International BusinessBCCI extends Sahara's contract as team sponsor
The Board of Control for Cricket in India (BCCI) has extended Sahara"s contract for another six months as the Indian team’s sponsor for the same price the company had paid earlier. Sahara had paid around Rs 1.9 crore per test match and one-day international (ODI), while it will pay Rs 1.5 crore for T20 matches.
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Even though Sahara won the bid for Rs 313 crore, it paid Rs 425 crore in total for additional matches as the team"s sponsor for four years. This deal was to conclude by the end of December 2009. BCCI was hoping to get a new sponsor on board and floated a tender in November. However, the board failed to evoke any response due to the steep base price set at almost Rs 515 crore (Rs 3 crore per match).
Board Secretary N Srinivasan said in a statement that the extension was given to Sahara on the basis of present terms and conditions by the marketing committee, headed by President Shashank Manohar. He added: “Before the expiry of the extension period, a fresh tender would be issued, inviting bids for the team sponsorship.” However, experts believe that the high base price will have to be lowered by BCCI in case it wants new sponsors. Media planners say their clients are willing to pick up the contract but at much cheaper rates — Rs 1.5-2 crore per match.
"Most clients will look at the contract if they have to pay between Rs 255 crore and Rs 340 crore. But the price fixed by BCCI at Rs 3 crore a match is too steep," a senior executive of a leading media buying agency had told Business Standard in an earlier interview.
According to industry sources, Tata DOCOMO, Idea, Bharti Airtel, Nokia and Hero Honda were interested in the deal. But they did not buy the Rs 5-lakh tender by November 24, which led to the collapse of the entire tender process.