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Marketing Sports Sponsorship: The `Cricket' Ambush Marketing Dispute - K Subhadra The case examines the concept of sports sponsorship and how ambush marketing has become an integral part of such sponsorship Reasons underlying the increasing use of ambush marketing tactics by companies during sports e!ents are analy"ed The case discusses the dispute between the #nternational $ricket $ouncil %#$$& and #ndian cricketers in late '((') regarding certain anti*ambush marketing clauses that restricted players from endorsing the products of companies other than the official sponsors chosen by the #$$ The case also examines the role of the Board of $ontrol for $ricket in #ndia %B$$#&) the official sponsors as well as the ambush marketers in the dispute Every major sporting event provides protection to their partners and anyone involved in elite sport would recognize that this is an essential component of being able to stage these events. - Malcolm Speed (Speed), Chief Executive, International Cricket Council, in 2 2! We have been made victims in a commercial battle between the BCCI and the ICC. - "ane#h Mahalin$am ("ane#h), Marketin$ %ead, &" Electronic#, in 'anuar( 2 )! The cc!"cci!Cricket #la$ers!Corporates Tussle #n December '((') media reports world o!er pro!ided details of heated debates in!ol!ing companies such as Britannia) +,) -hilips #ndia and .-$+) players of the #ndian cricket team) the #nternational $ricket $ouncil %#$$& / and the Board of $ontrol for $ricket in #ndia %B$$#& ' The cause of the tension0 12mbush marketing34 clauses recently bought out by the #$$) that restricted cricket players from endorsing products other than #$$3s official sponsors for any ma5or championships conducted by the #$$ during '(('*(6 #$$ de!eloped ambush marketing clauses to safeguard the rights of companies who had paid huge sums of money to obtain the sponsorship rights for all matches to be held during '(('*(6 The official sponsors had reportedly bought the rights for 788( mn from the ,lobal $ricket $orporation %,$$&) #$$3s marketing partner The organi"ation was taking proacti!e measures to ensure that the problems it %and the official sponsors& had faced earlier due to ambush marketing tactics by unofficial sponsors could be a!oided The #ndian cricket players strongly opposed #$$3s decision) claiming that the contract terms were unfa!orable to their financial interests #ndia3s star cricketers Soura! ,anguly and Sachin Tendulkar e!en went to the extent of threatening to boycott the #$$ $hampions Trophy to be held in Sri +anka during September '((' #ndian players were not the only ones who were against the new rules -layers from South 2frica and 2ustralia) as well as the 9ederation of #nternational $ricketers3

2ssociation %9#$2&): spoke against #$$ and supported the #ndian cricketers The official sponsors as well as the #$$ reali"ed that the presence of cricketers like Tendulkar) ,anguly and Rahul Dra!id was important to draw crowds to the matches Their presence was also necessary to generate high Tele!ision Rating -oints %TR-s&)8 so that in!estment in the sponsorship rights could be 5ustified Thus) to resol!e the crisis) #$$ representati!es !isited ;olkata %<est Bengal& to meet =agmohan Dalmiya %Dalmiya&) -resident) B$$#) and spin bowler 2nil ;umble who represented the #ndian players for resol!ing the issue The issue soon snowballed into a legal battle0 The #$$ filed cases against companies %including Britannia) -hilips #ndia and .-$+& for running promotions based on the <orld $up for their products >eanwhile) B$$# threatened that it would send the team to play without its leading players) if they refused to sign the contract The #$$ in turn claimed that the B$$# had entered into a contract to send the 1best team3 and could not send any other team The unrelenting attitude of all the parties in!ol!ed raised many ?uestions in corporate circles regarding the issue of ambush marketing) the rights of indi!idual players) and the legality of the mo!es of unofficial sponsors The fact that popular cricket matches to be held under the $hampions Trophy %September '(('& and the '((4 <orld $up %>arch*2pril '((4& could be affected by the abo!e problems made the issue !ery important About Ambush Marketing $ommercial 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 /@A(s $ompanies and e!ent organi"ers started trying to exploit the ad!antages of sponsorships) which resulted in aggressi!e competition among corporates for getting associated with an e!ent #t was reported that for the /@AA Seoul Olympics) sponsorship fees was around 744A mn) which more than doubled to around 76(( mn for the /@@' Barcelona Olympics $ompanies spent la!ishly on getting themsel!es associated with sports that were popular in their region %tennis) football) basketball) cricket and !arious other sports& By sponsoring sports e!ents) companies hoped to increase audience awareness and enhance the image of their products and organi"ation Sponsorship deals enabled marketing personnel to communicate directly with a large section of consumers on a single platform) as sports attracted people cutting across the boundaries of sex) age) religion and region 2s corporate interest in sponsorships increased) organi"ations that sold sponsorship rights hiked their charges substantially 9or e!ents such as the Super Bowl in the BS) 1<orld $up3 matches for many popular sports) and the tennis grand slam tournaments) sponsorship rights in!ol!ed payments of billions of BS dollars e!ery year Since only a limited number of companies had the financial muscle to buy such rights) many organi"ations began resorting to ambush marketing techni?ues 2mbush marketing was generally done at two le!elsonsite and in the media #n onsite ambush marketing) companies promoted their productsCser!ices at the e!ent !enue and in the surroundings %that is) roads leading to the !enue) refreshments) clothing) outdoor ad!ertising) posters and stalls& >edia ambush marketing primarily includes sponsoring spots on the field) scrolls and positioning of logos through media %TV) radio and press& 2ccording to analysts) ambush marketing had a twofold benefit0 One) it helped a company garner maximum returns on marketing) and second) it weakened the competitor3s branding efforts by confusing !iewers 2mbush marketing techni?ues range from competiti!e ad!ertising to underwriting promotions for sending !iewers to the e!ent %Refer Exhibit # for the !arious forms of ambush marketing& #n one of the earliest instances of ambush marketing) during the /@@D Olympics held in 2tlanta %BS&) consumer electronics ma5or Samsung launched an onsite

