The Board of Cricket Control In India (BCCI) has announced that it will not permit IPL franchises to finalize any form of trade in Cryptocurrency. This decision has not gone down well with some of the IPL franchise owners. That is primarily because cricket tournaments have turned into major money-making machines lately and doing away with cryptocurrencies will cause heartburns in several IPL team camps.
Cryptocurrency Companies Already A Part Of The Cricket Fraternity
Companies handling and promoting cryptocurrencies are slowly making their foray into the mainstream economy of the country. The IPL is a great brand to invest in. It is a sure-shot way for any entity looking to reach out to India’s vast market and make huge profits. So it does not come as a surprise that several cryptocurrency companies have made associations with IPL teams.
Companies such as CoinSwitch, CoinDX and Kuber had made their presence felt in the recently-concluded ICC Men’s T20 World Cup held in Oman and the UAE. They had injected a sum exceeding INR 50 Cr into the tournament’s cashbooks.
IPL Franchises Set To Lose Huge Sums Of Sponsorship Money
As preparations for next year’s edition of the IPL are in full swing, teams have already begun working over major sponsorship and other associate deals with major companies.
If internal sources are to be believed, two IPL team-owners have been openly vocal about their disappointments with the BCCI’s latest stance. One of the members of an IPL team’s managing committee spoke to the media and had to say this under conditions of anonymity- “It’s a major opportunity loss. The kind of money they were offering for the main sponsorship was 1.5 times what the current sponsor is paying. They wanted to build their brand with our association and were ready to pay for that.”
The thing that is hurting the teams most is the possibility of losing vast sums of sponsorship money due to the ban on cryptocurrency. Seeing as the organising boards of the franchises utilise the revenue that comes from sponsorship deals, it will most likely affect their buying power in the upcoming auction as well.
BCCI Firm In Its Stance On Cryptocurrency
The BCCI has made its view about the situation with cryptocurrency clear to the IPL stakeholders. It has asked all teams to refrain from striking any kind of deal with cryptocurrency companies. It has also informed broadcast rights holders Star Sports Network and Disney+Hotstar to maintain distance from all such companies. The seriousness with which the BCCI is dealing with this issue has raised eyebrows in many quarters.
On being sent enquiries by media-houses seeking a response, the BCCI has not yet commented on the issue. It remains to be seen how well the BCCI handles the displeasure it has caused among the circle of IPL franchisee owners. Face-to-face interaction between the media and a BCCI spokesperson along with representatives from IPL teams, is the need of the hour.
Political Clout Over BCCI’s Position
It is pertinent to note here that the International Cricket Council (ICC) does not have any mandate going against cricket bodies inviting revenue via cryptocurrency dealers. However, as observers are of the view, the BCCI’s move to ban cryptocurrency from the shadow of the IPL has a political angle to it. This is because the current BCCI Secretary happens to be the son of Union Minister Amit Shah and the ruling party (BJP), is set to introduce a bill concerning the regulation of cryptocurrency in India this upcoming Winter Session of the Parliament. It will be a waiting game for the parties who are invested in the legitimacy of cryptocurrency in India now. Whatever happens in the lawmaking body of the nation will make or break a lot of hearts and deals.
A source from within the BCCI interacted with the media and had this to say on the issue- “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.”
In the last few months, questions relating to cryptocurrencies have been doing rounds in government circles. The Governor of the Reserve Bank of India, Mr Shashikanta Das has asked for a total ban on cryptocurrencies.
Talking about the current climate of the Indian economy where there have been doubts about the long-term viability and legitimacy of cryptocurrencies, the BCCI source added, “Till there is some clarity, he may not be seen allowing crypto ads. The board, thus, would rather err on the side of caution.”