Sports Sponsorship - The 'Cricket Ambush Marketing' Controversy

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Case Details:

Case Code : MKTG046
Case Length : 11 Pages
Period : 2002
Pub Date : 2003
Teaching Note : Not Available
Organization : International Cricket Council, LG Electronics, Britannia, Philips India and HPCL
Industry : Media and Advertising
Countries : India

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The ICC/BCCI/Cricket Players/Corporates Tussle Contd...

Their presence was also necessary to generate high Television Rating Points (TRPs), so that the investment in the sponsorship rights could be justified. Thus, to resolve the crisis, ICC representatives visited Kolkata (West Bengal) to meet Jagmohan Dalmiya (Dalmiya), President, BCCI, and spin bowler Anil Kumble (Kumble) who represented the Indian players for resolving the issue.

The issue soon snowballed into a legal battle: the ICC filed cases against companies (including Britannia, Philips India and HPCL) for running promotions based on the World Cup for their products. Meanwhile, BCCI threatened that it would send the team to play without the leading players if they refused to sign the contract.

The ICC in turn claimed that the BCCI had entered into a contract to send the ‘best team'and could not send any other team. The unrelenting attitude of all the parties involved raised many questions in corporate circles regarding the issue of ambush marketing, the rights of individual players, and the legality of the moves of unofficial sponsors.

The fact that popular cricket matches to be held under the Champions Trophy (September 2002) and the 2003 World Cup (March-April 2003) could be affected by the above problems made the issue very important.

About Ambush Marketing

Commercial sponsorship has long been treated as a huge business opportunity by companies across the world. Sports sponsorship, one of the most popular forms of commercial sponsorship, has grown rapidly since the 1980s. Companies and event organizers started trying to exploit the advantages of sponsorships, which resulted in aggressive competition among corporates for getting associated with an event. It was reported that for the 1988 Seoul Olympics, sponsorship fees was around $ 338 million, which more than doubled to around $ 700 million for the 1992 Barcelona Olympics.

Companies spent lavishly on getting themselves associated with sports that were popular in their region (tennis, football, basketball, cricket and various other sports). By sponsoring sports events, companies hoped to increase audience awareness and enhance the image of their products and organization...

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