BCCI’s crypto diktat upsets IPL franchisees

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Mumbai: A few Indian Premier League franchise owners are unhappy with the Cricket Control Board in India over its diktat banning all dealings with cryptocurrency exchanges.

These franchises had sparked the interest of major crypto exchanges to become title sponsors or associates of their teams ahead of the next T20 cricket league season and had entered into negotiations. However, the Indian Cricket Council has told them that until regulations are in place for the crypto industry, no business deals with cryptocurrency players will be allowed.

ET has learned that BCCI has sent a directive to all team owners, as well as media rights holder Star & Disney India, to refrain from signing sponsorship deals with cryptocurrency exchanges.

Two franchisees, on condition of anonymity, confirmed to The Economic Times that they had to cancel the talks.

“It’s a major loss of opportunity. The type of money they were offering for the primary sponsorship was 1.5 times what the current sponsor is paying, ”said an executive. “They wanted to build their brand with our association and were willing to pay for it.”

What has upset some franchises is the fact that the International Cricket Council (ICC) has not had any issues with cryptocurrency players advertising or sponsoring its events. ET recently reported that CoinDCX and CoinSwitch Kuber spent over Rs 50 crore collectively on sponsorship deals during the ICC T20 World Cup.

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LOGIN An email sent to BCCI officials requesting comments did not elicit a response.

Executives of at least four franchisees have confirmed that they have recently been approached by crypto players. They asked not to be named.

A BCCI insider said the issue was more political in nature.

“While the IPL board members may not have a problem with advertising on cryptocurrency exchanges, it is a matter of optics. BCCI Secretary Jay Shah is the son of the Union Home Secretary, and the central government is in the process of introducing a crypto bill in the upcoming winter session of parliament. Until there is some clarity, it may not be seen allowing crypto ads, ”he said. “The board would therefore prefer to err on the side of caution.”

IPL is arguably the largest media property in India, which has helped companies develop brand affinity in India. A number of smartphone makers, as well as fintech and edtech startups have used the marketing power of IPL to gain instant validation and recognition.

However, on crypto, legal experts have raised red flags on the ads, fearing the ads suggest guaranteed returns or make exaggerated claims. Currently, there are no regulations on cryptocurrencies.

Already, the Governor of the Reserve Bank of India, Shaktikanta Das, has expressed his concerns and advocated for a complete ban on cryptocurrencies, claiming that these virtual currencies pose serious risks to the country’s financial stability. Lately, the best private banks have started to contact their customers to inform them about the risks associated with cryptocurrencies.

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