Headliner - The Anatomy of a Celebrity Endorsement Agreement

By Roshan Gopalakrishna

Over a period of time, celebrity endorsements have been viewed as an effective and prominent marketing tool by many companies. Typically, a public figure would appear in advertisements and promotional material marketing the products or services of a company.

However, the past couple of decades have witnessed the evolution of ‘celebrity endorsements’ into ‘brand associations’, wherein companies look to celebrities as ‘brand ambassadors’ who spread awareness about a brand, rather than merely promote a brand. Celebrity endorsements can usually be classified into:

a. traditional endorsements, which involve a celebrity promoting specific goods, relying on the celebrity’s fame and ability to influence purchase decisions. Kapil Dev’s endorsement of Boost in the late 80s is a classic case of a traditional endorsement that brings a direct link between a professional cricketer and a leading malt-based health drink;

b. co-branding or product placement where two distinct brands come together to create a new co-brand, such as in case of ‘Gatorade Tiger’ range of sports drinks launched by Gatorade while being endorsed by Tiger Woods;

c. licensing, where a celebrity lends his name and attributes to create new products and services. Undoubtedly, the most famous example of celebrity licensing is Nike’s legendary ‘Air Jordan’ brand of shoes and athletic apparel; and

d. joint ventures/equity agreements, wherein the celebrity shares in the profits of a new venture. In 2007, Sachin Tendulkar entered into a joint venture with the Future Group and Manipal Group to launch healthcare and sports fitness products under the brand names 'S Drive' and 'Sach.

This article outlines the structure of a typical celebrity endorsement agreement. It outlines some of the key provisions that ought to be documented and their basis. Ultimately each agreement will likely deviate from this structure and substance based on commercial and other context.
Parties - The endorsement agreement should, at the beginning, clearly identify all parties to the agreement along with their individual/corporate status, any other identifying information and their registered or mailing addresses. This is of particular significance in multi-party agreements that include an intermediary such as an agent, marketing representative or management company which retains certain marketing rights to the celebrity, as this forms the basis for structuring the respective obligations and responsibilities of the parties. It is important to ensure that the management company has the required authority to sign for and bind the celebrity.

Definitions and interpretation - The agreement should clearly set out a list of definitions to establish or clarify the meaning of important terms in the contract. As these defined terms appear throughout the agreement, they are usually capitalised. It is advisable to cross-check the meaning of the word in the definitions section each time it is used in the agreement as its entire meaning, inclusive of limitations and exceptions, is imported into the provision in which it is used.

Term - This provision will describe the duration of the agreement, i.e., the length of time that the parties agree to be legally bound. The term is usually a specified number of months or years. It should be noted that while the endorsement agreement expires at the end of the Term, there are usually a number of provisions, such as confidentiality, cooling-off periods, etc that will survive the termination or expiry of the agreement. It is possible that there could be an initial term, which could be renewed through one or more mechanisms, including the notification of one of the parties, the mutual agreement of the parties and so forth. In the case of an extension, the extended term is considered the term of the agreement. It is also advisable to include possible extensions to provide for completion of marketing activities, such as the right to air TV commercials beyond the Term.

Early Exit Option - Many celebrity endorsement agreements operate for an initial term of one year, followed by successive options for a number of additional years, exercised at the discretion of the endorsee company. The rationale is to limit the company’s financial risk. Recent years, however, have witnessed a substantial increase in multi-year initial terms. While such arrangements can lower annual costs and help in creating a deeper association, companies face the risk of associating with a celebrity for a substantial period of time, during which risks associated with the celebrity’s behavior must be carefully considered. One possible remedy is an early exit option which may be exercised by the company upon payment of a “break fee”.

Territory - This provision will describe the geographic area within which the agreement is relevant and within which the parties perform their obligations as well as enjoy their rights under the agreement. This can be a particular city, state, country, region or even the entire world. Along with the provision on term, the provision on territory places explicit limitations on the tenure, extent and scope of the rights and obligations created under the agreement.

Consideration - The section on consideration must clearly indicate the nature, quantum, method and schedule of payments (i.e., endorsement / licensing fees / royalties / profits, cash or value-in- kind, a lump-sum payment, up-front payment or installment payments, whether there will be a minimum guarantee, etc.). The triggers and the quantum of payment associated with such trigger need be to mutually determined. It should also clearly indicate what interest rate will be applicable in the event of late payment.

Often, especially in the case of athletes, performance based incentives are negotiated and arrived at. Serena Williams’ endorsement consideration for Nike is linked to her ranking and performance at grand slams, in addition to a flat endorsement fee. Conversely, companies often negotiate for a reduction in payment if the celebrity fails to perform at a certain level or fails to generate positive publicity. For instance, marketing agreements for young cricketers often include clauses which state that the consideration payable will be reduced if the player fails to make a certain number of appearances for the national team during the term.

In the event that the compensation depends on sales generated, the company will look to make payments only after deducting taxes, transaction costs, bad debts, returns (actual and projected). If the endorsement agreement relates to an apparel or equipment manufacturer, the celebrity is usually entitled to receive pre-determined value-in-kind or merchandise at a discounted rate.

Product/Service Category - This provision describes the company’s product or service categories that will be endorsed or may be associated by virtue of the endorsement agreement. The proper definition of this category also has an impact on the scope of the company’s exclusivity, which is often a common demand. It is important to accurately define the category as, potentially, there may be myriad sub-categories within a general category, each capable of exclusivity. At the same time, companies need to be aware of the pitfalls of celebrity endorsements, especially if it is revealed that the celebrities do not use the products or services that they endorse.

In the US, a lawsuit filed by a consumer group forced sports giant Nike to admit Tiger Woods does not use the Nike Tour Accuracy golf balls he endorsed and that Nike was misleading golfers into thinking they were playing with the same ball as Woods.

Exclusivity - It is usually of fundamental importance to the company that the endorsement agreement contains an exclusivity clause, restricting the celebrity from offering similar services to a competitor. Such restrictions often go further, and prevent the celebrity from directly or indirectly doing anything which may cause the public to believe that he is associated with a competitor.

The agreement may also prevent the celebrity from endorsing competing products for a specified period after the product endorsement agreement has expired, since the public could continue to associate the celebrity with the company’s brand.

Defining exclusivity in an endorsement contract should thoroughly be considered in negotiations. A company must also think about specific companies with which the company does not want the celebrity associated. Moreover, if the company does not want a celebrity to do certain things in public, e.g., wear a competitor’s product etc., such restrictions needs to be covered in the exclusivity clause and specifically mentioned.

In November 2008, actor Charlize Theron reportedly settled a $20 million lawsuit brought by watchmaker Raymond Weil, alleging she breached her endorsement contract by appearing in advertisements for Montblanc watches and making a public appearance wearing a Christine Dior watch at a press event.

Services Required - Depending upon the nature of the product or services as well as marketing objectives, the list of services is unique to each endorsement agreement. It is extremely important that the company considers in detail the benefits it wishes to receive and the celebrity understands what it is granting, and that these are specifically documented with as much detail as is possible.

The scope of endorsement services to be provided by a celebrity can be broadly categorised into the nature of services and the media in which those services may be broadcast or published. The kind of services generally fall within predictable categories in which the performance of the celebrity is required—video (including commercials, infomercials and point of sale video), radio commercials, print photography, and personal appearances. In relation to personal appearances, it is important to specify the company’s expectations from personal appearances.

The most valuable asset in any celebrity endorsement agreement is the number of personal appearances that the celebrity can make. Depending upon, among other things, the negotiating strength of the celebrity and incentives involved, the number and length of personal appearances to be made by the celebrity during each year of the term should be agreed in advance. Such appearances can be utilised for photo and ad-shoots or ‘meet and greet’ sessions, as agreed between the parties. The industry standard for each personal is taken to be one day of eight hours for each personal appearance, excluding travel time. The company might retain the option of utilising the personal appearances in single days or as half days of four hours each. Further, the company also needs to retain the right to use all personal appearances in any given year of the term at a stretch, subject to the celebrity’s availability.

In view of the celebrity’s status and existing endorsement obligations, details relating to standards of travel (business class), commute (make of luxury cars) and accommodation (5-star) are often detailed in the contract. Usually, such costs are borne entirely by the company.

A potential stumbling block in any celebrity endorsement agreement is of scheduling the celebrity’s appearances. Celebrity endorsements are almost always subject to the celebrity’s commitments in their primary field of engagement. On the other hand, production costs and logistics of planning often tend to be very time sensitive and expensive.

