The BCCI has very high expectations from the forthcoming media rights cycle of Indian Premier League. According to one of the senior BCCI official, IPL media rights for the next cycle can fetch almost 40,000 crore for the Indian board. Speaking to PTI he also revealed that one of the US based entity has shown huge interest in the rights.
The current five-year rights (TV and digital) for IPL from 2018 to 2022 are with Star India. The network is shelling out 16,347.50 crore (USD 2.55 billion) for the current portfolio. But according to one of the BCCI official the next 5 years cycle can fetch the board USD 5 billion (round about a magical figure of 37,000 Cr), almost 125% of the current values.
“There is a well-known US based company which did send BCCI feelers some time back, expressing their serious interest in bidding for IPL media rights. With 10 teams playing IPL from 2022, the matches will go up to 74 and in any case, the valuation of the property increases,” a senior BCCI official told PTI on conditions of anonymity.
“But with two new teams about to fetch anything between Rs 7000 crore to 10,000 crore, the broadcast rights are certainly going to shoot through the roof. So expect the IPL broadcast rights to go for anything above USD 4 billion and may be up to USD 5 billion,” the official in the know of things said.
Any foreign company showing interest in buying IPL properties needs to have an Indian wing. The last time around, there were only two major players in TV and digital media rights market with Star India handsomely outbid Sony, who held the rights from 2008-2017.
Star had bid nearly Rs 5300 crore more as Sony’s final composite bid was Rs 11,050 crore (USD 1.47 billion). Star India is a wholly owned subsidiary of The Walt Disney Company India.
The BCCI normally categorises various broadcast deals like TV, digital (streaming), radio, and social media but last time, it allowed separate as well as one composite bid.
Any company can also bid separately but if the valuation of the singular composite bid is more than the cumulative amount of singular bids, then that is considered by the Board.
The BCCI is set to release the Tender invitation in Dubai on October 25, the same day when two new IPL teams will also be announced.The BCCI is expecting robust bidding from both Star India and also Sony, which would like to get the IPL property back in its bouquet.