ambush marketing attack) targeting ri!al -anasonic by obtaining rights to parking lots near the Olympic -ark 2ccording to reports) as a result of this mo!e) awareness of the Samsung brand reached as high as @E) while that of the official sponsor -anasonic touched only 4EF Thus) ambush marketing allowed companies to exploit the benefits a!ailable only to official sponsors at relati!ely lower costs ,radually) the practice spread to other sports such as football and tennis 2mbush marketing became !ery common at cricket matches $ricket) as a sport) had emerged as the most popular game in commonwealth countriesD) especially in the 2sian subcontinent #n this region) cricketers were regarded as demi*gods and were considered role models by many youngsters The high fan following for the sport prompted corporates to sponsor cricket matches and also sign up high profile cricketers as celebrity endorsers 2 large number of product categories soft drinks) cars) two*wheelers) apparel) consumer electronics) lubricant oils) biscuits) credit cards and many morewere associated with cricket 2ccording to reports) TV !iewership during cricket matches was !ery high in the subcontinent and no other program could reach those !iewership*rating points 9igures pro!ided by leading satellite TV sports channels) ES-G and Star Sports) re!ealed that // @8 million or D8E of #ndian men o!er /8 years of age in 2B$ categories in cable and satellite homes) watched cricket matches $ricket !iewing in #ndia also cut across gender and age groups) hence pro!iding corporates a single platform for appealing to a !ariety of audiences The li!e telecast of cricket matches in #ndia reportedly a!eraged TR-s more than /(a feat few TV programs in the country could match 2ccording to media reports) in '((/) around :8( brands ad!ertised in o!er /D)((( spots during the four One Day #nternationals %OD#s& in which the #ndian team participated #ndustry obser!ers commented that many brands) such as 2ll Out mos?uito repellant) >R9 tyres) +, refrigerators and Dr >orepen among others) en5oyed a high brand recall largely due to ad!ertisements they aired during cricket matches By the mid*/@@(s) as corporate in!estments in cricket sponsorship increased) ambush marketing acti!ities also increased #n fact) one of #ndia3s most well* remembered ad!ertisement campaigns belongs to the ambush marketing genre This was cola ma5or -epsi3s 1Gothing Official 2bout #t3 campaign during the /@@D cricket <orld $up The multimedia campaign featured many leading cricketers and blatantly ridiculed archri!al $oca*$ola3s 1official3 association with the tournament The humorous ad!ertisements became extremely popular and the presence of leading cricketers in these ads went a long way in helping -epsi establish itself as the preferred cola in the country -epsi resorted to ambush marketing again in '((/ during the $oca*$ola $up final cricket match at Shar5ah .ot air balloons put up all o!er the city) displayed -epsi3s brand name confusing !iewers about the sponsor and helping -epsi score o!er $oca*$ola in terms of product recall O!er the years many other companies used ambush marketing tactics successfully This prompted companies that spent hea!ily on purchasing sponsorship rights to cry foul To address the abo!e issue and to 1protect3 the in!estments of the official sponsors of the '((4 <orld $up) the #$$ decided to pro!ide ambush marketing co!er to the sponsors #n '((() #$$ con!ened a meeting to discuss the ambush marketing protection clauses) which were accepted by all the boards #$$3s agreement with the official sponsors had three main clauses0 Only official sponsors would be allowed to use !ideo clippings from any world cup matches Only official sponsors would be allowed to use the <orld $up logo and use the e!ent in their marketing campaigns 2 1cooling off period3 was introduced) which restricted players from endorsing brands other than those of official sponsors for a period of o!er /(( days %a D(*day

period0 4( days before the tournament starts and 4( days after the tournament& The De%iant Cricketers an& the Trouble& Companies The third clause enraged many players and they lashed out against the #$$ and B$$# #ndian cricketers refused to sign the players3 contract with the #$$ for the September '((' $hampions Trophy matches They claimed that this clause affected their existing contracts with the companies they were associated with The cricketers also said that signing such a contract for the '((4 <orld $up would be e!en worse as while for the $hampions Trophy series) players were not allowed to endorse products from ri!al companies of official sponsors6 for a period of 6@*A( days %tournament period of /@ days H D(*day period&) for the <orld $up) scheduled for o!er :: days) they had to 1cool off3 for /A( days This was because #$$ barred companies other than official sponsors from using images of cricketers for ad!ertising for a period of six months 2nalysts felt that no corporate sponsor would be ready to pay huge amounts to cricketers for endorsements in this kind of a scenario) as #$$3s clauses would se!erely restrict the use of ad!ertisements featuring these celebrities <hile analysts were surprised by the details of #$$3s clauses) they were aghast at the way in which B$$# signed the contracts with #$$ without taking the players into confidence #n spite of opposition from players) #$$ stood by its decision and stated that the rights of the players had not been !iolated The #$$ stated that ambush marketing clauses were incorporated after the cricket boards of all the countries had gi!en their consent in '((( itself #$$ sources said that players needed to make a choice between 1money3 and 1playing for one3s country3 Speed said) I#f it is playing for his country) he %player& needs to find a solution and not look to the #$$ to dilute its ambush marketing protections in order to sol!e his contractual issues I 2nswering the allegation that #$$ had acted against the financial interests of players) #$$ said that it had distributed around 7/(' mn to !arious cricket boards and players The row intensified when players from South 2frica) <est #ndies) England and 2ustralia also refused to sign the contracts stating that the #$$ did not ha!e the authority to control their 1imaging rights3 Endorsing the player3s stand) Tony #rish) $hief Executi!e of the South 2frican $ricketers3 2ssociation) said) IThe rights to the tournaments ha!e been sold to e!ent sponsors) but the players3 rights ha!e not been procured from the players I Se!eral former international cricket players supported the #ndian players and the 9#$2 e!en sent a note to all player associations ad!ising players not to sign the contract .owe!er) barring #ndians) players from almost all the concerned countries soon signed the contracts after deliberations with their respecti!e boards This did not come as a surprise since #ndian players stood to lose a lot more than players from other countries This was because the use of cricketers as celebrity endorsers was much more pre!alent and widespread in #ndia than in any other country <ith the crisis deepening) the #ndian ad!ertising industry expressed concern o!er the conse?uences #ndustry sources felt that the absence of big players %Tendulkar) ,anguly and Dra!id& would lead to a drastic fall in TR-s) resulting in huge loss of re!enues for ad!ertising agencies Sources added that if) as threatened) the B$$# sent the team without the big players for the $hampions Trophy) ad!ertisers who had agreed to book slots during matches might withdraw) leading to huge losses for both ad!ertising agencies and TV channels +eading satellite TV channel) Sony Entertainment Tele!ision) which had bought the broadcasting rights for the #$$ $hampions Trophy and <orld $up '((4 for around 7'88 mn) was extremely concerned about the outcome of the B$$#*players3 tussle +uckily) the #$$ softened its stand in September '((' and relaxed the clauses that banned endorsements that conflicted with official sponsors up to a month after the