The key to negotiations in this respect is to identify critical dates for appearances in advance and capture them as firm commitments in the contract. A procedure for notification often proves helpful in confirming schedules. Once the agreement is executed, it is critical to appoint a representative to liaison with the celebrity’s agent. In the event of cancellation of pre-agreed dates, the celebrity’s agent should then provide the company with alternative dates, failing which, the company can retain part of the consideration.

In 2008, Indian captain MS Dhoni was in the eye of a legal storm when Karnataka Soaps and Detergents Ltd cancelled their endorsement agreement with Dhoni and slapped a legal notice on Dhoni for breach. Dhoni had promised KSDL a total of ten personal appearances over two years and was able to provide only three days, without committing dates for the remaining personal appearances.

Retirement, Injury, Death - A celebrity endorsement agreement should take into account every foreseeable circumstance which may affect the celebrity, including death, injury and retirement. For instance, the agreement may provide that if the celebrity passes away or is permanently injured during the term of the agreement, then the company may continue to use creatives and marketing material until the time when the agreement would have naturally terminated.

Further, if the agreement provides for full ownership by the company of any materials produced as a result of the services rendered by the celebrity, then the celebrity’s death may have little or no impact on the agreement if all the services have already been performed, unless the circumstances of the death may negatively impact upon the brand. The agreement could contain provisions such that in the event of retirement of the celebrity during the term of the agreement, the celebrity provides an increased number of personal appearances at no additional remuneration.

Insurance - If the celebrity’s death or permanent injury would significantly impair the company’s marketing program, consider obtaining a suitable ‘key person’ life insurance policy that would cover this risk, with the celebrity’s consent. Similarly, the US and UK have witnessed an increase in the number of corporations/companies seeking to protect their investments, their brands and even their sales when their celebrity endorsers suffer public embarrassment, as in the case of Tiger Woods and Wayne Rooney. Such insurance policies can cover money paid to celebrities as well as the cost of producing and booking television commercials, print advertisements and other promotions. Some insurers also cover the costs of new commercials with replacement celebrities.

Right of First Offer, Right of First Refusal and the Right to Match: These are a variety of provisions that encourage the parties to continue their relationship beyond the original scope, term or territory. By virtue of Indian legal precedent, the rights of the company to make a first offer (before any third party does), to have the right to match a third party’s offer or any other similar right must be enjoyed during the term of the agreement and not post termination of expiry thereof. While biasing the parties to continue their relationship, provisions of this nature allow the celebrity and the company to go to the market for an independent financial valuation. These are often hotly-contested provisions in an endorsement agreement as they curtail the commercial freedom of the celebrity in the future. At the same time, they can be valuable to companies and celebrities that would like to establish longer term relationships bringing a degree of long term certainty to both.

Intellectual Property - This provision generally grants the company a limited right and license to the celebrity’s intellectual property (name, image, likeness, signature, attributes, etc.) and also sets out the fact that each party will respect the other party’s intellectual property and proprietary interests. It is a standard provision in all endorsement agreements and must be carefully drafted to avoid any confusion on its scope. There must also be clarity on the ownership of the intellectual property that is created during the tenure of the relationship, whether individually by either party or jointly by the parties. The celebrity should also retain the right to approve in advance any promotional material and advertisements that bear the celebrity’s name or other identification.

Undertakings/Restrictions - This section is important as it often details what the contracting parties agree to do to honour the agreement between or among them. Factors such as the Term, the scope of the services to be provided, and the consideration usually determine the level of restrictions imposed on the activities of the celebrity. For instance, the agreement may require the celebrity to refrain from especially taking part in high risk activities. The agreement may even go as far as requiring that the celebrity warrant that he is in good health, and that he will take all necessary steps to ensure that he remains in good health.

Most companies specify a list of their competitors or competitive product categories at the time of negotiating the agreement. As such, this section of the contract will typically constrain the celebrity from endorsing, directly or indirectly, the products of a competitor (or its subsidiaries). It is also in the celebrity’s interest to ensure that the company honours certain obligations under the contract.

Usually these will include terms such as not publishing any content, photos or advertising materials featuring the celebrity without prior consent, not publicly comment on the relationship without the other party’s consent, not using the other party’s intellectual property beyond the scope of licenses granted and other terms that help the parties maintain mutual respect and properly bind the scope of their relationship.

These kinds of restrictions must then be coupled with a clear provision on the consequences of breach, and what damages can be recovered by the company.

Morals Clause – To guard against the risk that a celebrity's commercial value might be damaged by misconduct, endorsement contracts commonly include morality or morals clauses. These clauses permit the company to end the endorsement agreement if the celebrity tarnishes his or her image, or the image of the company or its products and services. This could cover situations such as convictions for any offence involving dishonesty, violence or illegal narcotics, or the use of lyrics, performances or public utterances to incite violence, demean or discriminate against any person or group of persons.

Prominent examples include Kellogg’s decision to opt out of a contract extension with Michael Phelps after pictures emerged of Phelps with a bong, on the basis that such behaviour was inconsistent with the company’s brand image. Similarly, Nutella and McDonald’s decided against continuing their association with basketball superstar Kobe Bryant after he faced allegations of sexual assault.

One brand however that stands out for its treatment of athletes in breach of the morals clause is Nike. In July 2011, the company officially re-signed American football quarterback Michael Vick after he served time in prison for his involvement in an illegal dog fighting ring. This is especially notable considering this is the first time a sponsor has ever brought back an athlete after dropping the athlete from previous marketing campaigns.

Conversely, reverse moral clauses allow the celebrity to terminate the endorsement agreement if the company commits some sort of corporate violation, as detailed in the contract. In the modern context, this clause has its origins in the spectacular collapse of Enron. The Houston Astros had to pay $2.1 million to erase Enron's name from their ballpark after the energy broker collapsed in scandal. More recently, Dash Dolls LLC, terminated the agreement for the co-branded ‘Kardashian Kard’ after the Connecticut Attorney General launched investigations into the card for high and hidden fees and targeting young adults.

Representations, Warranties - This section of the agreement will typically be generic, with the possibility of a few additions depending on the context. It will generally act as an assurance that both parties are acting within their legal capacity to enter into contract, that they indeed possess the rights and ability to grant the rights being granted and perform the obligations being committed to and that they have no conflicting contractual or legal obligations (and will not enter into such contracts or obligations) that could jeopardise the nature and scope of the agreement being entered into.

A representation is defined as an account or statement of facts, allegations, or arguments. Representations present everything from its past to its current status. A warranty generally moves from the present to the future. The warranty obligates both parties to the terms of the contract. Usually, both parties warrant not to enter into any such agreement in the future that would hamper their ability to perform their obligations under the sponsorship agreement. When a contract uses the terms "representations" and "warranties" together, they blend the past, present, and future together within terms of the contract. The scope of the representations and warranties can also have an impact on the indemnification rights of the parties.

A representation is defined as an account or statement of facts, allegations, or arguments. Representations present everything from its past to its current status. A warranty generally moves from the present to the future. The warranty obligates both parties to the terms of the contract. Usually, both parties warrant not to enter into any such agreement in the future that would hamper their ability to perform their obligations under the sponsorship agreement. When a contract uses the terms "representations" and "warranties" together, they blend the past, present, and future together within terms of the contract. The scope of the representations and warranties can also have an impact on the indemnification rights of the parties.

Impairment - It is often understood by the parties that endorsement are dynamic in nature and that circumstances can change making delivery of all the committed rights and entitlements (including the committed number of celebrity appearances) impossible or unfeasible. To this extent, it is prudent to include provisions with respect to impairment of rights that would provide basis for termination of the contract. These provisions often provide the opportunity for renegotiation of benefits/fees and/ or the substitution or equivalent benefits for those not delivered or incapable of being delivered. Often, a third party agency or an industry expert may be relied upon for valuing the relative delivered and undelivered benefits and the value of substitute benefits. The breakdown of this process and/or the inability or unwillingness of the parties to mutually agree on impairment remedies may ultimately be a basis for termination of the agreement.

Termination and its consequences - Every contract will usually set out the circumstances under which it can be terminated prior to the expiry of the term. That is, a contract will generally come to an end when it is considered to be fully performed, or when it has come to the end of its Term. However, usually if there is a material breach of the endorsement agreement, the party which breaches the agreement may be considered to have defaulted on its promise. Accordingly, the other party may terminate the contract at will. This may arise if the company does not make timely payment, or if the celebrity does not properly deliver the services to the company. Sometimes, a company may opt for endorsement agreements, the term of which is directly linked to the period that the celebrity remains
prominent and favourable in the public eye.

