Nike-BCCI deal could be in troubled waters
Sept. 29: Mahendra Singh Dhoni and Co. will soon be seen sporting a brighter and bolder shade of blue with the official apparel sponsor of the Indian team Nike making sweeping changes in the current design. The new kit has been launched with the 2010 World Cup in mind, despite the fact that the sports goods giant’s five-year deal with the Board of Control for Cricket in India is coming to an end in December.
No new deal has been signed, maintains the BCCI, but Nike managing director Tarun Puri said that it was in talks with the board, and was confident of a landing another five-year deal. “We are in discussion with them, and hopefully we’ll get an extension,” Puri told this paper. Nike Inc. had signed a record-breaking `197-crore deal with the board’s then vice-president and marketing committee chief Lalit Modi in 2005, according to which the Indian team would have to display the company’s logo on their clothing from January 1, 2006 till December 31 2010, except on the bat.
However, the two parties have fought ever since, Nike having dragged the board to court in 2007 for a compensation claim of up to $1.2 million. Even though the BCCI hushed up the matter and settled it out of court for an undisclosed sum, it has taken exception to Nike’s claim that Indian players, Sachin Tendulkar in particular, displayed logos of its rivals Reebok and Adidas on their gear and casual wear.
Board sources say Nike is yet to cough up `2.74 crores as part of royalties, and unless the outstanding amount is cleared no deal will take place. “The finance committee has been overhauled, so that delays the matter even further. At the moment, the deal is set to expire on December 31 this year.”
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