Asim Ansari Saqibi
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The ITT for all rights in the Indian sub-continent and overseas is expected to be for a period of 10 years. © BCCI
[size=large][size=medium]The world's fanciest cricketing roadshow the Indian Premier League (IPL) is ready with its blueprint for the next 10 years, looking to unleash this month, a never-seen-before display of financial fireworks in the game.
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Sources told TOI on Wednesday (September 7) that the Board of Control for Cricket in India (BCCI) has given IPL's existing rights holder Sony Pictures Network India (SPNI) "a 10-day window to arrive at an understanding that a broadcast rights deal of such high value can't be held inside a closed room and needs to undergo a transparent bidding process".
The 10-day window is scheduled to end this week and it is learned that BCCI is ready to issue an Invitation To Tender anytime later this month. SPNI has maintained that there exists a "first rights clause" in their IPL contract, under which they had written to BCCI to give them a 'final written offer' to renegotiate the telecast deal. BCCI is learned to have told SPNI that no such "final written offer can be given" considering the Supreme Court mandate that urges transparency in all financial deals.
The Board is firm that the only way forward is for interested parties to go through a tender process. "Gone are those days when Lalit Modi used to conduct deals the way he did," said an industry bigwig, referring to the 2008 IPL broadcast rights deal with World Sports Group. "It is clear that no deals will now be conducted outside of an open bidding process," a source said. "The BCCI has written to SPNI, informing them the same and it is for them to agree to take part in a fair bidding process," the source added.
There have been allegations already that the BCCI went back on its own word and sold the ground rights for the two Twenty20 matches in Florida without a tender but the board says there was little time to work things out for the US matches, given the short timeframe.
TOI also found out more exclusive details on what the BCCI is intending to unleash shortly: Broadcast and digital rights for the Indian sub-continent are likely to be split and tendered separately .
There is intense speculation that the BCCI could be expecting just the Indian telecast rights to be sold in the excess of US$2.5b (approx Rs 16,000 crore) for the next 10 years. If the overseas market valuations are to be considered solely based on expectations at the moment the board could be potentially looking at an overall income of close to US$3b or more from the overall media rights of cricket's fanciest league.
Sources in the know of things say SPNI will always have the option of heading to court, citing their existing IPL contract under which they have the "first rights of negotiation". However, should they go to court, SPNI will have to bear in mind that BCCI's working policy on television contracts stipulates that they have the right to blacklist a broadcaster for 10 years if the latter opts for litigation.
[size=large][size=medium]Zee Group's ongoing court battle with the BCCI is a case in point. BCCI sources expect some clarity on this by the end of the week..........[/size][/size]
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Sources told TOI on Wednesday (September 7) that the Board of Control for Cricket in India (BCCI) has given IPL's existing rights holder Sony Pictures Network India (SPNI) "a 10-day window to arrive at an understanding that a broadcast rights deal of such high value can't be held inside a closed room and needs to undergo a transparent bidding process".
The 10-day window is scheduled to end this week and it is learned that BCCI is ready to issue an Invitation To Tender anytime later this month. SPNI has maintained that there exists a "first rights clause" in their IPL contract, under which they had written to BCCI to give them a 'final written offer' to renegotiate the telecast deal. BCCI is learned to have told SPNI that no such "final written offer can be given" considering the Supreme Court mandate that urges transparency in all financial deals.
The Board is firm that the only way forward is for interested parties to go through a tender process. "Gone are those days when Lalit Modi used to conduct deals the way he did," said an industry bigwig, referring to the 2008 IPL broadcast rights deal with World Sports Group. "It is clear that no deals will now be conducted outside of an open bidding process," a source said. "The BCCI has written to SPNI, informing them the same and it is for them to agree to take part in a fair bidding process," the source added.
There have been allegations already that the BCCI went back on its own word and sold the ground rights for the two Twenty20 matches in Florida without a tender but the board says there was little time to work things out for the US matches, given the short timeframe.
TOI also found out more exclusive details on what the BCCI is intending to unleash shortly: Broadcast and digital rights for the Indian sub-continent are likely to be split and tendered separately .
- Overseas broadcast and digital rights need to be clubbed to derive maximum value from countries like US, Europe and Australia where digital rights attract far bigger valuation than television.
- Agents may not be allowed to bid for the rights for the Indian sub-continent but could be allowed to participate in bidding for overseas rights so as to ensure last-mile connectivity .
- There is heavy market speculation that given the advent of 4G services in India, platforms like Hotstar and Sony Liv among others could ensure serious competition for digital rights unlike the last time. Among other internationally big contenders, social media and internet giants Facebook and Google are learnt to be showing keen interest.
- The ITT for all rights in the Indian sub-continent and overseas is expected to be for a period of 10 years.
There is intense speculation that the BCCI could be expecting just the Indian telecast rights to be sold in the excess of US$2.5b (approx Rs 16,000 crore) for the next 10 years. If the overseas market valuations are to be considered solely based on expectations at the moment the board could be potentially looking at an overall income of close to US$3b or more from the overall media rights of cricket's fanciest league.
Sources in the know of things say SPNI will always have the option of heading to court, citing their existing IPL contract under which they have the "first rights of negotiation". However, should they go to court, SPNI will have to bear in mind that BCCI's working policy on television contracts stipulates that they have the right to blacklist a broadcaster for 10 years if the latter opts for litigation.
[size=large][size=medium]Zee Group's ongoing court battle with the BCCI is a case in point. BCCI sources expect some clarity on this by the end of the week..........[/size][/size]
- Up for sale: IPL broadcast and digital rights for India and overseas
- Potential bidders for broadcast rights in India: Sony Pictures Network India and Star India
- Potential bidders for digital rights in India: Facebook, Google, Hotstar and Sony Liv
- Potential bidders for broadcast rights overseas: 21st Century Fox, Sky UK, ESPN, Sony Pictures and other agencies
- Potential bidders for digital rights overseas: Facebook, Google, Hotstar
- Rights split or clubbed: Broadcast and digital rights for India could be split but clubbed for overseas to derive maximum value
- Who can bid: Anyone can participate in the tender process. Agents may not be allowed to bid for India rights but can bid for overseas rights
- Who cannot bid: Any party in litigation with BCCI
- Valuation expected: Industry speculation pegs India broadcast rights to sell to a tune of $2.5b and collective rights in excess of $3.5b
- Rights duration: Expected to be 10 years
,I really hope that SPN gets the IPL rights
