Bidding for next IPL cycle could cross $2 billion

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Bidding for next IPL cycle could cross $2 billion



MUMBAI: With the Indian Premier League (IPL) proving to be a profitable cash cow for Multi Screen Media (MSM), it is expected that the price for the period (2018–27) could exceed $2 billion when the TV rights come up again for grabs.

The current deal with MSM expires in 2017 and is worth $1.1 billion. A report by GroupM ESP, the sports and entertainment arm of marketing services major Group M, and SportzPower, the sports business information resource, notes that Reliance Jio could well play a disruptive role in the bidding.

The report draws a parallel to BT’s move to acquire a piece of English Premier Football rights in the UK earlier in 2013. Breaking the traditional lock that sister network Sky had on it was the big news as far as UK football rights bidding was concerned.

The battle royale that is developing in the UK market over key football rights between dominant player Sky and telecom giant BT could well be replicated in the Indian market over the next five years, but with prized cricket properties being the bone of contention. Between the ICC rights and the IPL, it is the latter that will be the bigger draw, seeing as how MSM has garnered such massive profits from being the rights holder of the biggest property the sport has on offer. Of course, Star is also expected to chase the IPL rights and MSM will fight to retain it. With regard to the ICC rights, it is reasonable to assume that the next cycle (2016 onwards) will go for a higher price than $1.1 billion.

Then there are also the cricket rights for England and Australia, and the next tier would be football. For the three-year current cycle of English Premier League (EPL) rights, Star has committed $150 million. It can only go up after 2015.



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