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    Bidding frenzy likely as BCCI brings open tender for IPL

    Synopsis

    The new television rights for the Indian subcontinent will last 10 years while digital media rights with a five minute delay after television transmission, will last 5 years.

    The new television rights for the Indian subcontinent will last 10 years while digital media rights with a five minute delay after television transmission, will last 5 years.
    NEW DELHI | MUMBAI: The Indian cricket board has announced an open tender for television and digital media rights for IPL T20, a move bound to excite frenzied round of bidding for the world’s most popular T20 tournament.

    “As we open the tender process, we want to be very transparent. This is going to be a historic bid,” Board of Control for Cricket in India (BCCI) president Anurag Thakur told mediapersons on Sunday. The current television rights are with Sony Pictures Networks, which will end after the league’s 2017 edition.

    The new television rights for the Indian subcontinent will last 10 years while digital media rights with a five minute delay after television transmission, will last 5 years. The combined media rights for rest of the world will be for 5 years, spread across six different groups.

    Rahul Johri, CEO of BCCI, said bidders for IPL television rights have to be non-news television broadcasters while digital rights is open to broadcasters as well as internet and mobile operators. A consortium too can bid but the lead bidders needs to conform to these criteria. The BCCI has also stipulated that no company which has litigation with BCCI can participate in the bid.

    Johri said that BCCI will have no obligation to accept the highest financial bid. “Deloitte will do the financial due diligence. If we get two very similar bids, Deloitte will help us decide which one is better for us.”

    Thakur said that Sony has been asked to participate in the bid process. “Sony has been a good partner. They have made efforts for IPL over the years. We have now asked them to participate in the bid. We have made it very clear that if anyone wants to be involved in the process can come and participate because we want to be fully transparent. We don’t want anyone to point a finger at us.”

    The original contract between BCCI and Sony stipulates that the two had to negotiate a new deal during a 60 days after the end of the 2016 IPL edition. Sony has made an offer to BCCI and the board was to respond within 10 days of the end of the 60-day period. An email questionnaire sent to Star seeking its reaction on the tender process initiated by BCCI did not elicit any response.

    The World Sports Group secured television rights for IPL for 10 years for $918 million and it further signed a deal with Sony, which then became the official broadcaster. This deal was renegotiated a year later and was bagged by Sony for $1.1billion.

    The new tender document will be available for purchase from September 19 while October 4 will be the last date to seek any clarifications from BCCI. October 18 will be the last date for purchase of the document.

    The bid has to be submitted on October 25 at 9.30 am and it will be evaluated and opened on the same day.

    Johri said that the five minute delay rule can be done away with if the same person gets both television as well as digital rights. Bids will have to submitted in two envelopes—envelope A for eligibility and envelope B for financial bid and signed media rights agreement.

    Star and Sony’s big bet on sports With SPN’s acquisition of Ten Sports, India is now a duopoly market in sports broadcasting with SPN and Rupert Murdoch-controlled 21st Century Fox’ Star India.

    Both Star India and SPN have substantially built their sports business in the last 4 years, spending top dollars to acquire rights of the sporting events.

    Star India has spent over Rs 20,000 crore on sports business, includingRs 3,851 crore for the BCCI rights for the period July 2012 – March 2018 and estimated $1.98 billion (Rs 11,880 crore) for ICC rights.

    Sony, meanwhile, had made its biggest investment on IPL, followed by FIFA world cups, the UEFA Euro cup, NBA, UFC etc. Recently, it acquired Ten Sports from ZEE for $385 million (Rs 2,600 crore).
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    1 Comment on this Story

    Peeush Trikha1394 days ago
    Exciting times ahead for the sports broadcasting!
    The Economic Times