Some IPL Franchises are dismayed by the order.
Board of Control for Cricket in India (BCCI) has barred IPL teams from dealing or associating with any crypto company, according to an Economic Times (ET) report.
These teams were in talks with crypto exchanges for sponsorship deals during the next IPL season.
Directive from BCCI to IPL Teams
The cricket regulator has barred all the IPL franchises until regulatory clarity appears. It could be because of the criticism of the advertisement campaign by the crypto exchanges,
During the meet between the Parliamentary Standing Committee on Finance and the crypto players of India, this issue was raised. Even during the high-level meeting chaired by Prime Minister Narendra Modi, the advertisements were labelled misleading.
ET revealed that BCCI had sent an official directive to all teams and media rights holder Star & Disney India. Some of the franchises are dismayed by the order.
“It’s a major opportunity loss. The kind of money they were offering for the main sponsorship was 1.5 times of what the current sponsor is paying. They wanted to build their brand with our association and were ready to pay for that.”an IPL franchise executive
At least 4 franchises have confirmed that they were approached by crypto players.
Crypto exchanges reportedly spent more than INR 50 crores on advertisements during the T20 World Cup. This too vexxed some franchises. They question that why were crypto exchanges were allowed to partner with the International Cricket Council (ICC).
Exchanges Themselves Were Refraining from Advertising
On November 19, reportedly the exchanges are themselves refraining from advertising until regulators create some guidelines.
Both the news contradict each other. Coin Crunch India could not directly verify both the news.
If the exchanges are not advertising, then who approached the IPL franchises? It could be that some exchanges did not originally take the route of abandoning advertising or some exchanges reneged on their promise.
Or, maybe there is a communication gap between the stakeholders. Only the exchanges, IPL teams, and ET knows what really transpired.
IPL is one of the richest cricket leagues in the world. It is BCCI’s flagship tournament celebrated like a 2-month long festival every year. Since the pandemic began, sports events have lost a huge chunk of revenue from ticket sales. Advertisements then became an important source of revenue.