The Board of Control for Cricket in India (BCCI) has begun the process of a new title sponsor after Dream11 contract expired. The fantasy gaming giant had tied up with the board in a three-year sponsorship deal worth INR 358 crore, but the deal has been terminated prematurely.
Dream11 Exit Leaves Sponsorship Void
Dream11 signed the deal in July 2023, and will be the major sponsor of both men and women cricket teams. The brand logo was also displayed prominently on Indian jerseys, and this was one of the largest sports partnerships in India.
But the abrupt departure has created the confusion whether Dream11 will give up its relationship with IPL franchises. The company already has relationships with a number of T20 teams but it has not yet announced any of this.
This arose soon after the Indian Parliament passed the Promotion and Regulation of Online Gaming Bill. When the Bill passed both houses and received Presidential assent, it was then law. The Act punishes the advertisement and funding of such games which is punishable by up to five years in jail.
Government Law Impacts Dream11
Dream11 is the largest fantasy sports platform in India and has been estimated to have an 8-billion-dollar valuation. Outside India, it has international alliances, including being the official fantasy partner in the Caribbean Premier League, and title sponsor of the Smash T20 in New Zealand.
Dream11 has not been penalized financially in spite of its withdrawal of sponsorship with BCCI. The contract also had an agreement that cushioned the company against situations where government laws directly affected the operations of the company. This implies that Dream11 will not have to pay BCCI any amount of the INR 358 crore deal.
BCCI Faces Sponsorship Challenge
The BCCI is now scurrying to find a new sponsor as the Women World Cup and the Asia Cup are close. A new tender that will replace that of Dream11 will also be released by the board soon.
“Their (Dream11) representatives visited the Board office recently and informed us that they are not in a situation to sponsor the teams anymore. There’s not much time left for the Asia Cup, but we are exploring options,” Sportstar quoted a BCCI official as saying.
This last minute change might affect preparations because it will be difficult to get a high-value sponsor within a short period of time.
Dream11 Ends Paid Contests in India
Dream11 also halted all of its paid contests in India after the passage of the Promotion and Regulation of Online Gaming Bill. The shift indicates the level of seriousness that the company is attaching to compliance with the new legislation.
The problem now facing BCCI is not only to recover the money lost through sponsorship but also to have an assurance of having its long-term commercial ties stable. In the case of Dream11, the failure demonstrates that fantasy sports companies are defenseless, in the face of the government regulations altering the game.
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