Dubai: If the sale of media rights on Monday are any indication, then the Indian Premier League (IPL) at the turn of first decade is set to match the global money-spinning franchise leagues like an NBA or NFL. The Board of Control for Cricket in India (BCCI) will be richer by a staggering $2.55 billion (Rs 16,347.50 crore) by selling the IPL global media rights for five years from 2018 to 2022.
Star India has bagged rights as the highest bidder for the period 2018-2022 with a consolidated bid of Rs 16,347.5 crore. The announcement was made after an auction held by BCCI in Mumbai on Monday. Twenty-four companies had picked up rights papers to contest for the several rights up for grabs in the auction organised by the BCCI.
Global companies like Facebook, Amazon, Twitter, Yahoo, Reliance Jio, STAR India, Sony Pictures, Discovery, Sky, British Telecom and ESPN Digital Media purchased the bids, divided into TV and digital rights in the media auction held in Mumbai.
Star India edged out closest rivals, Sony which used to broadcast the IPL in India for the 10 years. The 11th edition will be aired on channels across the Star Network and live streamed on hotstar — Star’s digital platform — for the next five seasons. IPL media rights was divided into seven different categories — Indian television rights, Indian digital rights, the US, Europe, Africa, the Middle East and rest of the world.
The financial windfall, despite the BCCI being immersed in a pitched court battle, over improper administration of the body, is a big boost.
The increase in the bid money also reveals that the IPL, which was started in 2008, has grown over the years. In 2008 Sony had won a 10 year bid for TV rights for Rs 8200 crores ($1.28 billion). Star’s winning bid hence is a 158 per cent increase in the media rights value for IPL broadcasting.
Speaking to Gulf News, Dubai-based media entrepreneur Ajay Sethi, owner of the Nelson Mandela Bay team that will play in the new T20 Global league in South Africa this year, said: “The huge financial windfall for BCCI is not surprising, it was expected to be high. I feel that in the next five years that in all probability, Apple and Google may bid for it. Even big deals for sportsmen were never heard off till WorldTel signed up Sachin Tendulkar for a huge amount so similarly huge financial windfall for the BCCI should not be surprising. The future of sports is going to be through digital media. I am happy to see such huge money in IPL as it gives a boost to smaller leagues to set a benchmark.
“BCCI’s annual earning is now expected to soar to Rs 4618 crores ($723.75 million) a year with this IPL media rights contributing Rs 3269 crores ($512.33 million). In fact, IPL will now dwarf India’s international cricket as BCCI will earn 55 crores ($8.62 million approximately from every IPL match compared to Rs 43 crores ($6.73 million) from each international match that India plays,” Sethi added.
Commenting on the successful bid, Uday Shankar, chairman of Star India, told the media: “India, cricket and IPL have changed dramatically since (the first IPL in) 2008, and this bid is a reflection of that. We believe the IPL is a very powerful property, and we believe there is lot more value that can be created for fans of cricket on digital and TV.”