It is important to lay down the consequences of termination. Often, the consequences include proportionate payment or refund of the endorsement fee. Depending on the materiality and circumstances of the breach, the parties may even agree on a full refund. With respect to failure to pay endorsement fees or royalties, a money suit is often the only available remedy after termination. In other case`s of substantive deliverables, specific performance may be an alternative to be explored prior to termination.

In essence, the consequences of termination could also serve as a deterrent to prevent either of the parties to the agreement from terminating the agreement for no good reason. It is also important to note that contract law does not favour ‘penalties’ for breach that are unconnected to the actual loss or damage suffered and therefore the nomination of liquidated penalty amounts, regardless of circumstance, is rarely recommended.

Miscellaneous provisions – The celebrity endorsement agreement will list a number of standard miscellaneous provisions that constitute an important part of any contract, including:

(a) Force Majeure: This provision will usually free both parties from obligations or liability when a superior external force affects the performance of the contract. Examples which are commonly listed in a contract include acts of God, war and riot, terrorist attacks, strikes, changes of law, etc. If a force majeure event continues for a certain extended period, the parties may have the right to terminate the agreement and not just suspend their relative affected obligations thereunder.

(b) Indemnification: The parties will generally agree to indemnify the other party for any loss that may occur due to their own negligence, due to inaccuracy of their representations and warranties, or due to their acts of omissions. Indemnification is a key contractual remedy and the scope and procedures for indemnification must be carefully set out. It is also common to limit indemnification for direct (rather than remote) losses and damages and/or to put a commercial cap (e.g., the total consideration payable) on the indemnification obligation of a party so as to limit its total potential liability under the contract.

(c) Dispute Resolution: This provision outlines the manner in which the parties will resolve any dispute that may arise out of the contract. Common dispute resolution clauses refer such matters to negotiation, conciliation, meditation, arbitration and litigation. It is common to specify the rules governing each of these and the seat of arbitration, if that is the chosen remedy.

(d) Governing Law and Jurisdiction: This provision will outline the set of laws the parties wish to be bound by. This is particularly important in the event of a dispute as the judge or arbitrator will consider the governing law when making a final and binding decision in terms of which party is liable for any wrongdoing. The jurisdiction provision will set out where the dispute should be heard. Law requires both the governing law and jurisdiction chosen to have a relevant nexus to the parties and/ or the transaction and to this extent the parties’ choice is bounded.

(e) Assignment and Change of Control: This section will generally state that the rights afforded under the endorsement agreement are personal and that they may not be assigned to a third party without the other party’s prior consent. Similar provisions relate to continuance of obligations when the other party undergoes a corporate change of control. This is to ensure that a party is not forced to interact with someone they had not originally agreed to work with. However, it is also common that companies retain the right to assign without consent in order to retain flexibility of their operations.

(f) Confidentiality: Confidentiality is a standard provision in endorsement agreements. Parties will agree to keep most finance-related and contractual dealings strictly confidential between them subject to a few standard exceptions. This is on the understanding that the parties will often be in a close relationship where lots of non-public information is shared between them in the course of their dealings.

HAPPY NEW YEAR 2009?

By M H Ahssan

From dreading the HR phone call on Friday mornings to checking the news for updates on any terror strike in your city before stepping out for shopping could continue to be the pattern in 2009. But there is hope. India’s economy would recover relatively faster than other nations. People will vote on manifestos, not election rhetoric. Easy money will lose its sheen. And such corrections spell hope, not doom.

In 2008, people had only a fistful of reasons to rejoice. Citizens of AP celebrated when Telugu got the classical language status. They revved up and down the Punjagutta flyover celebrating their much smoother Begumpet-Banjara Hills ride. But such moments of joy were few and far in between. It was largely a pot holed ride, worsened by the recession and the fear of terror strikes. Small wonder then that optimism eludes people when asked if the new year would give them any reason to smile. But the never-say-die spirit soon bounces back as they merge logic with hope and point out that 2009 could be not a bad year, after all.

With the recession’s ‘full’ impact still to be felt on the Indian economy and the fear of pink slips still looming large on various sectors, senior industry persons say that it would easily take another two quarters for the grim situation to show any signs of improvement. But there is a glimmer of an upside. “The year 2009 is going to be a test period. There will be some more downturn before there are better days since we haven’t seen the full impact of the US meltdown yet. But India being an emerging market would see a relatively faster, better recovery,’’ says K Harishchandra Prasad, senior vice-president, Federation of Andhra Pradesh Chamber of Commerce and Industry.

WE THE PEOPLE
What the year 2009 will bring about is a sea change in the way ‘people’ are perceived. On one hand, while employed professionals will be scanned routinely for their retention worthiness, on the other politicians will have to take the masses seriously. Harishchandra Prasad points out that if earlier the poor performers were laid off, now even a hardworker’s job is not guaranteed, particularly in the IT sector.

Helpless in the job front, but powerful otherwise. The same set of people would exercise tremendous power in the upcoming elections, says S A Shukoor, director, Centre for Educational Development of Minorities, who believes that Barack Obama’s victory was was a sign of things to come. “People have brought about this change (Obama’s victory). There would be a ripple effect across nations. People will think before they vote in the elections and more people will vote this time. Elections will be won on manifestos and not political drama,’’ Shukoor hopes.

But such hope is not sans logic. Shukoor points out that over the years the number of communal riots in the city has dipped. This, he says, is because sense has prevailed among people that its politicians and not them who gain from such acts of violence. “People will tire of political games,’’ he says.

In what appears like a reflection of Shukoor’s thought is the silent rumbling of creative activism in the city. Theatre personalities are working on scripts that leave a message for the masses. “We now plan to stage at least two shows every month and plays that leave a message,’’ says theatre personality Rashmi Seth, adding that several theatre groups in the city have woken up from their slumber. Several plays being scripted currently focus on the fight against terror and inspire people to raise their voice against poor governance and coax them to appreciate the traditional lifestyle of sensible spending. “Theatre is a hugely sensitive medium that reflects the turmoil as well as harmony in society,’’ Seth says, adding, “The year 2008 initiated a number of debates on governance and lifestyle patterns. Be it terrorism or the global financial crisis, such difficult times only leave people stronger and wiser.

HELPFUL CORRECTIONS
The meltdown’s impact in the last quarter of 2008 did make people go back to post offices and reschedule their purchases and there will be more such similar corrections in the year 2009. While employers cost cutting is an alarming sign of the firm’s financial health, it is also a much needed correction, say industry experts. Industry seniors rue how people particularly in the IT sector have been molly-coddled by their employers. “Six months ago, there would be one cab for one person now that one person is asked to wait until there are three more people to be dropped,’’ they say, illustrating how such pampering cannot last.

But what the industry is hoping for would change in the year 2009 is the perception of easy money. Simple graduates landing jobs easily would on the face of it paint a pleasant employment picture but academicians have expressed their discomfort at students cutting short their education for quick money.

Describing it as a case of “easy come, easy go’’ Harishchandra Prasad says that the downturn has made one thing clear: “If you have worked for something, it would stay with you for longer. If it comes easily, it goes easily,’’ he says, pointing out that young grads at 20 or 21 would be sitting on three offers and wouldn’t even know why. He notes how the present challenge the industry is faced with today is to place fresh graduates and now its not just their grade but their soft skills and general knowledge that are being put to test.

But a much-needed correction would be a hand-holding exercise that companies could undertake at the time of laying off their employees. The layoff season in India Inc. reeks of the US practice of showing the door to employees without as much as counselling them as to how best they could use their existing resources until they get their next job, notes a senior HR consultant.

One heartening correction, which is neither terror or meltdown related, has been in the drop in accident casualties in October-November, 2008. “The total number of deaths dropped by 31 as against 2007 for the same period,’’ says N V Surendra Babu, additional commissioner of police (traffic). This could well be the result of strict policing on roads and sensible driving, but Surendra Babu says that it is too early to take credit for the dip until a pattern is established. A correction subtly unfolding is that of good scripts doing better in Tollywood with formula films crashing at the box office this year.

HOPEFULLY, SPEAKING
Not all industry sectors are hit by the meltdown. Healthcare is one of them. In fact, India’s medical tourism dream could take off with people from across the world realising the quality affordable healthcare they can receive in India. “A challenge we are all geared for is to introduce new technology in medicine so that India’s healthcare industry becomes world class attracting international patients,’’ says Dr K Hari Prasad, CEO, Apollo Hospitals. He also hopes that the Rajiv Arogyasree programme, a major development in the year 2008, is fine-tuned in 2009.