tournament The 4(*day cooling off period after the tournament was bought down to /D days The issue seemed to ha!e been resol!ed for the time being and the entire #ndian team played in the $hampions Trophy .owe!er) #$$3s 1softening3 was short*li!edJ it later said that the concessions would not be extended to the '((4 <orld $up E!en as the dispute began picking up momentum once again) e!ents took an interesting turn This time action was initiated by the official sponsors of the <orld $up and those companies that were in!ol!ed in ambush marketing acti!ities Since the matches were expected to be watched by o!er :8 million households and companies were planning to put in Rs 4 bn in ad!ertising efforts) the stakes were much higher than in the case of the $hampions Trophy Companies in Trouble ' (et Again >ost of the leading #ndian cricketers happened to be celebrity endorsers for those companies that were the archri!als of the official sponsors0 Tendulkar endorsed Victor) a motorcycle from TVS) which was official sponsor .ero .onda3s direct competitorJ ,anguly endorsed $oca*$ola) official sponsor -epsi3s ri!alJ and Dra!id endorsed Samsung)A official sponsor +, Electronics3 ri!al The new #$$ regulations barred the unofficial sponsors from airing ad!ertisements featuring their celebrity endorsers #f a company like TVS strictly adhered to the rules) its in!estment of Rs /'( mn@ in the Tendulkar*Victor deal would be wasted The worst affected company was Sahara 2irlines) which had paid around Rs / bn for becoming the official sponsor of the #ndian team .owe!er) #ndian cricketers were not allowed to carry Sahara3s logo %on their apparel and e?uipment& since #$$ saw it as a direct competitor of official sponsor South 2frican 2irlines Though Sahara sources said that there was no clash with South 2frican 2irlines since only Sahara3s real estate business firm had signed on the #ndian cricket team) the players were not allowed to carry the Sahara logo 2fter much deliberation) negotiations) allegations and counter*allegations) Sahara announced that it would back out completely from the deal/( During late '((') many #ndian companies launched promotional campaigns centered on the '((4 <orld $up and e!en ga!e away <orld $up tickets as pri"es <ith the official sponsors again ob5ecting to this) #$$ was forced to sue #ndian corporates that used such marketing campaigns #$$ sued Britannia for launching its high profile `Britannia hao! World Cup "ao# %a .indi phrase literally meaning 1Eat Britannia) ,o to the <orld $up3& campaign for promoting its products #$$ claimed that any company) which was not an official sponsor) could not use the <orld $up e!ent in any way to promote its products #$$3s legal action put the marketing game plans of many companies in 5eopardy Exhibit I: Various Forms of Ambush Marketing Advertising Spend: This is of the most widely used ambush marketing techniques. In this type of ambush marketing, an organization increases its ad spend drastically during a particular event, thus sidelining the official sponsor. During the 1 !" #os $ngeles %lympics, &ike signed up many famous athletes such as 'arl #ewis and (ary Decker and featured their portraits along with images of &ike shoes on billboards along the roads leading to %lympic stadiums all over the city. 'onverse, &ike)s competitor and the official sponsor of the %lympics was not as visible as &ike. $ccording to a consumer poll, many people identified &ike instead of 'onverse as the official sponsor. Deliberate Promotion* In this technique, an organization launches a deliberate promotion targeted towards the event, which gets noticed and registered by consumers. +or e,ample, in 1 -, .eneral (otors scored over the official sponsor Toyota in terms of brand recall by promising a .olden /olden car to all gold medal winners. eing Suggestive: In this technique, the ambush marketer)s advertisements suggest to the consumer that it may be the official sponsor. During the 1 " 0inter %lympics, $merican 1,press cards launched a campaign stating, 2If you are traveling to &orway this winter you will need a passport but3you do not need a visa.) $s a result, around --4 of the respondents of a consumer poll identified $merican 1,press as the official sponsor instead of 5isa. lo!k "ut* In this technique, a rival company blocks the official sponsor from 2being visible). In the 1 6 7arcelona %lympic games, though 8eebok was the official sponsor of the 9: 7asketball team, &ike sponsored the individual players3(ichael ;ordan and 'harles 7arkley

