India's JSW Group, an $11B
conglomerate with interests "ranging from steel to power," is shelving
plans to buy a cricket team in the "lucrative" Indian Premier League, citing the "negative aura" of the corruption-hit competition, according to Shah & Chatterjee of REUTERS. Domestic
media had reported that JSW, controlled by billionaire Sajjan Jindal,
was in talks with British beverage group Diageo to buy unit United
Spirits Ltd.'s stake in the Royal Challengers Bangalore cricket team, in
a $100M deal. But Parth
Jindal, son of Sajjan Jindal and the family member who "oversees the
conglomerate's sports interests," said that a cricket deal "was off the
table for now." He said that developments this week in a "lengthy corruption
probe" had made the brand risk of owning a team "too high." He said, "I
think it's a 'No' at this point of time, purely based on the whole
negative aura that has been generated. We don't want our
brand to be associated with a league that is so tainted at the moment." On Thursday, the Economic Times
reported that PepsiCo, the title sponsor of the league, "may not bid for
the rights again" after its five-year, $62M contract expires in '17. PepsiCo "did not respond to requests for comment" (REUTERS, 7/16). In Abu Dhabi, Rebecca Bundhun reported analysts said that the match-fixing scandal "could prompt other companies to reconsider associating with the event." Sanjay Chakraborty, a marketing communication adviser based in Ahmedabad in Gujarat, said, "Companies cannot risk their brand at all at this point in time. Whether it's an attachment to a celebrity or an event, if that becomes tainted, then they'll play it safe. They won't go forward and get associated with an event that has an image problem." He said that companies already involved in IPL "might be reviewing their contract now and whether they should continue or not." Chakraborty said that "this could give companies an opportunity to buy into IPL at lower rates" (THE NATIONAL, 7/16).
WAITING IT OUT: The PTI reported JSW Sports is "open to acquiring an IPL team." JSW Sports CEO Mustafa Ghouse said, "As the JSW Group Chairman said we are interested in acquiring a IPL team. We are still interested in it, but the events in the past two days have forced us to wait and watch the situation and then take a decision after things are clear." He added, "After the IPL event, I'm sure any company interested in buying an IPL team will wait for things to clear. We need to see the decisions of the BCCI and IPL following this. We do understand that there are 2-3 IPL teams on the block that can be acquired. Unless there is clarity, how can we go ahead with such a move" (PTI, 7/16).