IPL MEDIA RIGHTS E-AUCTION
IPL in the 2023-2027 cycle is likely to have two separate media rights partners for Tv and Digital. © BCCI/IPL
Andy Kaplan, a former head of Sony’s India media business, had a theory about Walt Disney’s plans for the IPL media rights. “They have the balance sheet. Whether they have the will is the question,” the US-based media expert told Cricbuzz providing a perspective on the California firm’s business strategy.
It is not yet confirmed if Disney indeed matched their business acumen with will at the e-auction. An official announcement from BCCI is yet to be made but there are chances that two separate entities may have managed to grab the television (Package A) and digital rights (Package B) respectively. The digital rights, it is learnt, was bagged at a huge cost of INR 50 crore per game, more than 50 percent of its base price of INR 33 crore for a five-year worth of INR 20,500 core.
The television rights, which were sold for INR 57.5 crore per game went at just about 17 percent more than the INR 49-crore reserve price. Its five-year value is INR 23,575 crore with the grand total from Package A and B adding up to INR 44,075 crore.
With Package C auction paused at INR 18.75 crore, the digital value of the IPL is soaring to unexpected heights. It is not clear who are the competing bidders for the Package C but the winners of the digital rights (Package B) will have a right to challenge them and seek a rebid. The developments point to further escalation in the digital rights price, which could very well overtake the revenue from the television rights. How big the final number should be known only by Tuesday (June 14), but all indications are that it will be around INR 50,000 crore, give or take.
But going forward, the BCCI will have a task on its hand to deal with two commercial rights partners of equal weight. So far, the IPL rights were held by one broadcaster, Sony first and Star later. It is a first of sorts in Indian cricket and Kaplan feels it is not an ideal situation.
“Splitting the rights clearly helped the BCCI maximize value. However, the trend around the world is for one broadcaster to control all rights to give the consumer the most flexibility and user experience. It’s ultimately not good for the consumer which has to take on two subscriptions to maximize utility,” the American media expert said. However, it is not a bad situation to be in for the BCCI and Indian cricket.
Shantha welcomes BCCI move
Obviously satisfied with the revenue flow, the BCCI announced an increase in monthly pension for men, women and umpires with immediate effect. “The welfare of our cricketers, be it former or present, is a top priority, and increasing pension amounts is a step in that direction. The BCCI values the contribution the umpires have made over the years and this is one way to express our gratitude for their diligent services to Indian Cricket. A total of around 900 personnel will get the benefit of the scheme with more than 75% of the beneficiaries getting a 100 % raise,” the BCCI secretary said.
The move was welcomed by Shantha Rangaswamy, a former India women’s team captain. “As a former cricketer and cricket enthusiast, I congratulate the BCCI in general and Mr Jay Shah in particular for the stupendous success of the IPL e-auction. I personally feel he is single-handedly responsible for its success. Secondly I would like to thank him on behalf of the Indian cricketers association and all former cricketers for enabling the former players to make ends meet in this era of inflation of prices,” the BCCI apex council member said.
Source: Cricbuzz