Cryptocurrency, betting and real-money gaming platforms (except fantasy gaming platforms) have been barred from participating in the bid for the new lead sponsor
The BCCI released the tender as embattled edtech startup BYJU’S $35 Mn contract as the front jersey sponsor expired last financial year
The move to bar crypto platforms is in line with the crackdown by the Centre on some of the startups in the sector and the RBI’s opposition to cryptocurrencies
The Board of Control for Cricket in India (BCCI) has barred cryptocurrency platforms from participating in the tender for the national cricket team’s next lead sponsor.
The BCCI has also prohibited companies belonging to categories such as real-money gaming (except fantasy sports platforms), betting and athleisure wear from participating in the bids.
“The attention of the interested parties is brought to Annexure B which details certain brand categories in which the interested party cannot bid,” said BCCI secretary Jay Shah in a press release.
The prohibited categories include:
- Athleisure and sportswear manufacturer
- Alcohol products
- Betting
- Cryptocurrency
- Real money gaming (barring fantasy sports gaming)
- Tobacco
- Platforms that could one offend public morals such as pornography, among others
The move to ban some of the emerging categories is expected to largely hit the prospects of new-age tech startups that largely operate in these domains. While ads related to alcohol, tobacco and porn (also included in BCCI’s advisory) are more or less already banned, it is the inclusion of categories such as cryptocurrency that have raised eyebrows.
However, the move is not at all surprising. In the recent past, the Centre has actively cracked down on betting platforms, and directed digital platforms and TV channels against carrying ads related to betting, especially those from overseas companies.
In the case of cryptocurrencies, the union government, with tacit support of the Reserve Bank of India, has formulated policies to dissuade users from investing in cryptocurrencies. In the past, senior RBI officials have termed cryptocurrencies a threat to India’s macroeconomic stability and even called for an outright ban on such virtual digital assets (VDAs).
However, the move is expected to not go down well with crypto startups that have faced the wrath of authorities and investors alike ever since the collapse of big names in the industry such as FTX, Vauld, among others.
Meanwhile, fantasy sports gaming platforms, which include the likes of Dream11, MPL, and Games24x7, have been kept outside the ambit of this prohibition.
The diktats were part of the BCCI’s media advisory inviting applications from interested parties to bid for the lead sponsor rights, which allow companies to brandish their logo on the team’s front jerseys.
The move to commence the search for a new sponsor coincided with the expiration of BYJU’S contract with BCCI for the front jersey rights. In January, the edtech decacorn’s cofounder and CEO Byju Raveendran said that the company would not continue with the sponsorship rights noting that it had already achieved the kind of brand awareness it needed.
Marred by regulatory headwinds, mounting losses and adverse market conditions, BYJU’S also plans to pull out of certain branding partnerships with the other international agencies such as International Cricket Council (ICC), and Federation Internationale de Football Association (FIFA).
Meanwhile, BCCI plans to rush the process and likely expects to wrap up the bidding process before the commencement of the upcoming India versus West Indies series. While Tata came to the rescue of the BCCI when a similar fracas erupted after Vivo pulled out of IPL sponsorship, it remains to be seen who grabs the rights for jerseys for the national cricket team.
