Sponsorship Rights -- Who's Right?
The International Cricket Council (ICC) and corporate business
entities are in the middle of a fight over the rights to sponsor
cricketers for tournaments such as the ICC Champions Trophy and the
World Cup which will attract millions of dollars from television
revenue.
Not since the advent of Kerry Packer has the ICC received such a
challenge to its authority over its control of the sport and the
outcome of this wrangling over $$$$ could have far reaching
implications for the future of limited overs competitions.
The ICC, to its credit, has signed up a string of official
sponsors (Not unlike what is done at the Olympics and other major
sporting games) for the ICC Champions Trophy or Mini World Cup as
it is also called which starts on September 12.
But star players from the various teams have balked at signing the
ICC contracts because of a conflict with their own lucrative
individual contracts.
Players like Sachin Tendulkar of India is a potential goldmine and
is eagerly sought after by sponsors because of his appeal to the
millions of young people in India.
Among the companies Tendulkar endorses are Visa, Adidas, Pepsi,
Colgate, Phillips and Fiat. His captain, Saurav Ganguly, endorses
Hero Honda while teammate Rahul Dravid endorses Castrol and Pepsi.
Ironically Pepsi and LG are two of the ICC?s sponsors for the
Champions Trophy. There is no saying how much money these players
will lose if they are unable to sign with their sponsors but one
can only assume that the loss will be substantial.
This is where the problem lies. The players are unwilling to give
up their lucrative endorsement contracts for the sum offered by the
ICC. The ICC has secured US550m for commercial rights for all its
events until 2007.
The ICC has distributed US$102 million to its affiliates. These
cricket boards will in turn dispense this money to the players.
The ICC has argued that the players must decide between playing for
cash or playing for country.
This is another problem that the ICC has on their hands. Unlike
years ago when cricketers played for love of country and pride in
representing one?s country took precedence over pesos, today?s
cricketers are ruthless when it comes to gaining value for their
money. The West Indies players revolt ahead of their inaugural tour
of South Africa in 1998 is a clear example. Unlike yesteryear,
cricket today means big bucks and the players now have agents
vested with the task of wringing the most out of sponsors or other
business ventures.
There is no easy solution. The ICC has used the phrase ?ambush
marketing? to describe the current situation. They may well be
right. For after all, if they have sought and received sponsorship
for the event, then it is only fair that the sponsors get value for
their money in terms of the stars being present.
But the players will argue that signing the ICC contract will
impinge on their right to sign endorsement contracts that reward
them well financially for their skill and popularity.
Michael Jordan, the great basketball player in the NBA used to earn
more from Nike than he did from playing for the Chicago Bulls even
though he was the highest paid athlete in the league but was never
prevented by the NBA from doing so. In other words individual
contracts with sponsors are outside of the control of governing
bodies. Whether the situation can be resolved is anyone?s guess.
The two sides might have to seek a compromise. For after all the
players popularity is greatly enhanced by them playing in ICC
tournaments. They will stand to lose those very lucrative deals if
they cannot play for their country. They need to think about that.
* Donald Duff is a Guyana-based sports journalist. He writes for
the Stabroek News.