Pepsi-IPL deal: BCCI Working Committee gears up for an action-packed Sunday

MUMBAI: The already dwindling relationship between soft drinks giants PepsiCo and the BCCI seems to be worsening by the day as the latter gets ready to host its crucial working committee meeting here on Sunday.
Sources say Pepsi's stand to quit the controversy-marred IPL has only gained momentum and a decision to that effect could be announced in the next two days when the cricket board members meet.It is reliably learnt that Pepsi has two "serious issues" with the BCCI with regards to the IPL. Firstly, given the visibility they already enjoy in the markets, especially the subcontinent, they're not keen on being associated with a brand that's been tainted with "fixing allegations".
Second, and more importantly, sources say Pepsi has indicated to the cricket board that the latter's "arrogant style of working" has not really been appreciated by the beverage company that bought the title rights for IPL in 2013 for a whopping Rs 396 crore (approx US$ 72m). Pepsi is well within its rights to consider quitting if the trigger happens to be the taint associated with the IPL in the backdrop of fixing allegations.
Both parties -if they decide to part ways -have come around to the conclusion that they will do so amicably. Sources say BCCI has already been eyeing a replacement -possibility of ecommerce company Paytm coming in -if Pepsi decides to walk out. "I would not like to comment at this point. Whatever we had to say has already been communicated in a joint statement between us and the BCCI," Pepsi India CEO D Sivakumar told TOI.
If Pepsi do walk out, they will not have to pay close to Rs 158.4 cr (approx US$ 14.3m) to BCCI for the last two years of the deal that would've ideally concluded in 2017.
"The two-year rights can be reassigned and there won't be a problem because IPL's ratings have not suffered and there are many potential sponsors who want IPL association," a source said.
Market experts have maintained that Pepsi may have overpaid for their title rights, double of what real estate company DLF had paid between 2008 and 2012. "DLF got major visibility through the deal and it was a fruitful association for them. The same cannot be said about Pepsi. However, in Pepsi's case, it added a lot of value to BCCI's central pool of sponsorship when they came on board given their huge presence," said an expert.
No termination for CSK, RR
The BCCI-IPL is unlikely to call for any further action on franchises Chennai Super Kings and Rajasthan Royals other than what the Supreme Court-appointed panel had recommended: suspending the two franchises for two years. While the suspension is likely to stand, there will be no permanent termination of the franchises even as the BCCI scurries to figure how the players of the two teams will be managed in the interim period.
Meanwhile, the two franchises are learnt to have whipped out their legal knives already and are sharpening their drafts to head to court even if the two-year suspensions are formally announced on Sunday.
BCCI, Kochi Tuskers meet
Senior BCCI officials are learnt to have met two co-owners of the Kochi Tuskers franchise to discuss a possible out of court settlement. The Board officials are learnt to have told the Tuskers co-owners to present a payment plan that could be affordable for both parties and have clearly told the franchise that paying the entire amount with interest will not be a possibility. BCCI lost the legal arbitration with Kochi Tuskers two months ago following which arbitrator and former SC Justice RC Lahoti had asked the board pay the franchise the entire amount along with 18% interest.