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BCCI begins process to find new sponsor following Dream11's exit
Team India may enter the Asia Cup without a jersey sponsor as Dream11's partnership ends due to the government's ban on real money gaming platforms. The BCCI is actively seeking a replacement, but finalizing a deal before the tournament seems unlikely. This ban impacts revenue for fantasy leagues and gaming companies, potentially affecting other sponsorships like My11Circle's IPL partnership.
Team India might be without a jersey sponsor for the Asia Cup as Dream11 is no longer the partner following government's ban on real money gaming platforms under the Promotion and Regulation of Online Gaming Act.
BCCI has now has begun the process to find a replacement, which is unlikely to be finalised in time for next month's Asia Cup.
BCCI secretary Devajit Saikia confirmed that the deal with Dream11 has ended and BCCI has begun the process to find a new title sponsor for several national teams.
"Our stand is very clear. With government regulations in place, the BCCI cannot continue its sponsorship relationship with Dream11 or any such other gaming company. Under the new restrictions, there is no scope and we are facing a roadblock with Dream11," Saikia told PTI on Monday.
"So we cannot continue with them and therefore trying to find some alternatives, and that process is now ongoing. The vacant position of the sponsor is something that we are trying to fill and till now nothing has been completed. Once something happens we will let you know with a media advisory," he added.
The ban has affected the revenue generation of all fantasy league and gaming companies. The law states that there could be could be financial penalty up to Rs 1 crore or a jail term of three years in case of a violation.
Dream11 had won the tender for the Indian team, including the senior men, women, emerging (U23), U-19 men and women's teams in 2023 for a period of three years for Rs 358 crore. They will be breaking the contract with more than a year remaining but are unlikely to be penalised.
"The BCCI fully understands one of our sponsorship partner's plight. It is not their fault and unlike other issues of payment default, there won't be any penalty levied on Dream11. This is a government rule and full compliance is required and in the current scenario, there business will be impacted," a top official told PTI.
"Obviously BCCI's profits also get impacted on a short term basis and we now have to put new plans in place," he added.
The official said that it will be hard to find a new sponsor with only 15 days remaining for the Asia Cup.
"There is a process in place. We have to put an advertisement inviting bids to become title sponsor of the national team. First you invite bids, then scan and scrutinise the bids and then announce the winner.
"It is a process that takes a certain amount of time and needs to be done keeping legal modalities in mind," the official said.
Another fantasy gaming company, My11Circle was the fantasy sports partner of the Indian Premier League. My11Circle has pledged Rs 625 crore for a period of five years (Rs 125 crore annually). This is also in jeopardy now.
"Obviously, we are keeping a watch on proceedings. Any company dependent on real money gaming is going to take a huge hit. But for IPL, the BCCI has enough time even if any company pulls out. IPL start in mid-March next year and a process, if required, can be put in place," he said.
Source: EconomicTimes
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