Thursday, February 21, 2008

Soap contract lands Dhoni in soup

State-owned Karnataka Soaps and Detergents Limited (KSDL) has served a legal notice to India’s limited overs cricket team captain Mahendra Singh Dhoni, claiming damages worth Rs 4 million for dishonouring the contractual obligations as brand ambassador for its Mysore Sandal soaps.

KSDL had roped in Dhoni to endorse its Mysore Sandal soaps in January 2006 for a term of two years for a sum of Rs 8.5 million. But, the company terminated the contract and after the star cricketer failed to give them enough time for endorsing its soap product.

KSDL Executive Director Babu Siddakumar told reporters that Dhoni was to have given the company five days each for the two contract years according to the agreement. “But, he has given us only three days out of the ten days required as per the contract. We have been asking for his dates for commercial shoots and marketing events. But, he has failed to abide by the contractual obligations”, Babu Siddakumar said.

The soap company’s contract with the wicket-keeper batsman commenced from January 2006 and was scheduled to end on January 2, 2008. A legal notice revoking the contract with Dhoni and seeking damages from him was issued on December 20, 2007.

KSDL also claimed that the company has already paid Dhoni and his agency Rs 6.4 million out of the contract amount of Rs 8.5 million. The balance amount was to have been paid after Dhoni completes his dates with the company. “We have been releasing quarterly payment to the cricketer as per the contract terms and decided to cancel the contract when we did not get his dates”, Babu Siddakumar said.

During the three days Dhoni made himself available to KSDL, a 60-second commercial advertisement had been produced. However, Dhoni should have made himself available for upto five days during each contract year in order to make personal appearances at clinics, camps, trade shows, retail outlets, autograph sessions and other activities related to marketing of the Mysore Sandal soap, a press statement from KSDL said.

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