In the first deal of its kind, Coca-Cola has acquired a 10% stake in India’s International Premier Tennis League (IPTL), a tournament structured on the lines of the T20 cricket Indian Premier League, featuring players such as Roger Federer and Novak Djokovic, reports The Economic Times.
“The part equity-part sponsorship deal, estimated at about $3 million, is being structured in a way that IPTL title sponsor Coca-Cola’s sponsorship money will add up to 10% equity over a period of time,” an official involved in the developments said. This could stretch over a three-year period.
With declining sales in the west, India is seen as a key growth area for the world’s largest beverage maker contributing 12% to its overall volumes. Industry observers say long-term associations with sports properties are strategic for aerated drink makers and help in establishing them as promoters of healthier and active lifestyles