Another important sector, sports, may not be as insulated from the recession as the healthcare industry. “The year 2008 was good for the sports fraternity with Saina Nehwal making it big internationally and state players entering Olympic teams from India,’’ says Vikas Raj, managing director, Sports Authority of Andhra Pradesh, citing even shooter Gagan Narang’s perfect scores in the last few events.

CHEER IN GOVT SECTOR TO CONTINUE
The sixth pay commission’s implementation could not have been timelier. When the world is reeling under the recession, government officers are insulated from the meltdown blues as they are now not only getting their revised salaries but they even received the first instalment of arrears (calculated from the year 2006) during Diwali.

Government organisation employees got 40 per cent of the arrears due to them in October and the second instalment of 60 per cent of the payout is due in the next financial year. The first payout amount ranged from Rs 20,000 to Rs 3 lakh depending on the seniority of the official. In addition, the employees were given a bonus.

The city has several central government establishments such as the railways, telecom, air force, army, CPWD, CRPF, DRDO, CISF, Income Tax, Survey of India and customs and excise among others.

But the icing on the cake perhaps is the revised salaries that government employees say have brought them almost on par with the private sector employees, who so far flaunted their fat pay cheques.

Small wonder then that builders and car dealers are queuing up at government offices hard selling property and latest car models as they are the only cash-rich party available in these recessionary times. In fact, car dealers have come up with lucrative deals offering special discounts and deals of easy payment options to net the government employee.

And government employees are spending and even loving it. While some are investing in gold (the fluctuating gold prices not withstanding), others are buying themselves cars using the arrears to make down payments that would make their EMIs smaller, affordable. Others are using this chunk of money to repay mortgage bank loans. But most people are investing in fixed deposits with some nationalised banks offering a good rate of interest.

Angered cricket fans add poll twist

By Raja Murthy

Elections in the world's largest democracy and "television's ultimate reality show" have collided in a clash of big stakes and high drama peculiar to the sub-continent. India's US$1.75 billion Indian Premier League (IPL) Twenty20 has suddenly been shifted to take place in South Africa, over security concerns about overlapping schedules of next month's polls and the cricket league.

Hurried efforts at rescheduling the IPL tournament to be played on alternative dates in India failed, as Delhi considered the general elections, from April 16 to May 13, and the IPL, from April 10 to May 24, as too big a double task for the security forces to handle. The government already has had to commit forces to protect 800,000 polling booths across India. South Africa, incidentally, is heading for general elections during the IPL tournament.

Security has become a major issue following the terror attacks in Mumbai last November, in which nearly 200 people were killed, and the attack on the Sri Lankan cricket team in the Pakistani city of Lahore this month. None of the players were killed in this incident, although several were injured.

The second round of the one-year-old IPL, Asia's richest and the world's fastest-growing city franchisee-owned sports league, is now being outsourced from the country that put outsourcing on the map.

The IPL embraces a shortened version of cricket. The traditional version is the Test, which is played over five days and during which each team can bowl as many overs of six balls each to the opposition team. In another version, played over one day, each team bowls 50 overs. In IPL, the teams bowl only 20 overs each, making for a fast and furious spectacle that lasts only a few hours and which has captured the imagination of fans around the would, although purists still have their doubts.

The inaugural 2008 IPL tournament started on April 18, 2008 and lasted for 44 days, with 56 matches played by eight teams which were created by franchises being auctioned. A novel feature of the teams was that Indian players and others from around the world were bid for - the best being secured for millions of dollars for the duration of the "season".

The second season of the tournament is now expected to start on April 18, with the venues in South Africa still to be announced. England was also considered as an alternative venue, but was apparently ruled out because of its inclement spring weather.

"I apologize to the people of India. But we're going ahead so they can at least watch the event on TV," said Sashank Manohar, the president of the Board of Control for Cricket in India (BCCI).

The switch is a massive bonus for South Africa, which will also host the 2010 World Cup soccer tournament and which is also due in September to stage the Champions Trophy, that had been scheduled for Sri Lanka. Pakistan was originally due to host the one-day cricket international competition last year, but it was postponed over security concerns. It was then rescheduled for Sri Lanka, but moved again over wet weather concerns.

Much as Indians will be dismayed at losing the IPL, which had instantly become a hit tournament, South Africa has an estimated 1.2 million Asians - about 2% of the total population - as well as long-standing cultural ties with India. Mahatma Gandhi, the "Father" of modern India, for instance spent 21 years in South Africa, from where his life changed from being a lawyer to that of a national leader.

Lalit Modi, the IPL commissioner, is reported as saying that the South African economy will benefit enormously from staging the tournament. Speaking at a press conference in Johannesburg, Modi said the influx of players, coaches, support staff, media and spectators would inject many millions of dollars into the country's economy over the five weeks of the league.

"At any given point of time, we have 10,000 people working on this tournament. South Africa will benefit a lot. We will be using 30,000 rooms in hotels and 10,000 airline tickets will be needed for the purpose of this tournament," Modi said.

Possible South African cities being the unexpected hosts to matches between IPL teams such as the Mumbai Indians, Chennai Super Kings, Delhi Daredevils and Kolkata Knight Riders could be Durban, which has the country's biggest ethnic Indian population, Pretoria, Johannesburg, Benoni, Cape Town, Port Elizabeth, Bloemfontein and Potchesfstroom.

While Cape Town, host to the IPL's opening ceremony, could be resounding to vuvuzele, a one-tone musical horn, and a colorful sea of makarapas, construction safety helmets turned into tribal party hats, the Congress, the lead party in India's ruling coalition, is starting to pay politically for the loss of the tournament. Media surveys showed 40% to 70% of respondents blamed the government for the IPL leaving.

The government is now in damage-control mode right in the middle of the general election campaign and opposition political parties, smelling blood as election salvos heat up the Indian summer, have called the development a "national shame".

A defensive Home Minister Palaniappan Chidambaram called the decision "hasty" and claimed the BCCI made the move without consulting the government.

"It will be difficult to provide adequate paramilitary forces for election purposes and for the IPL," said Chidambaram, a Harvard-educated lawyer and former finance minister who took over the Home Ministry after the November 26 terrorist attacks in Mumbai.

The Bharatiya Janata Party (BJP) promptly blasted the government for "surrendering to terrorists". The BJP, the main opposition party, is under siege after one of its young leaders, Varun Gandhi, grandson of former prime minister Indira Gandhi and nephew of Congress president Sonia Gandhi, was censured by the Election Commission for making a crude hate speech against Muslims. This took place in an election rally in his constituency Pilibhit in Uttar Pradesh, a key electoral state.

The IPL controversy has given the BJP, which is trailing in opinion polls, some timely ammunition to gain ground. "It has sent a message that India is not a safe country," said Arun Jaitley, BJP general secretary and president of the Delhi Cricket Association. He has called the IPL relocation a "governmental failure to provide security".

The political explosion has left the Congress, which heads the ruling United Progressive Alliance coalition, as the worst-affected. It was in a no-win situation: now it is blamed for the hugely popular IPL leaving India, but it would have been equally ripped apart if any violent incident had happened during the tournament.

The IPL has become India's most popular international brand in just a year. "TV's ultimate reality show," is how Sneha Rajani, executive vice president of TV rights holders SET Max, described the tournament.

The IPL will be beamed out of South Africa at 4.00 pm and 8.00 pm Indian standard time. Just under 100 million people out of India's total trackable 131 million TV audience saw the inaugural IPL edition last April, according to an estimate in a leading news weekly India Today, including a record audience among women and children.

Besides TV audiences in the Asia-Pacific, North America and Europe, such was the pan-global popularity of the IPL in its first edition that Arab Digital Distribution, a Middle Eastern pay-TV management company, has bought the 10-year TV rights for Middle East and African countries. This included the United Arab Emirates, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Palestine, Saudi Arabia, Syria, Turkey, Algeria, Morocco, Egypt and Sudan. It was unthinkable two years ago that an Indian cricket tournament would have a following in Libya.

"The IPL is unquestionably the world's richest cricket league, and unquestionably the biggest sports concept launched anywhere in the world in recent years," Modi told Asia Times Online last year - three months before it started. "We expect IPL to have a greater following outside Asia than any other sports league that takes place in the continent."

