Mark Weaden
The IPL franchises are upset to find that the ICB has decided to ban all deals with cryptocurrency exchanges
Much like China, India has had a long and complicated relationship with crypto. The ban comes from the BCCI, which controls the IPL, the biggest cricket league in the world, where teams brandish the sponsorship logos of many of the biggest companies.
There has been a growing number of cryptocurrency deals in the past couple of years. We’ve seen deals with major U.S. leagues like the NFL, NHL, and NBA offering personal, as well as team sponsors. With crypto a hot topic in sport, as well as with the Indian government, it’s no great surprise to see the ban.
Some IPL franchises unhappy with the decision
As the league commands the biggest and best players in the world, there are also some of the biggest sponsorship deals in the sport in the IPL. Certain franchises have huge amounts of investment into the team from private companies, with crypto sponsorships the latest off the conveyor belt the loss of crypto exchanges ahead of the 2022 season is difficult to swallow for certain teams.
The board has stated it doesn’t want the franchises to strike a commercial deal with crypto companies until the Indian government brings much-delayed regulation to the sector. There are two franchises in particular that have been frustrated by the deal, as they were approached by crypto exchanges for the upcoming season and presumably had deals pending.
A statement from one executive of one of the teams bereft as a result of the decision read “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.”
While the franchises await something more concrete from the cricket board, it’s clear that the nature of this ban is entirely politically motivated. The board appreciates that they’re a sports league and that crypto regulation is a major point of contention for governments across the globe.
A source for the BCCI said on this “While the members of the IPL governing council may not have an issue with cryptocurrency exchanges advertising, it’s a matter of optics. BCCI secretary Jay Shah is the son of the union home minister, and the central government is in the process of bringing a crypto bill in the upcoming winter session of parliament. Till there is some clarity, he may not be seen allowing crypto ads.”