who came to the podium by covering the 8eebok logos on their tracks with the 9: +lag due to their personal obligations with &ike. This led to blocking of visibility of 8eebok in the tournament. Pulling Stunt: 2.uerilla), 2:tunt) or 2In <our +ace) ambush marketing can be defined as a low= cost promotion involving a small number of individuals who act as planned by the ambush marketer to attract the attention of people. +or instance, during the 1 - $tlanta games, &ike supplied thousands of flags to viewers who came to watch the event in stadiums. These viewers waved the &ike flags whenever a T5 camera moved across. This turned out to be one of the best spontaneous advertisements. $dapted from www.managinggip.com TVS had also planned to use <orld $up tickets as promotional tools $ommenting on the dispute) .arish ;rishnamachar) .ead) >arketing) TVS) said) I2s # understand it) we cannot use the <orld $up logo or refer to it in our communications But we can certainly send people to the world cup #f that was not permitted) then we should ha!e been told when we were buying the ticket packages I 2ccording to reports) TVS e!en sought legal ad!ice for ascertaining whether it had !iolated any anti*ambush marketing clauses when it ga!e away tickets to consumers $ompany sources re!ealed that its legal counsel had cleared TVS3 stand since the agreement between the #$$ and the official sponsors was not made public and they did not know the exact clauses of the agreement #n October '((') the South 2frican ,o!ernment passed an anti*ambush marketing law) according to which) parties !iolating ambush marketing clauses may ha!e to pay huge fines orCand e!en suffer imprisonment $ommenting on the gi!ing away of <orld $up tickets by some companies) #$$ said that the country3s cricket go!erning body) Bnited $ricket Board of South 2frica %B$BS2&) had the right to stop people holding such tickets from entering the stadium B$BS2 announced that ticket packages clearly specified that tickets were not allowed to be used for marketing acti!ities #n #ndia) B$BS2 had subcontracted ticket sales to Edusport) Sachinam and SOT$) who had further subcontracted the ticket sales to their agents Sources at <orld Sport Gimbus) which sold the sponsorship rights for the <orld $up) claimed that they had gi!en clear directions to these agents) barring them from selling tickets to corporates .owe!er) this was denied by the agents) who stated that the #$$ agreement only stated that the 1packages were not to be used for commercial purposes 3 They said that no clause clearly stating that 1the ticket packages could not be used for 5oint marketing or ambush marketing3 was present in the agreement #$$3s ob5ection to the sale of tickets to corporates put the agents in a tight spot 2round @6*@AE of the tickets sold by agents were bought by corporates 2ccording to a >umbai*based agent) of the D(( tickets he had sold) around :(( tickets were bought by .industan +e!er +imited for gi!ing away to retailers on the basis of their trade*based performance $ommenting on the issue) person working in -hilips #ndia3s marketing department said) IThere was no such clause when we bought the tickets Only now ha!e we been told about it Does the #$$ think we would buy :(( tickets for charityKI// <ith no specific definition of ambush marketing under #ndian law) companies could easily argue their case against #$$ 2nalysts stated that Britannia could argue that it was not ambushing anybody) as there were no biscuit makers in #$$3s list of official sponsors Luite a few media reports mentioned that the #$$ did not ha!e a strong case against Britannia) -hilips and Samsung This was so because the contract between #$$ and the official sponsors was confidential and other companies had no way of knowing its details .owe!er) Gimbus sources stated that companies were told of the ambush marketing clauses earlier itself and they also added that #ndian companies did not pay attention to the warning issued by Gimbus $ommenting on the attitude of these companies) a manager at Gimbus said) I# had warned both .++ and Britannia # told them the new restrictions would make it !ery hard for them to carry on business as usual during the <orld $up) that the B$BS2 has the power to deacti!ate all the tickets and 5ust refund the money to the companies But) they 5ust ignored me I

2s expected) #ndian cricketers stood by their companies and announced that they would not sign the players3 contracts for the <orld $up $ommenting on this) ;umble said) I#t was a ?uestion of principles <e already ha!e existing contracts with our sponsors 2s a matter of ethics and principle) we did not want to breach the contracts I #$$ held discussions with B$$# and ;umble on the matter and) surprisingly) again announced concessions for #ndian players to enable them to participate in the <orld $up The council reduced the one*month lock*in period to only fi!e days The imaging clause) which enabled official sponsors to use images of players for six months) was reduced to three months #$$) howe!er) refused to offer any #ndia* specific concessions)/' as reported earlier and said that if B$$# failed to honor the agreement) it might ha!e to face claims for huge compensation that might arise from the sponsors #n an emergency meeting) B$$# re5ected #$$3s offer and declared that it would support #ndian players and announce the team for the <orld $up at the end of December '((' #n early =anuary '((4) in a surprise mo!e) the Dalmiya resigned from the #$$ $ontract3s Board/4 and ga!e his full support to #ndian players #n the same month) in another surprising de!elopment) the #ndian players e!entually signed the players3 contract The players) howe!er) insisted that their acceptance was conditional and claimed that certain clauses were still unacceptable to them 2 senior player in the #ndian s?uad said) I<e ha!e not accepted the player3s terms in its entirety $ertain clauses are still unacceptable to us and now it is up to the #$$ to sort things out I )ho )ill )in the Match* #n =anuary '((4) the contract row took a new turn when G;- Sal!e %ex*B$$# president&) Siddhartha Shankar Ray %former ambassador to BS&) ;apil De!) >adan +al %former test cricketers&) Ram Babu ,upta and Shyam ;umar Bansal %former test cricket umpires& filed a -ublic #nterest +itigation %-#+& against #$$ The -#+) filed in the Delhi .igh $ourt) accused #$$ of imposing !ery strict and unreasonable conditions on #ndian players They opined that since #ndia generated around A(E of the re!enues for the game) #ndian players should be gi!en special concessions as far as the ambush marketing clauses were concerned The -#+ also sought a ban on the release of foreign exchange to #ndian sponsors if #ndian players were dis?ualified from playing in the <orld $up The petitioners appealed the court to direct the cricket bodies and the official sponsors to find an early solution to the problem #n mid*=anuary '((4) the court issued notices to #$$ and its marketing arm #$$ De!elopment #nternational %#D#&) B$$# and also the Reser!e Bank of #ndia Gotices were issued to sponsoring companies -epsi) .ero .onda) +, Electronics) Gimbus) TVS) $oca*$ola) Sahara and Samsung >edia reports had time and again highlighted the fact that #ndia was the biggest re!enue source for the <orld $up and that the #$$ could not afford to continue battling #ndian cricketers .owe!er) the issue of the legality and use of ambush marketing needed to be addressed Some experts suggested pressuri"ing the B$$# to adopt democratic procedures and introducing the contract system as in 2ustralia and England #n late =anuary '((4) the Delhi .igh $ourt in its 5udgment directed the ,o!ernment of #ndia) the $entral Bank) and the Reser!e Bank of #ndia %RB#& to withhold release of foreign exchange to #$$ neither as sponsorship money nor penalty paid by B$$# to it due to claims arising out from sponsors >eanwhile) #$$ agreed to allow #ndian players to participate in the <orld $up .owe!er) this decision was announced with a condition that #ndia3s share of tournament money would not be released until the issue was resol!ed #$$ also mentioned that compensation claims arising from sponsors due to altered contracts should be honored by B$$# 9ailure to honor such claims would lead to B$$#3s suspension from #$$ >eanwhile) the issues of cricket sponsorship) celebrity endorsements and ambush

marketing continued to haunt the !arious companies in!ol!ed $ommenting on the fact that none of the parties seemed to be bothered about what mattered the most) the spirit of sportsmanship and healthy competition) a high*le!el negotiator between the companies and the #$$ said IBnder the #$$ and B$$# shadow) the #$$3s sponsors and sponsors of the #ndian cricketers are fighting a battle for money I $he author is a %aculty &ssociate at IC'(. *eference#

