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BCCSL on the verge of Dilmah defeat
CricInfo - 6 May 2002

The Board of Control for Cricket in Sri Lanka (BCCSL) is on the verge of renegotiating their team sponsorship deal with Dilmah Tea after failing to persuade the International Cricket Council (ICC) and Pepsi to allow Dilmah to advertise in the ICC Champions Trophy later this year and the 2003 World Cup.

The three-year sponsorship deal, signed eight months ago for a record 3.2 million dollars, ran into trouble after Pepsi, the giant soft drinks manufacturer, signed an exclusive non-alcoholic beverage product sponsorship with the ICC for the Champions Trophy later this year and 2003 World Cup.

The BCCSL had supported the ICC's decision to offer exclusive sponsorship deals, a strategy designed to maximise revenues from the two tournaments, but had apparently not anticipated that their Dilmah tea deal would conflict with the exclusive rights offered to Pepsi, especially considering the fact that Dilmah do not possess an ice tea product which might be considered a threat to Pepsi's own iced tea brand.

There have been allegations that the ICC warned the BCCSL of a potential conflict before the deal was signed, but Anura Tennekoon, the BCCSL's chief executive, has publicly denied ever being formally forewarned by the world's governing body.

After the ICC Executive Meeting at Cape Town in March, ICC chief executive Malcom Speed agreed to ask the Global Cricket Corporation (GCC), a marketing consortium in charge of the sale of ICC marketing and broadcasting rights for the two tournaments, and Pepsi to allow a special exception considering the circumstances.

But the GCC and Pepsi have so far stood firm on the issue and BCCSL sources have admitted that time is running out before they have to consider reopening negotiations with Dilmah. A final decision from the GCC is expected by May 20.

Should Dilmah be stripped of their team sponsorship in the two high profile tournaments, they are expected to consider continuing their association with Sri Lanka cricket, although their financial commitment will surely be significantly less than what was originally offered.

© CricInfo


Teams Sri Lanka.