The Indian cricket sponsorship landscape is about to undergo a huge change. According to industry estimates, the Indian Premier League (IPL) and Women’s Premier League (WPL) team’s financial health is at risk due to a new regulatory prohibition on fantasy sports advertising and sponsorships, which might cost them over INR 150 crore in annual revenues.
The rule, which forbids fantasy sports businesses from advertising on both broadcast and digital channels, has hampered one of Indian cricket’s most profitable commercial agreements. For IPL and WPL teams, many of whom rely significantly on fantasy sports revenue, the consequences are immediate and far-reaching.
Fantasy Sports: The Financial Backbone of IPL Sponsorships
Over the last five years, fantasy sports firms have established themselves as major sponsors in Indian cricket. Few categories have matched their propensity to invest at scale, and even fewer have been as active in purchasing premium properties across teams, leagues, and media.
Dream11, the industry leader, boasted front-of-shirt sponsorships with five IPL franchises: Gujarat Titans (GT), Kolkata Knight Riders (KKR), Punjab Kings (PBKS), Sunrisers Hyderabad (SRH), and Lucknow Super Giants (LSG).
Additionally, My11Circle was once the principal sponsor of LSG.
The ban on front-of-shirt sponsorships, which mainly cost INR 25 crore per franchise per season, will significantly impact team finances in the IPL 2026. These deals are more than just revenue generators; they are additionally fully integrated into the team’s marketing, merchandising, and digital strategies. Cutting them off without a clear replacement threatens to destabilize the pillars.
The Domino Effect on Cricket’s Commercial Chain
This regulation’s impact extends beyond the removal of a few logos from jerseys. Instead, it represents a domino effect that has the potential to derail Indian cricket’s overall commercial equilibrium.
While the IPL franchises are most visibly impacted, the WPL, which is still in its early stages of commercialization, may suffer even more acutely. Fantasy sports companies were among the few industries willing to invest heavily in women’s cricket, recognising its growth potential and social impact narrative. Now that those funds are no longer on hand, WPL teams may face a more difficult time attracting blue-chip sponsors in time for the 2026 season.
Unlike the centrally organised IPL and WPL competitions, which are owned and overseen by the Board of Control for Cricket in India (BCCI), the teams are privately owned and rely significantly on sponsorships to survive. For many of them, jersey sponsorship is the second-highest source of cash, after the BCCI’s media rights revenue share.
The timing of the prohibition could not have been worse. Several IPL teams are in advanced discussions about raising funds, either through stake dilution at billion-dollar valuations or, in one case, preparing for listing the team on the stock market. A sudden revenue shortfall of INR 25-30 crore challenges operations, requiring long-term partnerships with replacement sponsors.
Media and Ad platforms under pressure
Fantasy sports firms were not only major sponsors of teams; they were also among the top marketers during live cricket broadcasts, frequently outspending legacy consumer brands. Fantasy sports were routinely among the top five advertising categories on television throughout the IPL 2023-25, with high-frequency advertisements airing during prime-time matches.
On digital channels, they ran performance-driven campaigns and purchased premium ad inventory during live sports streaming. With the restriction, broadcasters and streaming platforms may see their ad inventory devalued, forcing teams to turn to alternative categories such as fintech, consumer tech, EVs, and D2C brands to compensate.
Powerplay for Sports Marketing Agencies
While the ban has caused short-term disruption, it also creates an unprecedented chance for sports marketing and sponsorship firms.
With about INR 150 crore worth of premier inventory, including front-of-shirt spots and top-tier digital branding rights, suddenly available on the market, there is now a unique opportunity to reshape cricket’s marketing mix.
Agencies that respond quickly can position these high-visibility assets in categories that have been waiting in the wings or building up marketing investments in India, such as BFSI, e-commerce, edtech, EVs, and emerging D2C brands.
A Cautionary Tale on Regulatory Risk
The episode also serves as a wake-up warning for Indian sports industry stakeholders: regulatory instability is no longer limited to gambling, cryptocurrency, or tobacco companies. Even popular digital industries can experience unexpected constraints, leaving considerable commercial gaps.
In the long run, this may encourage leagues, franchises, and rights holders to diversify their sponsorship base more judiciously, ensuring that no single category, no matter how deep its pockets, becomes too dominating.