). %alconer * (ussell! +mbu#h Marketin$ and %o, to +void it, www.geocities.com! +ecember ),,-. .. /ubramanian 0itya! Cricket a# +l,a(# i# -op Scorer in *atin$#, Business +ine) "une 1! .22.. 1. Cri#i# in Indian Cricket, www.cric3etne4t.com! &ugust )1! .22.. 5. Indian .la(er# /ef( ICC0 *efu#e to Si$n Contract#, www.rediff.com! &ugust )-! .22.. 6. $hawfee7 /aadi! ICC and +mbu#h Marketin$, www.cric3et.org! &ugust )8! .22.. -. 9iswanath :! .la(er#, ICC Stand 1irm, The .indu) &ugust ),! .22.. 8. :hosh ;artha! Corporate# +mend Contract# ,ith Cricketer# +fter ICC *o,, www.rediff.com! &ugust .2! .22.. <. -op Cricketer# in 2-eam Sam#un$3-o Endor#e .roduct *an$e, Business +ine) &ugust .2! .22.. ,. ;anic3er ;rem! +mbu#h Contractin$, www.rediff.com! &ugust .)! .22.. )2. ICC -roph( 4o(cott -hreat "ro,#, www.dawn.com! &ugust ..! .22.. )). India3# +d Men 1ear Ma##ive &o## in Cricket *o,, www.icric3eter.com! &ugust ..! .22.. ).. +as :upta /urajeet! Bansal /huchi! Cricket5 1MC" 1irm# 1i$ht to Keep *ival# off the 1ield, www.rediff.com! &ugust .5! .22.. )1. ICC to Meet Indian .la(er# -oda(, www.cric3et.org! /eptember 5! .22.. )5. aushi3 0eha! +ll +bout +mbu#he#, The $atalyst)

/eptember 6! .22..

)6. /en /hunu! +mbu#he# a 6ar -actic, Business +ine) /eptember 6! .22.. )-. :upta 9i3rant! ICC, .la(er# Ki## and Make 7p0 8o, /almi(a ha# to Sa( I do, too, www.indiane4press.com! /eptember 8! .22.. )8. 7nhapp( Indian Spon#or# *efu#e to .la( 4all in *o,, www.thatscric3et.com! /eptember ).! .22.. )<. /hariff %aisal! Inte$rit( ,a# the I##ue0 8ot Mone(, www.rediff.com! /eptember )1! .22.. ),. +as :upta /urajeet! + Ca#h %at -rick, Business Standard) /eptember .<! .22.. .2. &nanthanarayan 0! ICC to *evie, /i#puted .la(er Contract -erm#, www.in.sports.yahoo.com! =ctober )! .22.. .). Chhaya. '! .ep#i, &" Claim /ama$e# from "CC over Contract I##ue, www.rediff.com! =ctober .! .22.. ... /ingh &jay! -he 4u#ine## of Cricket, www.cric3et>online.org! =ctober )8! .22.. .1. 6orld Cup +mbu#h Marketin$ Could Mean 'ail -erm# - ICC, www.cric3et.org! +ecember -! .22.. .5. +mbu#h Marketin$ Could &ead to 'ail Sentence#5 ICC, www.indiane4press.com! +ecember 8! .22.. .6. (ajshe3ar '! 4o,led b( a "oo$l(, Businessworld) +ecember ,! .22.. .-. ICC Make# 1inal 9ffer on Contract# to 4CCI, www.rediff.com! +ecember ),! .22.. .8. Chhaya '! 4CCI *e:ect# ICC 9ffer, Call# E"M, www.rediff.com! +ecember .2! .22.. .<. Welsh "erry! +mbu#h Marketin$5 6hat it i#, 6hat it i#n3t, www.poolonline.com. .,. /harma ;riyadarshini! +mbu#h Marketin$, www.indiainfoline.com. 12. www.cric3et.org. 1). www.isport.africa.com. 1.. www.rediff.com. 11. www.cric3etne4t.com. 15. www.cric3et>online.org.

16. www.icric3eter.com. 1-. www.indiane4press.com. 18. www.thatscric3et.com.

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#$$ is the go!erning body for the affairs of international cricket

B$$# is the go!erning body of cricket in #ndia and reportedly one of the richest go!erning bodies of cricket in the world
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2mbush marketing can be defined as 1an organi"ation becoming an unauthori"ed part of an e!ent at the expense of the ri!al company3s association with that e!ent 3 $onsidered to be a part of competiti!e marketing) ambush marketing aims at increasing brand awareness and differentiating oneself from competitors
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2n international organi"ation that represents players from !arious cricket test match playing countries
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Tele!ision Rating -oints %TR-s& are tools based on sur!eys that measure the success of a TV channel in terms of the popularity of its programs -rograms with high TR-s attract ad!ertisers and !iewers alike $ricket matches happen to be !ery popular in many countries and attract high TR-s Thus) companies stand to gain a lot by airing their ad!ertisements during the matches e!en though they incur hea!y expenditure doing so
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$ountries that were earlier under British rule are called commonwealth countries

The official sponsors) -epsi) +, Electronics) .ero .onda and South 2frican 2irlines were gi!en the commercial rights for all #$$ tournaments till '((6) for BS 7 88( mn
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Samsung signed se!en #ndian cricketers %Dra!id) V Sehwag) 2nil ;umble) .arbha5an Singh) =a!agal Srinath) Dinesh >ongia and 25ay Ratra& as its brand ambassadors for the high profile 1Team Samsung3 campaign The company planned to spend Rs 48( mn during '(('*(4 for cricket ad!ertising
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#n =anuary '((4) Rs :A e?ualed / BS 7 .owe!er) Sahara remained as the #ndian team3s sponsor Reportedly) -hilips later on decided not to distribute these tickets