Modi and his close associate Inderjit Singh Bindra, an IPL council member and the principal advisor to the Dubai-based International Cricket Council, the game's governing body, were accurate in their gung-ho optimism. In April 2005, Bindra told Asia Times Online that the BCCI would be worth $2 billion in four years ( See Cricket's home moves closer to the money Asia Times Online, April 23, 2005.) Both Modi and Bindra have their chance now to further expand the IPL's popularity outside Asia.

Besides the IPL TV audience of nearly 100 million, hundreds of thousands of fans ecstatically packed stadiums in 2008.

This correspondent experienced the IPL wonder in Mumbai's Wankhede stadium, for three matches, as house-full crowds were treated to high-quality cricket, rousing music, drum-beating bands in traditional costumes, ushers showing fans to seats, imported cheerleading teams and fireworks lighting up the night sky - all in an enthralling three-hour package involving top international stars playing together as team mates for the first time.

"IPL breaks heart of fans across the country," mourned the headline in the Times of India, the largest-circulated English daily in the sub-continent. The shift out of India was the front-page lead story in dailies and dominated TV news channels, in the middle of the general election campaign.

The move to South Africa leaves millions of disappointed Indian fans - translate them now as voters - and nervous franchisee team owners trying to recover multi-million dollar investments.

The eight IPL teams each cost between the $65 million that Emerging Media - a consortium that includes media baron Rupert Murdoch's son Lachlan and Hollywood star Russell Crowe - paid for the Rajasthan Royals team, to $111.9 million that billionaire industrialist Mukesh Ambani paid for the Mumbai Indians as the most expensive IPL team.

Other IPL team owners are a mix of top industrialists and India's leading movie stars, such as Shahrukh Khan and Juhi Chawla who co-own the Kolkata Night Riders, and Preity Zinta, co-owner of the Kings XI Punjab team.

But such was the astounding success of the first IPL edition that the Rajasthan Royals, winner of the inaugural tournament, had its valuation more than double in a year to $140 million in 2009.

"The IPL is recession-free," the private-jet owning Modi said in February, after the second edition of player auctions saw two England players - Andrew Flintoff and South African-born Kevin Pietersen - earn contracts worth $1.6 million and $1.2 million respectively for a possible six weeks of work and play.

While the IPL move could be a blessing in disguise to boost its global growth, the ruling Congress party-led coalition could pay dearly at the polls for this perceived "national shame" and its "surrender to terrorists".

FireChat: The Revolutionary Messaging App Doesn’t Need The Internet And Work With Normal Phone Configurations

With awareness of and desire for technology growing faster than technology itself, and internet connectivity emerging as a necessity for survival, we have gravitated towards a heavy dependence on telecommunication networks to keep us connected. Raging debates on net-neutrality have sparked a need for an alternative. 

When cyclone Hudhud wreaked havoc in Andhra Pradesh last year, it destroyed 70% of the state’s communication infrastructure, making it difficult for volunteers to coordinate rescue efforts. For quite some time now, we have begun to see the gaps in communication that need to be filled. 

Bollywood Bellies Shakes Telly Ad World

Bollywood’s leading ladies have pipped their male counterparts on the visibility score on the telly as more brands lapped them up for advertising campaigns in 2012. Female actors saw their presence increase from 40% to 46% in the overall celebrity endorsement market on TV even as male actors stagnated over the last two years with a 38% share, reveals latest data collated by TAM, a television audience measurement agency, and exclusively shared with INN. 
    
Not surprisingly, sports celebrities saw their visibility decline by 8% from 2011, largely due to the lacklustre performance of the Indian cricket team. Cricketers form the biggest chunk of sports endorsements in India. Among companies, FMCG biggies Hindustan Unilever (HUL) and Procter & Gamble (P&G) emerged as the two biggest advertisers using celebrities followed by Brooke Bond Lipton and L’Oreal India. Notably, top ten advertisers using celebrities comprised only FMCG brands. 
    
TAM AdEx takes into account advertising volumes for its analysis and tracks the visibility of the celebrities on television. The data is not representative of ad spends or how much the celebrities earn per endorsement. 
    
Shahrukh Khan remained the most visible face on television with an 8% share followed by Kareena Kapoor. Other women actors among top 10 celebrities according to ad volumes were Katrina Kaif, Priyanka Chopra, Kajol and Anushka Sharma. 
    
“FMCG brands have to differentiate themselves in highly penetrated categories like soaps and shampoos. The more undifferentiated your product is, marketers need to bring in a clutter breaking tool and celebrities are a big part of the plan in that case,” said Basabdutta Chowdhury, CEO of Platinum Media, a division of media buying group Madison that buys media for FMCG majors like P&G, Marico and Godrej. FMCG brands contribute almost 55% to the overall advertising spends in the country. 
    
Celebrity management firms said with a new brigade of female actors in the endorsement market, more brands are willing to get on board these young faces to tap into the youth factor. Neeraj Garg, VP, juice business, Coca-Cola India, said after signing on Parineeti Chopra for Maaza, “She is a young achiever who epitomizes the young India as someone who is go-getter, energetic, wanting to make a difference and sure of themselves.” 
    
Others like Deepika Padukone, Anushka Sharma and Nargis Fakhri have also made an impact on the endorsement scene, mostly in the consumer goods space.

'Cricket' Behind Sunanda Pushkar’s 'Suicidal Murder'?

The revelations of Delhi Police that Sunanda Pushkar, wife of former Union Minister Shashi Tharoor, was murdered, not died of any illness, have opened a can of worms.

Can cricket kill? A few weeks ago we all wrote about death on cricket fields when the Australian Phil Hughes was felled by a Sean Abbott bouncer at Sydney.

It was sad. But can cricket be a breeding ground for murky killings by some unknown faces? The revelations of Delhi Police that Sunanda Pushkar, wife of former Union Minister Shashi Tharoor, was murdered, not died of any illness, have opened a can of worms.

Why Indian Tennis Is Seeing A Player Revolt?

Indian sport simply does not believe in player associations. Cricket doesn’t have one, Wrestling doesn’t, and neither do shooting or athletics or any other sport in India. Part of the reason for the lack of player associations is that the associations have never believed in empowering the players to do anything more than bow to the officials in power. So precarious is it, that anything more and the associations might have a revolt on their hands.

In tennis, perhaps, they already do.

And it makes sense to avoid a revolt because that’s when the skeletons come rolling out of the closet. So the associations did the best thing possible – it got the big players over to their corners – gave them the money, the power and the facilities even as the struggling players, the ones who need the associations to back them up the most, languished largely forgotten.

So when 11 of India’s top tennis players excluding Leander Paes decided against playing in the Davis Cup, the All India Tennis Association was still not worried. It didn’t quite imagine that the players would ever manage to stay together long enough to become a threat to their monopoly.

But with the formation of the Indian Tennis Players’ Association (ITPA), the players have shown the determination to become part of the decision making process.

“See, Tennis does not need AITA,” said Manisha Malhotra, one of the founding members of ITPA. “In most other sports, the associations are responsible for sending the list of the participating athletes for tournaments. But in tennis, the players don’t need the association except for the Davis Cup, the Olympics, the Fed Cup and the like. They can send applications on their own. And any which way, most of the players in India have come up on their own or via the US College system.”

“We don’t want to fight the AITA, we are not rebels but we do feel that we can point them in the right direction in many cases. In a certain sense, we believe that as tennis players we have to strive to make the system better.”

And what does better mean? Does it mean more tournaments in India? Does it mean more funding for players? Does it mean the chance of a wild card in major tournaments?

“For example, in March, we will have a US $25,000 Challenger event at Bangalore. Now, it sounds very good to have that sort of event but does it help India’s players in anyway? A $25,000 attracts higher-ranked players and it greatly reduces the chances of our players making an impact – most of them crash out in the first round itself.”

The Challenger event at Bangalore in 2012 was won by Donna Vekic, who is now ranked 92 in the world. India’s best players, however, are nowhere close to even 300. Sania Mirza, who hardly plays singles anymore, is ranked 380. Kyra Shroff comes in at 475, Rishika Sunkara is 545, Rutuja Bhosale 601 and Prerna Bhambri 639. They simply don’t have a chance.

“So instead of having a $25,000 event, it would make so much more sense to have them play in $10,000-dollar events. They really need a chance to play and a chance to build up their confidence too. It’s as simple as that but does the AITA understand that?,” wonders Malhotra.

