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The scent of a BCCI deal

The scent of a BCCI deal

Author | Source: The Economic Times | Saturday, Aug 26,2006 8:22 AM

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The scent of a BCCI deal

A product licensing deal with the Board of Control for Cricket in India (BCCI) costs 5-10 times more than a similar deal with the International Cricket Council, the global body for the game.

This may be an indicator of the worth of Indian cricket. It's also the 'wrong one' a fragrance company is finding hard to play in negotiations to launch the 'Official Perfume of the Indian Cricket Team'.

The perfume - to be marketed in a golden cricket ball-shaped, virgin metal case imported from Prague - will be priced Rs 3,000 per case and targeted at “anybody with a high disposable income who is passionate about the game.”

It will be the 'Official Perfume of the Indian Cricket Team' if a deal is struck with BCCI, and the 'Official Perfume of the World Cup '07' if the deal is struck with the ICC. But UAE-based perfume maker Fragrance World FZE ostensibly prefers a deal with the BCCI. Later this year, the company is launching its range in India. It is in talks with Kapil Dev and Sunil Gavaskar for a brand endorsement. “But the price BCCI is asking is very high,” says the company's global category manager, Rohit Mittal.

BCCI secretary Niranjan Shah told ET in Rajkot, talks are on. BCCI expects to generate $1.2bn in revenues over the next five years, 70% of which will come from selling TV rights. The rest will come from licensing, on-ground advertising and sponsorships. With the World Cup round the corner, Mr Shah expects contribution from licensing deals to grow.

“We will charge a premium as the money in today's cricket comes largely from India. Nike is paying us $300m in a four-year deal,” he said.

Sources told ET that in licensing deals, the Board charges a percentage of revenues from projected sales of licensed products as fees, which is usually around 5-10 times the fees charged by the ICC. In Fragrance World's case, the deal could include use of the BCCI logo.

Fragrance World, a part of the diversified Global Holding which also has interests in construction, finance and pharma businesses, is setting up 13 sales offices in India and a nationwide distribution network. It is tying up with a Surat-based firm for imports and marketing. “We will also launch a range of mass market products,” Mr Mittal said. The company has, therefore, chalked out a strategy around cricket, given the craze for the game in India.

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