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The #ndia*specific concessions allowed Tendulkar and Virender Sehwag to endorse companies that were in conflict with official sponsors during the tournament) except when #ndia was playing a match
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#$$ <orld $up $ontract Board was constituted to negotiate the <orld $up contracts
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Case A+A,(S S Sports Sponsorship *The 1$ricket3 2mbush >arketing Dispute - Kinnera Murth( #n war) as in marketing) winning matters The success of ambush marketing is by itself a case for ambush marketing The crisis mentioned in the case was ine!itable) considering the

fact that this was not the first time that such an incident had taken place The #$$ chose to protect its own interests well in ad!ance and therefore the blame lies s?uarely on the B$$# for not informing the players about the terms agreed to by them #n most international agreements) #ndians fail to do their homework) take legal counsel and be transparent The #$$ has been more transparent and forthcoming on its !iews on resol!ing the crisis) but the B$$# typically chose a ham*handed approach and decided to hunt with the hounds and run with the hares -erhaps) being in the riding seat of selecting the team ga!e B$$# this confidence .owe!er) they could not gauge the strength of the celebrity status of the players or the fierce reaction of the sponsoring companies The problems were further compounded by the support of international cricketers to their #ndian counterparts born out of a sense of camaraderie) as well as their own interests in #ndian company sponsorships <hile in this particular incident) we may well blame the B$$#) in the larger !iew of the current and emerging marketing en!ironment) #$$ has to share the blame as wellit has not read the market) nor understood its changing trends +et us take a peek into the changing market of cricket sponsorships $ricket is touted to be a gentleman3s gameJ this sentiment rubbed off on sponsorship too) earlier Sponsorships stood to support a good cause o!er and abo!e the commercial interests and therefore) companies which were more inclined towards image marketing as good corporate citi"ens %and those which were generously endowed&) lent a 1supporting3 hand to sports There was no problem with the model as long as the fi!e*day tests between two countries continued in a leisurely world #t took little time) howe!er) for other companies to reali"e that behind this do*good image marketing and corporate philanthropy were the foundations of sound business logic which ga!e better returns in terms of impacts and sales for lesser amounts %in initial days& They circum!ented it with the ad!ent of increased tele!ision !iewing) with ad!ertisements during the breaks This form of ambush marketing was far more successful than the official sponsoring of the matches #n fact) the only mileage the match sponsors got was the opportunity to display their hoardings at the boundary) which did not attract much audience attention The runaway success of the non*sponsors for many years now) should ha!e prompted the e!ent marketers and match organi"ers to focus on high attention*getting mediaCitems E!er since the onset of cricket 1Olympiads3 and One Day #nternationals %OD#s&) traditional boundaries and audience sets were shattered E!en for local marketing) a 1global scale3 became imperati!e <ith this) the competition for garnering audience attention gained speed $ricket thus became a global industry with global le!el brandingCmarketing becoming a distinct possibility The emergence of the <orld $up sponsorships by indi!idual conglomerates like -rudential) globally and our !ery own Reliance $up %not to mention of the threat of the -acker series&) and the mileage that they got for their businesses by focusing on star cricketers) opened up the !ast potential of money in cricket <orld $ups became money*spinning marketing e!ents and a threat to the #$$) in terms of its primacy in holding the world championships #$$ rose ?uickly to ward off the threat by increasing the attraction to players in terms of returns from the tournaments and in turn sold this to sponsors for mega bucks The tournaments therefore started attracting the best teams and the best players and took the sheen off the two*country test matches The #$$ and the players grew richer and e!en non*playing countries started to seriously look at this sport because of the money in!ol!ed The following changes ensued o!er the years0 Sponsorship rates increased astronomically) making it un!iable for non*global scale companies to participate meaningfully 2mbush marketing was the natural result $ould the #$$ ha!e taken into account the target markets and their needsK

2s long as the #$$ and the <orld $up were the ma5or brands) they could rule the players <ith the ad!ent of brand status for the players themsel!es) it is the case of the creator unable to leash the 9rankenstein The mix of indi!idual brands) the #$$ and the <orld $up) not to talk about the participating cricket boards) particularly the host board) leads to a cacophony of decisions regarding sponsorships $ompanies are taking full ad!antage of this undefined arena of 1space3 and resorting to ambush marketing $atch them if you canF 2fter all) in today3s boundaryless world dictated by cyberspace) there is little anybody can do to exert territorial rights The loss of control appeared to be more threatening to the #$$ and B$$# more than the actual marketing issues .owe!er) the #$$ was ?uick in asserting that they did not want the B team as a means of 1teaching a lesson3 to the cricketers) for it reali"ed the marketing worth of an 2 class team for its $up The discussion should be on identifying packages of comfort for all kinds of sponsors where ri!al brands can coexist on the same platform #n almost all other media channels) there is no exclusi!ity One possible answer therefore is to look at a host of acti!ities that are e!ent*related and seek rights on all of those) a la Disneyland The other is to look at lower rates of sponsorship while increasing the items of sponsorship to minimi"e damage to indi!idual companies on account of the otherwise exorbitantly) hea!y in!estments and the 5ust demand for protection and exclusi!ity Exclusi!ity in a global world with a ma5or increase in the number of companies clamoring for a piece of the cake) is a losing proposition The other ma5or change that many failed to read is that) #ndia as a market has been recogni"ed as ha!ing high potential by many corporates and) cricketers) apart from film stars) offer the biggest attention pro!iding and endorsing opportunities for companies The mistake that both #$$ and B$$# made is in underestimating not only this degree of celebrity status of the #ndian cricketers) but also of the other countries3 cricketers who ha!e a stake in the ad!ertising moolah of #ndian companies There was also a failure to recogni"e the emergence of nontraditional methods of audience attraction The traditional method of sponsoring mega e!ents on the stadium itself has serious drawbacks in the face of the much larger audience of the tele!ision) as well as the global li!e audience at the stadium) to whom off stadium exposure to ad!ertisements would be more attracti!e $oming to the sponsoring companies themsel!es) they seemed to take agreements as sacrosanct and failed to protect their flanks E!en in war) BG resolutions also appear to ha!e lost teeth) then how can agreements in the business arena be far behindK #t is time to take stock and anticipate surprise mo!es of competitors rather than rely on 1gentlemen3s3 agreements 9or the ambush marketing companies) it beho!es well to know that surprise mo!es lose the surprise element after the initial parleys #t is also a moot point if they would be able to enforce the clause of non*endorsement of ri!al brands for longer periods of time 2 battle won resoundingly now) may itself lead to another battle in the same coin -layers may well insist on shorter term exclusi!ity to endorsements %is it greed mas?uerading as patriotismK <hat principles are the players talking aboutK& #n any case) the grand old days of panoramic ad!ertisement expenditure are gone The situation today is that of capitali"ing in the shorter term and being more e!ent* specific than e!er before The ?uestion is how to integrate domestic contractual agreements made by indi!idual players with the international ones made by the e!ent marketers) that is) the #$$ The #$$) the sponsors and the players need to think through the ownership issues and come together with an integrated marketing plan where all interests will be protected > $he author is a %aculty at &dministrative /taff College of India! Bellavista Campus! *yderabad.