In the United States, for example, the players association plays a vital role in the development of players – it advises the United States Tennis Association on young players who need funding, who should get a wild card, the schedule and the kind of tournaments it needs to have. This is the role that ITPA wants to play as well.

At the end of the day, if Indian tennis really wants its players to achieve something it needs to be inclusive, not exclusive.

“It might be easy to say that ITPA is just about the tennis players. But we hope we can show the path to others sports as well. Players need to have a stake in the running of their sport as well. Sometimes, they are the ones who know best and sometimes, the association should recognise the fact as well.”

The Playing Fields Of Hyderabad

The undisputed fact of life is the unique character building trait that collective sport inculcates in youngsters enabling them to pool resources and excel as a group especially in circumstances where an individual can be easily overwhelmed by insurmountable odds. 
    
This fact was put to the severest of tests at Hyderabad during one of the bleakest periods of the city’s history in the later half of the past century. The outcome thankfully, was a remarkable validation of the superior character building abilities of group sports. The playing fields, which at Hyderabad are commonly referred to as ‘grounds’, provided a beleaguered generation with the opportunity to overcome all hardships through lessons learnt in simulated combat at physically exerting games. The industrious youth of the city capitalised on the opportunity provided and excelled on probably the only level playing fields in a society otherwise fraught with oppression and bias. 
    
It is said that the military campaign against the erstwhile Nizam’s Dominions during ‘Police Action’ was code named ‘Operation Polo’ due to an abundance of Polo grounds at Hyderabad. Subsequent to the merger of the state, a majority of these play grounds of the elite which had mostly been in the possession of the largely ceremonial state army went into the control of the Indian armed forces. 
    
What few remained in the public domain became an exclusive domain of the horde which descended upon the city to take over its administration. The changes brought about by the end of monarchy resulted in pecuniary disaster for the erstwhile nobility for whom sports and leisure were no longer affordable luxuries. In a cascading effect of this abrupt downtrend in fortunes, a multitude of retainers and dependents lost their livelihoods and were rendered destitute. The change in administration also led to massive dismissals of the city’s middle class from government service by the new czars of Hyderabad who were determined to ‘set the balance right’. 

The harsh times brought upon by this unmitigated suppression of the original inhabitants of the city led to their complete and mass demoralisation. Sustained over an unjustifiably extended period, it soon began to adversely impact the lives of the first post-independence generation of Hyderabad. It is to the credit of some farsighted individuals, a few of whom had fortunately survived the purges in administration, that all was not lost to the vagaries of misplaced nationalism. Quite a few of these men of integrity refused to give in to unjustified demands of the new order by declining to harass and censure their fellow citizens. Understandably, this extraordinary band of messiahs themselves suffered immensely at the hands of the bigoted but despite all coercion stood their ground and bore the resulting hardships. S N Reddy, the first commissioner of police to assume charge after the Police Action, spared no effort in boosting the morale of the officers and men under his command while at the same time ensuring that fabricated cases and trumped up charges against citizens were minimised. 

Providing further testimony of his integrity and character, Reddy unhesitatingly obeyed the command of his erstwhile monarch by serving the Nizam, who had by then become the Rajparmukh, as chief of security. For this commendable act of responding to the orders of his now ‘out of power’ master, the S N Reddy was hauled to court by a raving fanatic who accused him of being part of ‘an illegal organisation which is the nucleus of a fifth columnist armed force’. However, the petition was summarily thrown out when the judge realised that the dreaded ‘fifth column’ was nothing more than the Nizam’s palace guard. 
    
Another city luminary, the late Rai Janki Pershad, who at the time of integration was serving as director of information, refused to dress in any other manner than the official court attire of old Hyderabad. Despite having to face discrimination at the hands of minions in the new regime, the veritable gentleman refused to buckle and is said to have reiterated that he was dressed as a Hyderabadi should and that he was proud to be one. Encouraged by such exemplary shows of strength Hyderabadis tightened their belts and are taking the future in their own hands.

Spotlight: Super-Luxury Cars Vroom Emerging India Cities

 Cash-rich customers increasingly lapping up the Rs one crore-plus high-end offerings from global giants.

Move over Mumbai and Delhi, new Indian markets in smaller cities have now caught super-luxury car makers by surprise. Cash-rich customers from cities such as Ahmedabad, Bhubaneshwar, Pune, Kochi, Coimbatore, Chandigarh and Ludhiana are no longer ogling at Lamborghini, Jaguar-Land Rover, Mercedez and Audi. They are increasingly lapping up the Rs one crore-plus offerings from these global giants.

From Underdogs To Football National Heroes

The game of football gained popularity at Hyderabad in the early 1920’s and the city had its own association by 1939. In the succeeding years, the techniques and style of the players from the city, earned it national recognition with the ‘black and yellow shirted’ Hyderabad city police team becoming a force to reckon with. The team took the country by storm in 1950 when they beat favorites Mohan Bagan at the first Durand Cup to be held after Independence. 

That match also marked the coming of age for S A Rahim, the redoubtable footballer who went on to serve the national team as coach and manager from 1950 until his death in 1963. It was under Rahim that India won at two Asian Games apart from reaching the semi-finals at the Melbourne Olympics of 1956 where a record 9 players from Hyderabad found a place in the squad. The stellar performance by the national team at Melbourne “is still considered India’s greatest ever achievement in football”. 
    
It was this euphoria created by Rahim and his band of indomitable footballers of the Hyderabad city police that was primarily responsible for the football mania that gripped the city. Bolstered by the support of masses at practice and meets, the football cult in the city bloomed. Enthusiasts chipped in wherever they could and provided much needed encouragement. Amongst them the services of a few stand out. 
    
Qadar Pasha Chishti, an alumnus of the famed City College who had gained fame as the most renowned Jarrah (0rthopedic physician in the Unani system of medicine) of the city, took it upon himself to provide physiotherapy support to budding footballers apart from directing their training regimen. The one asset that had remained with the underprivileged masses of Hyderabad in those trying times was access to the numerous grounds in the city. Among the most famous grounds, the ones created by the City Improvement Board brought in a new dimension to the concept of public spaces. 

In restructuring the city the board had opted for a model in which residential clusters were planned around large open spaces or ‘grounds’. Of the many CIB colonies, the one at Mallepally or Moazzampura, had the distinction of being home to almost a dozen such ‘grounds’ and the more famous amongst them; Fani, Hasham, Bharat Union, Mughal and Zafar Shah, were instrumental in shaping the destiny of generations of youth who had little else to do in their spare time than get together and knock the ball around. 
    
The game of football and the presence of accessible grounds thus provided the sole opportunity for holistic development of physique and character to the youth of Hyderabad during this bleak period in the city’s history. It is on these dusty fields that young men of the city learnt the basics of survival. It was here that they understood the importance of teamwork and the need to stay focused irrespective of the odds. 
    
As a group, they learnt to celebrate wins and grieve over losses, all the while gaining immensely form each aspect the game. In time they emerged as men of substance who gallantly fought their way out of the seemingly futile position that an insensitive society had driven them into. So powerful has been the lure of these grounds that the local Municipal Corporator recently remarked, “When compared to other areas, there are more sports lovers in the Mallepally Division.” 
    
With the wheel of time taking a full circle, the youth of Hyderabad are once again the target of prejudice and oppression. It is time yet again to rekindle an interest in sports for effective character building and hastening the process of making men out of boys. With football still the most potent medium through which a productive tapping of inherent qualities can be achieved, once again the mantle of responsibility had fallen on another legendary footballer of the city. 

Indian International and Olympian Mohammed Habib, has taken on the challenge to add a new chapter to the annals of football history of Hyderabad. Habib presides over daily routine at the Hyderabad Sporting ground at Vijaynagar and along with his group of dedicated National and State veterans, has succeeded in bringing about a revival of interest in the game. And as tribute to a great benefactor of the city, Hyderabad Sporting has befittingly named its annual tournament in memory of Rai Janki Pershad. 

Exclusive: Salman Khan Opens His Heart On His Filmy Career

By M H AHSSAN | INNLIVE

Shah Rukh Khan's role as the Team India coach Kabir Khan in the hockey drama Chak De! India (2007) earned the superstar rave reviews.

But several years down the line, it emerged that SRK was not the first choice for the role - director Shimit Amin had previously approached Salman Khan. But Salman turned down the part, and Amin took the project to Shah Rukh.

