BCCI Can't Penalise Dream11 Despite Early Termination Of Rs 358 Crore Contract Due To This Clause
Dream11 has informed the BCCI that it can no longer honour the Rs 358 crore contract.
- Dream11 ended its lead sponsorship of the Indian cricket team after the Online Gaming Bill became law
- Dream11 terminated most sponsorship deals early but faces no penalty due to a contract clause
- Dream11 had paid Rs 358 crore for a three-year lead sponsorship contract with the BCCI in 2023
Fantasy gaming platform Dream 11's exit as the lead sponsor of the Indian cricket team was only a formality after the introduction of the Online Gaming Bill. As the bill became the new law in the country, Dream11 could do little to prevent the shutdown of its major services. While the company is working to bounce back with another model, the development meant that they had to terminate most of their sponsorship deals early. However, despite an early termination of the contract, the Board of Control for Cricket in India (BCCI) cannot penalise Dream11.
"(Representatives of) Dream11 visited the BCCI office and informed CEO Hemang Amin that they won't be able to continue... As a result, they won't be the team's sponsors for the Asia Cup. The BCCI will float a new tender soon," a BCCI official told the Indian Express.
The report further added "won't be liable to pay anything" to the Indian cricket board due to a clause in the Rs 358 crore contract that prevented them from being penalised in case a new law put a halt to the company's core business.
Dream11's Reach Into Sporting Ecosystem
Dream11 acquired the rights to become the BCCI's lead sponsor in 2023, replacing educational technology venture Byju's. The sports-tech giant had agreed to pay the Indian board a sum of Rs 358 crore two years ago.
It isn't just the BCCI that will be impacted by the development, as Dream11 has been sponsoring leagues and cricketers all across the globe.
Dream11 also sponsors multiple IPL franchises and several athletes. The names of their brand ambassadors included the likes of Mahendra Singh Dhoni, Rohit Sharma, Hardik Pandya, Rishabh Pant, and Jasprit Bumrah. In 2020, Dream11 had also become IPL's title sponsor when Chinese firm Vivo withdrew due to India-China tensions.
Dream11 is also the official fantasy partner of the Caribbean Premier League as well as the title sponsor of Super Smash, New Zealand's domestic T20 competition. Considering most of these competitions don't enjoy the financial backing that IPL does, it's going to be difficult for them to survive in the coming months.
What Did The Online Gaming Bill Say?
"Unchecked expansion of online money gaming services has been linked to unlawful activities including financial fraud, money-laundering, tax evasion and in some cases, the financing of terrorism, thereby posing threats to national security, public order and the integrity of the State," the Bill stated.
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