READ: PepsiCo's far from cordial termination notice to BCCI
A report suggests the beverage giant's notice to the Indian board was in fact very stern.
New Delhi: Despite a joint statement from BCCI and PepsiCo that stated both parties were amicably resolving issues surrounding the sponsorship deal, a report suggests the beverage giant's notice to the Indian board was in fact very stern.
According to the Indian Express, PepsiCo's termination notice states that the world's richest cricket board was responsible for failing to keep the sport clean.
Here are some excerpts from from the notice.
“BCCI failed to act in a fair and transparent manner to prevent or take corrective measures in respect of such sporting frauds.
Soon after PepsiCo executed the Agreement, various instances of betting, match fixing and other sporting frauds came to be associated with the IPL. Since BCCI failed to duly investigate into these allegations or take corrective measures, public interest litigations were filed and the entire issue eventually came before the Hon’ble Supreme Court of India by way of Civil Appeal.
The fraudulent and illegal activities committed in the IPL adversely affected the image of the IPL as also the game of cricket and brought them to disrepute.
BCCI was duty-bound to ensure that the game of cricket was played in accordance with the best practices to maintain the public confidence in its purity.
President of BCCI was acting in conflict of interest as the regulator of the IPL and at the same time as having commercial interest in the IPL.
We understand that the Justice Lodha Committee is investigating into the allegations against Mr Sundar Raman (IPL CEO) and is currently finalizing the reforms / amendments required in BCCI’s memorandum of associations, rules and regulations.
The findings of SC judgment, Mudgal Committee and Justice Lodha Committee clearly establish that the image of the IPL and the game of cricket has been tarnished and brought to disrepute. BCCI, by its acts and/or omissions failed in its legal and contractual obligation to ensure that it acted consistent with the high image of the game of cricket and that no lawful or illegal activities were associated with IPL.
BCCI’s acts and omissions as detailed above constitute an irremediable material breach of the agreement by BCCI. Such breach goes to the root of the agreement, destroys its substratum and renders the whole rationale and purpose of agreement infructuous."
PepsiCo informed IPL’s chief operating officer Raman about its intention to withdraw from the title sponsorship for which it had paid Rs 396 crore ($71.77 million) for the period 2013-2017.