Focus: Woman Boxer Awaits Reward Amid Political Turmoil

By Aeman Nishat / Hyderabad

Hyderabad's brilliant boxer Nikhat Zareen (17), who won a silver in the World Youth Women’s Boxing Championship in Bulgaria, is eligible for the cash incentive according to the State’s sports policy

She arrived in the city hoping to meet Chief Minister N. Kiran Kumar Reddy after her recent silver medal winning performance in the World Youth Women’s Boxing Championship in Bulgaria.

But, 17-year-old Nikhat Zareen has been unable to do so and is staying put at her uncle’s place at Ahmednagar as the political developments have kept the powers-that-be quite busy so as to spare time for this champion boxer.

When Rahul Gandhi learnt boxing

By Kajol Singh

Rahul Gandhi may be having many commandos to defend him but the young politician believes in self-defence and learnt some boxing skills from India's first Dronacharya awardee Om Prakash Bharadwaj.

The veteran coach said that Gandhi learnt techniques of boxing from him for two months last year with the objective of keeping himself physically and psychologically fit for a busy political life.

"It was a great opportunity for me to train Rahul Gandhi in boxing for two months last year," said Bharadwaj.

"In the beginning I was also surprised why he wanted to learn boxing because I was sure that he was not going to box in the ring. But later I realised that he was keen to have some knowledge about the art of self defence," he added.

The 70-year-old coach-cum-commentator said Rahul had great interest in sports and he was also a good shooter, swimmer and horse-rider.

"I observed that he likes sports. He is a good swimmer, shooter and horse rider. He is interested to have elementary knowledge in various activities and keep himself busy.

"He believes in making efforts and does not waste a single minute," Bharadwaj said.

The former boxer rated 39-year-old Rahul as a great learner, who is physically very fit.

"You won't believe but he was too good and had prior knowledge of a few boxing techniques. He would also discuss about the game's various techniques.

"I found him physically quite fit. For instance, knowing his busy schedule I kept for him light training and for the warm-up would ask him to run one round of his residence ground. But he would ask me if the drill was enough and run two more rounds.

"During the strenuous work-outs on punching pad also I never saw him tired," Bharadwaj said.

The caoch was all praise for Rahul's humility and was completely bowled over by his manners and etiquettes.

"One day when I wanted some water to drink, instead of asking any attendant he himself rushed to the kitchen to fetch me water. On another occasion, when he was escorting me to their gate, Soniaji called him but he replied 'let me see sir up to the gate and then I will come'. What better behaviour and etiquette I can expect from such a top youngster of the country?" he said.

Bharadwaj also recalled when Priyanka Gandhi Vadhra also tried her hand at boxing during one of their practice session.

"One day Priyankaji showed her interest in working on the punching pad, saying 'main bhi boxing karungi'. I went to Soniaji, who was sitting nearby, and requested her to allow Priyankaji and told her Indian women were already world champions in boxing," said Bharadwaj, heavily impressed by the top family of the country.

Celebrity Endorsements: Poster Boys & Divas Of Real Estate

Celebrity endorsement, as a marketing strategy, has gone viral amongst Indian real estate companies today. From master blaster Sachin Tendulkar to Bollywood diva Sonam Kapoor – celebrities can be seen endorsing a whole lot of real estate entities and their projects. But does it really work to the point of boosting sales? 

What is so common among cricketing icons like Sachin Tendulkar, M S Dhoni, Yuvraj Singh, and Bollywood beauties like Deepika Padukone, Sonam Kapoor, Kajol and their male counterparts like Akshay Kumar, Ajay Devgan, Mohanlal and Mammootty? 
Well, these — and many more — celebrities from sports, Bollywood and glamour world are today the poster boys and divas of different realty firms, which are keen to encash upon their pan-Indian appeal and familiarity. From selling fast moving consumer goods to dream homes, the concept of brand ambassadors has become a rage in the country. It has emerged as a lowest common denominator item in advertising, to act as a kind of warrantor as well as differentiator in an uncertain and ‘me-too’ market. 

So much so that real estate companies are roping in brand ambassadors to improve their brand connect, even if celebrities have no brand fit. For, the immediate objective of these developers is celeb-linked awareness building. They feel the endorsement news reaches the customers at a much faster pace than any other communication modes and creates an instant impact. 

While film actress Sushmita Sen happens to be the brand icon of Assotech Ltd, it is Mahendra Singh Dhoni in the case of Amrapali Group. Former actress Twinkle Khanna aka Tina, has joined the Supertech bandwagon to endorse their ORB project — a circular shaped 40-storeyed luxury homes development at Sector 74, Noida. After quitting her film career more than a decade ago, Twinkle has taken upon herself the design of this 50-acre property. 

The reigning diva of Hindi film industry, Kangna Ranaut, has been roped in by Ajnara India to endorse its projects and in the case of Prateek Group, not one but two celebs are enhancing its brand image — Rajeev Khandelwal and Prachi Desai. Another real estate entity, Krrish Group has roped in dusky damsel Bipasha Basu to endorse its recently launched first project — Provence Estate in Gurgaon with apartments of an average area of 5,800 sq ft. 

Some developers have chosen to pick regional celebrities for adding zing to their advertisement campaigns. Of late, two Kolkata-based real estate companies have roped in Bong celebrities — Konkona Sen Sharma in the case of the Eden Group projects and celebrated musician Bickram Ghosh and his actor wife Jaya Seal for Paharpur Pragnya Realty to endorse its upcoming project in Barrackpore. Significantly, the Ghosh couple happens to have also invested in a property in the company’s first project, Genxx Valley in Behala, located on the southern fringes of Kolkata. Well, the list of popular icons endorsing real estate companies is long-drawn, with newer faces being added to it, frequently.

Brand Versus Icon 
It seems to have become difficult to market a real estate project without the endorsement of celebrities these days. With property prices touching the roof, real estate developers are pulling out all stops to lure customers. However, is selling a property costing `1 crore, as easy as selling a beauty product costing `50? Aren’t the basic parameters of transparency, credibility and honest delivery getting undermined in this process? 

Says Ambi M G Parameswaran, executive director & CEO, Draftfcb+Ulka, “Real estate companies are trying the last trick in the book. In a parity market with a lot of clutter, a well-known celebrity can, of course, help a brand get recall and recognition. FMCG brands have been resorting to this trickery for many years. The big difference is the fact that FMCG products are, by and large, low involvement purchases. Apartments, on the other hand, are very high involvement purchases, so using celebrities for selling homes is at best a risky exercise.” 

India being a celebrity-obsessed nation, celebrities can work in the realty sector just like in any other space. The main reason for more realty players to opt for celebrities is the expected rise in real estate prices. While an educated or savvy buyer may not be influenced by such exercises, but even in that circle, a buyer inclined towards films or sports wouldn’t mind getting swayed away by the star power. 

Anil Kumar Sharma, CMD, Amrapali Group disagrees that that real estate firms bank more on celebrity endorsement than the important parameters of good quality, value for money and timely delivery. “I strongly believe that brand ambassador and company’s goodwill are intertwined. As Dhoni has to keep performing well as the captain of Indian cricket team, in the same way, we have to keep alive our customers’ trust by providing them properties in a given time-frame, fulfilling all parameters,” says Sharma. 

So, do consumers really get influenced by the presence of brand ambassadors, while finalising their property purchase decision? “Frankly, we won’t buy a flat simply by seeing a celebrity as its ambassador. Of course, homes are a lifetime investment and there are many other factors that one has to look into before investing one’s hard earned money. We would want to invest with a credible developer who has a clean balance sheet and track-record. We adore Sachin Tendulkar, but that doesn’t mean that we will blindly buy a home endorsed by him,” say Hanoosh Kodakkat and Fariha H, an NRI couple living in UAE. 

Likewise, Realty Plus quizzed over 50 customers looking to invest in real estate across India. Majority of them said that it would make little impact if a project is endorsed by a celebrity or not. They said that real estate is purely a different ball game and it is not advisable to invest lakhs or crores of rupees, simply charmed by brand ambassadors, when it is a known fact that they are paid for their job. 

Disregarding Brand Fit 
At another level, more often than not, the celebrity is remembered, while the brand is forgotten. “One must find out whether the brand positioning fits the usage of a celebrity or is it a forced affair? Sometimes, the credibility factor also is diminished by using an incongruous star. If the project has many USPs and salient features, spend the budget to communicate these features rather than wasting it on paying some star,” says Kunal Banerji, president marketing at M3M. 

