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MUMBAI/BANGALORE: Is the controversy surrounding the Commonwealth Games (CWG) scaring off sponsors? Though PSUs like NTPC and PowerGrid Corporation are threatening to pull out of the games, private sector companies so far seem to be the torchbearers for the event.

With the government on Thursday giving fresh assurances to control the damage, a section of corporates believes that the controversy could, actually, have a positive rub-off effect on the popularity of the games.

Venugopal Dhoot, chairman, Videocon Group, said, “The regular media coverage on the controversies surrounding the CWG has created public awareness on the games, which were hitherto not very popular. We have decided to spend on advertising for the commonwealth games.” Videocon Group spends a couple of hundred crores on advertisements every year. The diversified consumer television manufacturer-to-mobile operator has been sponsoring various sports events such as cricket, tennis and boxing since 1991 when it first sponsored the Asia Cup Cricket.

Media buyers pointed out that even in the past, cricket, movie launches and other events have benefited from controversies. This was seen last year when the popularity of IPL went up after Harbhajan Singh slapped Sreesanth. Similarly, India-Australia series in 2008 benefited from the verbal duel between Andrew Symonds and Harbhajan. “As we near CWG and the confidence builds up, more advertisers will look at it as a great opportunity. In terms of ratings, I am sure that the controversy will aid in taking the viewership up,” said Nandini Dias, COO, Lodestar, a media agency.

Clients like Hero Honda, Coca-Cola and Airtel have already tied up for CWG sponsorships. International rights and ground rights, too, have been tied up. As to whether the official beverage partner for CWG was still continuing with its sponsorship, a Coca-Cola spokesman said, “Our partnership with CWG is an extension of the company’s focus on promoting healthy, active living for people and also to build social cohesiveness by using sports as a vehicle. We have been associated with several sporting events globally and in India. Our plans for CWG as its beverage partner is intact.”

What Coca-Cola gains by associating with CWG is the opportunity to refresh more than 8,000 athletes and delegates, and more than 30,000 volunteers who will take part in the games. The global beverage maker believes that the New Delhi CWG will be a platform to promote sporting culture in the country and help catapult India into the league of prominent sporting nations. “The games are an important vehicle in helping us continue to connect consumers to our brands,” said the Coca-Cola spokesperson.

That’s not all. Companies are also seen going strong on celebrity endorsements, backing CWG sports participants. For instance, Saina Nehwal, the world No. 2 badminton player, has been approached by over 10 companies, including multinationals, for endorsement. Sports celebrity managers who TOI spoke to said that none of Saina’s deals have been affected by the CWG controversy.

PSUs said to be still backing the event include the Air India Indian Railways, and Central Bank of India. Said an Air India spokesperson: “Since we are the official airline partner, there is no cash outflow. We will only be carrying the delegates and athletes to the event and their tickets are free.”

An NTPC official told TOI: “After all hell broke loose, the company has become apprehensive because NTPC wants the money to be put to good use.”

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This post was submitted by Chinmaya Nayak.