MEDIA RIGHTS
The much-deliberated closed bidding option has been denounced. © Getty
It’s official. The Board of Control for Cricket in India (BCCI) has denounced the much-deliberated closed bidding option and announced an online auction for its bilateral media rights. It has also, expectedly, separated the digital and television packages with no provision for a composite bid. These alterations have been the points of deliberation and were the leading factors in the prolonged delay in the release of the media rights tender.
The unveiled Invitation To Tender (ITT), made available for sale from Thursday (August 3), contains crucial information regarding two distinct packages. Package A exclusively covers India sub-continent television rights, while Package B encompasses India sub-continent digital rights and Rest of the World TV and digital rights combined.
Notably, Package B holds greater significance and its base price has been set at Rs 25 crore. Package A, in contrast, carries a base price of Rs 20 crores. The combined base price for both packages totals Rs 45 crore. However, it is imperative to note that the BCCI has attached certain conditions to these packages. If the combined value of both packages falls short of Rs 60 crore, the BCCI has said that it retains the right to cancel the entire process.
The bidding date is scheduled for August 31, and interested parties can access the ITT until August 25 by submitting a non-refundable fee of Rs 15 lakh (plus GST). Contrary to popular belief, the upcoming cycle spanning from September 1, 2023, to March 2028, comprises a total of 88 games, including 25 Tests, 27 ODIs, and 36 Twenty20 Internationals.
It is evident that Ernst & Young, the agency engaged by the BCCI, has advised the board to opt for the online method of sale. This strategic move is expected to yield higher returns compared to the closed system. However, it is worth acknowledging that a one-shot bidding approach also holds its own advantages.
The division of digital and linear rights aligns with expectations, especially following the BCCI’s rich experience with the IPL rights sale. During that instance, the digital rights surpassed the value of television rights and the grand total was $ 6.2 billion or Rs 48,390 crore for five years.
The BCCI has said that companies with a net worth of Rs 1000 crore are eligible to participate in the bidding. Its expectations appear to be modest as it targets a minimum price of Rs 60 crore from the auction. This is the value of the previous cycle of 2018-23, during which Disney Star India acquired global rights for Rs 60.1 crore across formats, culminating in an aggregate value of Rs 6138.1 crore.
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