But, celebrity endorsement has started to fit in, as far as real estate industry is concerned, claims RK Arora, CMD, Supertech Ltd. “In my view, such endorsements help you gain the required attention of customers in the face of cut-throat competition, but still, the desired credibility comes from quality construction, good value for money and timely delivery of the project. We were more than satisfied with the response we received for ORB, which was endorsed by Twinkle Khanna.” Ananta Singh Raghuvanshi, director, DLF Homes strikes a balanced view, saying, “Irrespective of the industry, the power of celebrities in influencing the consumer’s purchase decision cannot be underestimated. It is an accepted fact that celebrity endorsement can bestow special attributes upon a product. However, if a celebrity can enhance the merits of a brand, in changing times, a reverse has been seen too. Moreover, the aspirational PR coverage and instant brand recall can invest a developer with a temporary credibility only.” 

A Selling Proposition? 
It is a moot question whether in today’s real estate market, cluttered with celebrity brand ambassadors, the buzz created by them ultimately helps clear up piling inventories and boosting sales. 

Says Prashant Tiwari, MD, Prateek Group, “The so-called marketing mania works only for a new company which is little, or not at all, recognised. For creating a buzz about themselves or any new project which they might be planning to launch, these kinds of players suddenly hire the services of a brand ambassador. But the growth in sales can never be achieved by simply hiring famous faces.” 

Agrees Pranav Ansal, chairman, Ansal API, “Roping in a celeb can help a company to grab the initial attention but ultimately it’s the 4P’s (price, product, place, positioning) that help to boost property sales. When a buyer makes a decision to invest in a project — quality, price and delivery top his list and if the product doesn’t meet these yardsticks, no amount of celeb value can influence the buyer’s decision.” 

Good Strategy For Expansion 
Once a nascent concept, celebrity endorsement has today become the trendsetter in the country’s real estate market. In Delhi-NCR alone, there are over 20 firms which rely upon celebrities to market their properties. While the trend is quite prevalent in Western and Northern parts of the country, Southern and Eastern regions have just a few celebrity-endorsed real estate firms and projects. 

These variations apart, big real estate players have deep pockets and a face with pan-India appeal may help them when they expand their footprints. 

Says Honey Katiyal, CEO, Investors Clinic, “Delhi–NCR based real estate developers are enrolling celebrities as their brand ambassadors for encashing their national status. With the expansion of real estate sector, the customer base has grown manifold, which has underlined the need to reach out to customers in a way that they become confident enough to buy houses, which normally cost a lifetime’s savings.” Katiyal’s company has ace cricketer Yuvraj Singh, now also an epitome of a courageous battle against disease, as its brand ambassador. 

Pune-based company Amit Housing has recently signed master blaster Sachin Tendulkar as brand ambassador in a high-ticket deal, reportedly running into several crores. Does the company — with projects mostly in Pune or surrounding areas — really need Sachin’s iconic stature to sell projects regionally? 

Reasons out Katiyal, “Celebrities choose the brand they promote very carefully. They bring in their rapport and goodwill to the company and help in giving initial boost to its services/products. Beyond that, however, what matters is the strength and performance of the company.” 

Affordable Versus Luxury Segment 
Though high net worth individuals (HNIs) love to flaunt the luxury status of their homes, buying a home is an important investment that a middle-class family makes, which hinges upon value for money, appreciation potential and location of the property. While the concept of brand ambassadors does enjoy a degree of traction in ultra-luxury residential projects, there has been a “lack of success” when it comes to promoting mid-income housing projects through brand ambassadors in regional markets. 

In southern India, where there is a greater fan following for film stars than other regions, there are just a few companies which have roped in a celebrity to sell their projects. 

Bengaluru-based Oceanus Group has Mollywood star Mohanlal to endorse its projects. The company, which has several projects in Kerala, recently offered special discounts to celebrate the star’s birthday. Another Mollywood star Mammootty endorses Kochi-based real estate firm Pearl Infra, while cricketer S Sreesanth is the face of Mather Projects. 

Avers Dr JMA Bruno-Mascarenhas, author of medical books, based in Chennai, “Here, I don’t think the trend is so prevalent. If I see a celebrity endorsing a project I would think that it will be overpriced because of the endorsement and may not further consider it. In South, people are more concerned about the basic parameters of realty development.” 

Says Jim Phillip, assistant regional manager, ICICI Prudential Insurance, Kochi, looking to invest in residential real estate in the city, “Celebrity endorsement would definitely enhance the brand recall of a project. But when it comes to buying it, celebrity factor will have little influence over buyers like me.” 

In the Eastern region of the country too, the market is extremely conservative where purchases are made by common sense, irrespective of brand ambassadors. 

Glamour’s Grey Spots 
Recently, well-known singer Yesudas was in a soup for allegedly promoting a Kochi-based real estate company called ‘Apple A Day Properties’ whose promoters are presently evading the arm of law after misappropriating investors’ money. 

This is one of the grey areas of celebrity endorsement: fraudulent advertisements endorsed by celebrities. Shouldn’t the so-called brand ambassadors be held liable for issues like cheating in real estate or financial products? 

This is what Bollywood actress Genelia D’Souza had to face when she was recently summoned by the Andhra Pradesh High Court to explain her role as brand ambassador in the controversial real estate project called ‘Anjaniputra.’ 

The episode points to the vexatious issue of dealing with cases of cheating involving a real estate project endorsed by a brand ambassador. While there are no easy answers to these questions, consumers must tread a cautious path while firming up their property purchase decisions. 

Passing On The Cost? 
While the celebs are fuelling a new trend in the realty space, their endorsements — be it at project level or company level — won’t come for cheap. Is the huge endorsement fee again a burden on the customer’s pocket? What will a customer get, if the project has or not been endorsed by a celebrity? Of course, only a home to live! 

“Be it realty or any other segment, the fees charged by brand icons generally do not vary much. The cost depends on the type of celeb a company chooses. An SRK, Amitabh or Dhoni will cost more than someone like Neil Nitin Mukesh or Kailash Kher. One may get a reasonable rate from brand ambassadors for good, recognised national brands as compared to brands that aren’t very popular where the celeb may charge a premium,” says Das Blah, managing director, KWAN Entertainment. At times, says he, compensations are made in terms of property packages. “If an icon that has charged `5 crore, is offered a property worth `2 crore, I don’t think he will decline, given the ever-rising real estate prices.” 

Interestingly, few listed companies are keen about doing promotional activities using celebrities. 

Behind The Veil 
While having celebrities to endorse a product might lead to an increase in property costs, another debatable issue pertains to the use of real estate endorsements by celebrities as a channel to route and park their unaccounted wealth. 

“Today, many real estate companies are associated with people who have black money and other benami operations. Unlike Swiss Banks these days, properties are the best place to park your unaccounted wealth away from the glare of income tax sleuths. Yes, when a celebrity is roped in, there is obviously a brand connect but more than it, there are other hidden aspects to the deal as well,” explains a Delhi-based police official, who did not wish to be named. But, none of the developers we interviewed shared any financial details regarding their particular deal with their celebrity icon. 

Anil Kumar Sharma of the Amrapali Group strongly denies the possibility of any behind-the-scenes transactions. “It’s an irrelevant question, there is nothing dubious involved in any of our deals with a celebrity. We spend money on marketing where these costs are included. The price of property remains the same and there are less chances of price appreciation because of brand ambassador.” “The ambassadors are chosen at the company level to boost its brand equity rather than selling just one project. It is done because a brand has to be associated with the overall vision of the company, which is always kept in mind in all the projects,” observes Katiyal, declining to share his company’s deal size with Yuvraj Singh. 

Rakesh Mahajan, director, Nirala Developers, voices a similar view, “We are using our brand ambassador at the corporate level as we want to register ourselves in the mind of consumer as a brand rather than promoting a single project. Brand endorsement at the company level works better because once you have registered your brand then it becomes comparatively easier to promote respective projects.” 

Explains Prashant Tiwari of Prateek, “Whenever we hire a celebrity we only pay them their fees. We don’t offer them any stake in our project. In our company, the fund for celebrity endorsement is a part of the budget which we allocate for media promotions and advertisements. This spend is 1-2 per cent of our turnover.” 

Rounding Off 
As for the overall efficacy of celebrity endorsement as a marketing strategy, no amount of it can help resolve a credibility issue like a negative image on delivery, quality and consistency of a real estate offering. The developer community has to steadfastly follow the basic rule of transparency, credibility and honest delivery as branding helps only when these parameters are ensured. In the ultimate analysis, a real estate entity’s brand name plays the most significant role, besides other aspects. The consumers have come of age and no amount of celebrity endorsement can woo them if the product lacks substance.