than for a quick deal for 18 months contract left over from Sahara India for three-and-a-half-year. In May 2010, Sahara India, the sponsor of the team over the past four and a half years, had bid Rs 3.34 crore for each test, a day and a Twenty20 match against Rs 2.89 crore Bharti. What sparked the latest controversy? Grouse Sahara India was that the BCCI ignored some of their genuine concerns regarding the warriors Pune. BCCI refused to add Yuvraj Singh price Rs 8 crore to Pune Warrior scholarship auction. The addition would have allowed the team to compete for a top player. Sahara India also paid more for the team that most participants Mumbai Indians and Royal Challengers. However, they played only 74 matches instead of the stipulated 94 promised by the BCCI during the auction.

Head of Corporate Affairs Sahara India Abhijit Sarkar said that the group is studying conciliatory tone of the Board and weighing your options before February 12 meeting. Even if the two sides mend, a reunion seems difficult. "Unfortunately, I never found the BCCI believe in genuine give and take," said a statement released by the group. "Any relationship does not fall on one issue," said an irate Roy said. In London, the worst critic Srinivasan, former IPL Commissioner Lalit Modi is enjoying his defeat. He wrote on his website: "A building is being done carefully shaken by a man-Narayanaswami Srinivasan, who is unaware of the consequences of their actions."

1 comment: