PCB may lose sponsorship worth millions (3 November 1998)

3 November 1998

PCB may lose sponsorship worth millions

By Samiul Hasan

KARACHI, Nov 2: The two-decade old sponsorship agreement between the main sponsors of cricket in the country amounting to millions - the Pakistan Tobacco Company (PTC) and the Pakistan Cricket Board (PCB) - has reached a breaking point.

The PTC has written a letter to the PCB telling them either to abide by the contractual obligations or they (PTC) would be forced to terminate their yearly agreement with the board amounting to an estimated Rs. 24.5 on Dec 31, 1998, two years before the expiry of the contract.

PTC sponsors domestic competitions including the Quaid-i-Azam Trophy, Patron's Trophy and National One-day Championship. In addition to this, every international series played in Pakistan is also held under the umbrella of PTC.

The PTC has raised objections to cricket board's decision to promote their competitors - Lakson Tobacco - in cricket stadia throughout the country by allowing them to put on huge posters.

The PTC has also expressed its unhappiness over the board's decision to deny their right (as per the contract) of using the drinks trolley and instead allow Pepsi Cola carry the drinks car.

The sponsors have cited contractual clauses signed by the two parties, which say that the sponsors had the exclusive privilege to display banners, hoardings at the stadia and on television.

The PTC stepped into cricket sponsorship in 1980 when they signed a Rs 800,000 contract with the then BCCP to help the board in promoting cricket in the country. According to the present contract, the PTC are paying Rs 20 million yearly to the board for promoting the game in the country.

Besides, the PTC were paying the cricket board an amount of Rs 4.5 million each year for making the Pakistani players use playing gears promoting their product.

When a senior executive of the PTC was contacted in Islamabad, he neither denied nor confirmed the report that his company was on the verge of withdrawing its sponsorship.

"The PTC is certainly reviewing a change in its communication strategy. But we are unable to confirm or deny (the news) at this stage," he said.

The chief executive of the Pakistan Cricket Board (PCB), Majid Khan, said the contract with PTC was valid till 2000 and will continue till that time.

"We have not violated any contractual clause," he stressed.

Majid said the drinks trolley was taken from PTC and given to the Pepsi Cola with mutual consent. "As far as publicity of Lakson Tobacco is concerned, well, nothing of that sort is in the contract."

He said cricket board's sponsors have been writing to us. "But we are not going to talk to them or anyone through the Press."

However, a spokesman of the PCB reacted sharply to PTC's decision of reviewing their communication strategy with the PCB.

"They (PTC) are trying to put all the blame on us (PCB) before pulling out from the competition. They are the people who surrendered their status as top sponsors on television."

Source :: Dawn (https://dawn.com/)