Sports Sponsorship0 The 1$ricket3 2mbush >arketing Dispute * Dr. Harsh Verma One side of ambush marketing is indeed creati!ity Two ambush campaigns that were recei!ed !ery fa!orably were the ones by 2merican Express and -epsi #n the /@@: <inter Olympics) 2merican Express could manage to get high recall against the official sponsor Visa by its ingenious campaign 1#f you3re tra!eling to +illehammer) you3ll need a passport) but you don3t need a !isa3 Similarly) great media attention and mileage was deri!ed by -epsi in the /@@D cricket <orld $up by its highly creati!e and much*appreciated campaign 1Gothing Official 2bout #t3 2ll the ad!ertisements in this series poked fun at the official sponsor and the humor contained therein ensured easy cogniti!e processing and effecti!e top of the mind recall ,oing by the experiences so far) ambush marketers ha!e exhibited exceptional creati!ity to achie!e marketing gains without ha!ing to pay exorbitant amounts as sponsorship fees On the surface) the really creati!e ambush attempts were able to break through the clutter #n the abo!e two cases %-epsi and 2merican Express&) the ambushers were able to get audience attention) brand recall and product off*take as good as the official sponsors This surely stands out as a great ad!antage 9or instance) a sur!ey done a little after one month of 2tlanta Olympics in which people were asked to name companies associated with the e!ent) re!ealed that 8:E people associated 2merican Express with the Olympics and 6'E named Visa 9or 2merican Express) the ambusher) it was ?uite a feat) that too) without spending as high as 7:( mn for the sponsorship -rima facie) there is little doubt that ambushes of these kinds are ad!antageous because the marketer is able to achie!e much for little But the efficacy of acti!ities of this nature needs to be addressed within the background of the larger legal framework Being creati!e is fine) but it should be 1honest creati!ity3 without in!ol!ement of any contra!ention of the spirit of 5ustice and e?uity #n a situation where a company is not the 1official3 sponsor) it does not ha!e rights to legally associate itself with the e!ent in ?uestion Luite naturally) it has to largely bank upon its creati!e 5uices) sadly) at the cost of the official sponsor #n such situations) unofficial sponsors use a number of ways such as e!ent broadcast) sub*categories sponsoring) or simple tactics like getting the spectators to wear caps) or hold banners) or wear shirts The whole idea in ambush is to somehow create an impression in the minds of people that a specific company is associated with the e!ent #n the marketing communication parlance) the whole idea of an ambusher is to 1classically condition3 the prospects) that is) the -a!lo!ian dog) to associate the company3s products or ser!ices with the e!ent by the process of proximity building Therefore) the ambusher tries to establish links with anything that is connected with the e!ent) and thereby creates the impression of its sponsorship or exploits the audience base by reaching out to them There are two sides of creati!ity One side is the campaign de!elopment and execution by the ambusher The key for a successful ambushing strategy is to somehow take mileage out of an e!ent that is not sponsored by the marketer Gaturally in this situation) one really needs to exploit the depths of imagination and achie!e which the legitimate sponsor accomplishes) by in!esting millions of dollars or rupees The real test of this creati!ity would be to accomplish this feat without indulging in any kind of infringement of rights of the sponsor and the e!ent organi"er #f an e!ent really possesses !alue that can be le!eraged by marketers) it naturally becomes an issue of interest for marketers #t is on this model that the exclusi!e rights to use an e!ent are granted Sports organi"ations rely on the sponsorship money collected) to further their ends and at the same time) the sponsor3s interest lie in its ability to use the e!ent exclusi!ely There is no conflict in!ol!ed in this type of agreement Thus) any attempt) no matter how creati!e) that seeks to circum!ent the spirit of law) would be called creati!e in the real sense $reati!ity should work in ad!ertising idea generation) campaign planning and execution and organi"ation of other promotion acti!ities that do not infringe the rights of the sponsor The second side of creati!ity is that one tries to 1by pass3 or 1take undue ad!antage3 by de!ising creati!e responses at the cost of somebody #n this context) the spirit of law is undermined .ere) one tries to le!erage the goodwill or reap ad!antage that comes with the association of an e!ent like Olympics or $ricket <orld $up or Soccer This is clearly the 1dark side of creati!ity3 $reati!ity cannot be a means to get 1un5ust enrichment3 The right of the official sponsors need to be protected otherwise the e!ent itself may suffer in the long run The #$$ is the central go!erning body of world cricket) which decides the allocation of sponsorship rights for cricketing e!ents held under its auspices 2lthough the B$$# is being portrayed as the main culprit for the current impasse) such an assumption would be rather unfair The deadlock could ha!e been a!oided

