Hutch, ICC at Loggerheads

Breach Of ICC Contract: Telecom Major Wants Sachin Ads To Be Withdrawn

HUTCH and International Cricket Council (ICC) are on collision course. Hutch, one of the four global sponsors of the ongoing World Cup, is likely to seek compensation from ICC for breach of contract for its failure in stopping Reliance Communications (RCOM) from using ace cricketer Sachin Tendulkar in its ad campaigns. RCOM has been endorsed by Sachin in TV, outdoor as well as press campaigns, which Hutch alleges goes against the contract entered into with ICC. Sources said that Hutch was writing a fresh letter to ICC, seeking details of action taken by the council in this regard. “If things don’t fall into place quickly, Hutch will ask for compensation,” said sources familiar with the development. Hutch, India’s fourthlargest operator, has paid millions of dollars for securing global sponsorship rights of the six-week tournament spread across nine Caribbean nations. “The global partner status was sold to us with an understanding that ICC has control on the activities of the players, and, therefore, can grant us exclusivity against endorsements by players for our competitors,” Hutch director (marketing and new business development) Harit Nagpal said. ICC assured Hutch that it was taking action to stop RCOM from using the ads. But this was immediately disputed by the Anil Ambani company. RCOM branding head Sanjay Behl said that ICC has not approached the company and that RCOM would not withdraw the campaign. “If our competitors have not been approached to cease and desist, then it is a serious issue and, apparently, we have paid for rights which ICC can’t enforce,” Mr Nagpal said. Hutch has been ICC’s global telecom partner for the past three years. RCOM, meanwhile, is cashing in on the popularity of the little master, who gives unlimited score updates to Reliance mobile users in his voice besides a host of other services. According to Hutch, this is a case of “ambush marketing”. Ambush marketing is a tool in a brand’s arsenal as it aims at creating a differentiation in a competitive marketplace by stealing the thunder from the campaigns of a rival, who is an official sponsor. ICC currently has deals with four global sponsors, Pepsi, Hutch, Hero Honda and LG Electronics. These deals will expire after the World Cup later next month. Reliance ADAG had earlier pulled out as one of the main television sponsors (for India) on Sony Entertainment Television for the World Cup. It is said to be negotiating global sponsorship tie-ups with ICC for 2007-13. Under the terms of their contracts, players are not allowed to endorse products that are in direct conflict with the ICC’s official sponsors for a period of 45 days before, during and after an ICC tournament is held. However, the world cup is already in its second week and RCOM has been using Sachin all this while. While ambush marketing is not new to the world of sports, the current case raises questions about the protection available to official sponsors of such tournaments. Ahead of the 2003 World Cup, the South African Government had passed a legislation that could land those engaging in ambush marketing into jail.

Courtesy: EconomicTimes
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