Big blow? Pepsico unlikely to bid for IPL title sponsorship

Soft drink giants PepsiCo is unlikely to bid for title sponsorship of the Indian Premier League (IPL) after it's five-year contract expires in 2017.According to the Economic Times,  the controversy surrounding the tournament and the suspension of two teams has led to the company rethink it's bidding stance in the IPL.[caption id="attachment_106621" align="alignleft" width="380"] Reuters[/caption]The verdict of the Justice Lodha Committee imposing lifetime ban on Chennai Super Kings and Rajasthan Royals officials Gurunath Meiyappan and Raj Kundra respectively, and suspending these two Indian Premier League (IPL) teams for two years brought an end to the 2 year controversy surrounding IPL-6."Title sponsorship is a direct association with the brand image, which directly risks getting impacted by controversy," said an executive with knowledge of internal discussions at Pepsi to ET.But this speculation has been making the rounds since 2013 when in an interview, Chairperson and CEO of PepsiCo Indra Nooyi had hinted at a possible rethink in ties if the controversies were not resolved soon.Speaking to Business Line Indra Nooyi said, “We are a highly ethical and principled organisation. So we want to associate with organisations that are principled and ethical. We hope the current problems of IPL are short term and they are addressed. But if they are not we will have to go back and rethink”.However, these developments will not take place immediately and the company will carry out it's obligations until it's title sponsorship expires in 2017.PepsiCo in 2012 had pipped leading telecom communications provider Bharti Airtel to become the new title sponsors of the Indian Premier League with a whopping winning bid of Rs 396.8 crores in 2013, Airtel had offered Rs 316 crores, in the bid for the title sponsorship of the Twenty20 tournament, owned by the Indian Cricket Board (BCCI). Pepsi had reportedly paid the IPL double of what the previous title sponsor had offered.