if the players and their respecti!e boards would ha!e taken into cogni"ance) the !arious terms and conditions of the contract #t seems that #$$ was in a hurry to sign the contract) without analy"ing the ob!ious ramifications of the contract The B$$# also failed in its responsibility to guard the interests of the cricketers since it did not inform the players in time) about the contro!ersial clause in the contract #t can be argued that players who ha!e !ery short*li!ed careers would want to maximi"e their earnings during this span of time Therefore) the clauses of the contract) instead of facilitating the interests of the players) ended up doing exactly the opposite $ricket is a religion in #ndia and cricketers en5oy the status of demigods The commercial success of modern day cricket is largely due not so much to its popularity among the miniscule population of the de!eloped worldbut to the immense popularity it en5oys in the #ndian subcontinent Go wonder then that corporates make a beeline to seek the endorsement of these superstars for their products #t is therefore rather ironic that the #$$ did not take the representati!e of the #ndian players) that is) the B$$#) into account while drawing up the contracts #n !iew of this) although it is GOT feasible to grant special rights to any one country) the #$$ should ha!e at least consulted the B$$# during the initial phases of the negotiations The author is a 9aculty at 9aculty of >anagement Studies %9>S&) Gew Delhi Sports Sponsorship * The 1$ricket3 2mbush >arketing Dispute Anin&$a Ro$ Sports e!ents pro!ide golden opportunities to not only the players and the participating teams but also to companies seeking to make a global impact on their audiences Some companies in!est millions of dollars to secure exclusi!e sponsorship rights for these sport e!ents 2 sponsorship contract in!ol!es a commercial transaction to transfer defined rights) either exclusi!ely or 5ointly) to a purchaser #n a typical sponsorship package) the sponsor might buy !arious rights including e!ent title or category rights such as official soft drinks) signage rights) rights to specific designated emblems and logos) rights to use the word 1official)3 rights to specific e!ent ad!ertising) promotions and publication inclusions and certain first*option rights $ompanies sponsor sporting e!ents as they get marketing platforms to increase audience awareness and unparalleled opportunities to reach mass audience #t also helps them enhance the image of their products and a!oid the existing ad!ertising clutter 2s a result) sports sponsorship has de!eloped into a significant corporate communication strategy So) when #$$ sold sponsorship rights for all the matches to be held between '(('*(6) companies such as .ero .onda) +, Electronics) -epsi and South 2frican 2irlines bought it by paying millions of dollars These companies aimed at benefitting financially by communicating with a large section of consumers in the #ndian subcontinent %#ndia) -akistan and Sri +anka& on a single platform) where cricket is treated as a religion and has attracted people cutting across boundaries of sex) age) religion and region ,ood return on in!estment can be achie!ed only if the sponsoring companies get exclusi!ity <ithout exclusi!ity) the !alue of sponsorship gets diminished $ompetitors of the sponsoring companies also !iew these sporting e!ents as ma5or opportunities to raise their brand !alue But primarily due to lack of financial power) they are unable to buy the sponsorship rights #B>3s sponsorship of the /@@D Olympics in 2tlanta was meant to showcase #B>3s ad!anced technology) by deli!ering instant information .owe!er) #B> failed to do so) which created a worldwide negati!e publicity for the company The failed companies resort to ambush marketing) a terminology that has its genesis in military warfare #n marketing terminology) ambush marketing refers to an effort by an unauthori"ed party to appropriate the goodwill of an e!ent) at the expense of another company3s association with the e!ent 2mbush marketing is done at two le!elsJ on*site and in the media #n on*site ambush marketing) companies promote their productsCser!ices at the e!ent !enue and in the surroundings) while in media ambush marketing) companies resort to sponsoring scrolls) logos through media %TV) radio and press& #t benefits the companies in two ways 9irst) it has a !ery high return on in!estment The amount companies spend to promote their productsCser!ices at the e!ent !enue and in media is pittance compared to that of the official sponsors Second) it undermines the sponsoring companies3 branding efforts by stealing attention) weakening the impact of a sponsor3s exclusi!ity and confusing the !iewers #n case of cricket) TV !iewership during cricket matches is !ery high in the subcontinent 2s a result) the main sponsor3s exclusi!ity gets

diminished and they fail to get the expected return on in!estment %a case in point is the /@@D $ricket <orld $up) when -epsi3s 1Gothing Official 2bout #t3 campaign 1ambushed3 $oca*$ola) the official sponsor& The success of ambush marketing prompted companies to pursue it in a big way during the $hampions Trophy in '((' and before the <orld $up held in '((4 Britannia launched its high profile campaign for promoting its products Others such as TVS) which is official sponsor .ero .onda3s direct competitor) planned to use <orld $up tickets as promotional tools But a ma5ority of these companies cashed in on the image of the #ndian cricketers >ost of the leading #ndian cricketers are celebrity endorsers for these companies The e!ent organi"ers and corporate sponsors regard ambush marketing as an unethical and illegal practice) as it threatens an e!ent3s integrity E!ent organi"ers ha!e the opinion that if ambush marketing is left unchecked) it has the potential to destroy sponsorship and would erode the re!enue base of sporting e!ents $orporate sponsors see ambush marketing as a threat to the return on their in!estment from the sponsorship package they ha!e purchased The ?uestion arises whether ambush marketing is legal or ethical 2ccording to =erry <elsh) who was the first to resort to ambush marketing when he was the global marketing chief of 2merican Express during the /@A(s) it is 1ethically3 correct #n his !iew) ambush marketing 1is a by*product of the inflated prices brands are asked to pay for high profile rights packages) and of intense competition between brands for consumers3 attention 3 .e also argued) I#f in!enti!e nonsponsors mine the sponsored thematic space in a cle!er way) the public may come to think of them as an official sponsor That is a testament to their marketing skills I Only when there is any actual deception or an unauthori"ed use of a registered trademark) logo or slogan) is when the ambushers ha!e !iolated the law But in the four clauses mentioned in the case) nowhere is it mentioned that #$$ has protected the words <orld $up) cricket and other fre?uently used words associated with cricket <orld $up) and hence the unofficial sponsors would not be allowed to use #n addition) in the case) it is mentioned that neither #$$) nor <orld Sport Gimbus) which sold the sponsorship rights for the <orld $up in #ndia had made public the agreement that had taken place between it and the official sponsors 2s a result) the nonofficial sponsors did not know the exact clauses of the agreement #t is indeed a tricky task to stop companies from trying to ambush an e!ent 2 marketing spokesperson for a company commented) I2mbushes will happen) and it is your own fault if you do not come through loud and clear that you are a sponsor I .owe!er) there are ways by which organi"ers and corporates can limit the opportunities a!ailable to the ambushers 9irst) the e!ent organi"ers should own all the intellectual property rights such as trademark registration of names) logos) slogans) copyrights of pictures of the mascots) theme songs associated with an e!ent and they should ensure that these rights are properly licensed to the official sponsors Second) they should control the broadcast rights to secure all ad!ertising space within the city limits of the e!ent) for the period of the e!ent Third) contracts should be used to ensure that sou!enirs and billboards on*site and near !enues of the e!ents are tightly controlled 9ourth) organi"ers need to minimi"e the number of sponsorships categories and maintain consistency in these categories 9ifth) instead of spending money in hunting and punishing the ambushers) organi"ers should use that money to promote the official sponsors and educate the consumers about the role of the sponsors in supporting the e!ent The author is a 9aculty 2ssociate) #$92# -ress Reference M /:*(4*(:*(8