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ICC chief executive requests compromise on Dilmah-Pepsi sponsorship clash
CricInfo - 18 March 2002

Malcom Speed, the chief executive of the International Cricket Council (ICC), has written a letter to the Global Cricket Corporation (GCC), the exclusive marketing arm of the ICC, and Pepsi, the giant soft drinks producer, in attempt to avert a sponsorship clash that would force the cancellation of a record Sri Lankan team sponsorship deal.

The issue revolves around the sale of exclusive sponsorship rights to Pepsi for the ICC Champions Trophy and World Cup, granting them the title of official non-alcoholic beverages supplier.

According to the ICC, these rights are infringed upon by an earlier deal signed by the Board of Control for Cricket in Sri Lanka (BCCSL) with MJF Teas (Pvt) Limited, who produce Dilmah tea.

Although the Pepsi is most famous for its sweet carbonated soft drink, they also market an iced tea product, which means that there is direct conflict between the two brands, even if Dilmah does not produce its own iced-tea drink.

Nevertheless, Speed, speaking to the media after the ICC's executive meeting in Cape Town, said he had personally written to the GCC and Pepsi, asking them for a special exception to Pepsi's exclusivity for the ICC Champions Trophy in light of the fact that Dilmah didn't manufacture an iced-tea brand.

But he also made it clear that the GCC, a joint venture between World Sport Group Plc. and News International, and Pepsi will have a final say on the matter. Should they be reluctant to compromise, the BCCSL will have no option but to drop Dilmah's team sponsorship for the ICC Champions Trophy.

No request has been made for a special exception in the World Cup, which suggests that it has also been agreed that the Dilmah sponsorship will have to be dropped for the 2003 World Cup in South Africa.

Speed explained: "The BCCSL were co-signatories for the World Cup contract for exclusive rights and stand to gain USD 7 million from the World Cup. This contract has allowed us to sell World Cup and ICC Champions trophy rights for USD 550 million and the exclusivity of these rights forms the basis of this deal."

He pointed out that disputes, however unfortunate, were sometimes inevitable, as was the case prior to the 1999 World Cup when the Australian cricket Board were forced to abandon a deal with Coca-Cola because of Pepsi's official status.

The BCCSL will be bitterly disappointed should they be forced to shelve the record sponsorship, worth USD 3.5 over a period of three years, as will Dilmah viewed Sri Lankan cricket as a perfect marketing vehicle, as they expand into new overseas markets.

Perhaps the likeliest scenario is for a compromise: Dilmah are dropped as team sponsors for the World Cup, but retained for ICC Champions Trophy. This, however, will require the renegotiation of the original contract and it's by no means clear as to whether would Dilmah would be interested in a team sponsorship deal without the international exposure guaranteed by a World Cup.

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Teams Sri Lanka.