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IPL digital rights value soars to Rs. 610 bn

27 Mar 2022

 
  • E-auction tentatively to be conducted on 12 June
  • Rights tender for 2023-27 to be released next week
  • Digital rights alone to rise 500% more than last cycle’s value
As reported earlier, the media rights tender of the Indian Premier League (IPL) for the next cycle of 2023-27 will be released next week. According to reports coming in from the Board of Control for Cricket in India (BCCI), the e-auction for the mega billion-dollar tender will be conducted on 12 June. According to media reports which appeared in India over the weekend, the IPL media rights tender will have four to five packages of rights. They are:
  1. IPL Global Rights on Television – (Package A)
  2. IPL Global Digital Rights – (Package B)
  3. Rest of World Rights (Both Broadcast and Digital) – (Package C)
  4. Television Rights for the Sub-continent – (Package D)
  5. Digital Rights for the Sub-continent – (Package E)
What is interesting is that, unlike the last tender, the prospective bidders this time will not have an option for a single bid for both television and digital rights, noted Inside the Sports in its report yesterday (27) on the next IPL media rights tender. The Board has decided to segregate both the mediums this time, the report added. The tender process, as per the BCCI, will be completed in a 45-60 days’ period. For now, 12 June is the tentative date to conduct the e-auction. As reported earlier, and as The Morning Sports reported last Thursday (24), the BCCI has decided to conduct an e-auction for the IPL media rights. The BCCI, by putting the lucrative IPL media rights tender online, is setting a timely example for the entire region, minimising any possible foul play and bureaucratic influence in the proceedings. The key development, though, is that, as per an internal valuation, the BCCI feels that the IPL digital rights value this time will match IPL broadcast rights values. Inside the Sports revealed that it had learnt that the BCCI has created an internal report on the valuation for the IPL rights cycle 2023-27. As per the report prepared by KPMG, the IPL digital rights package this time will fetch almost 500-600% of the last cycle. The highest bid for the digital rights package in 2018 was by Facebook. The social media giant had bade Indian Rs. 3,900 crore for five years of rights. Airtel was the next highest bidder for the category at Indian Rs. 3,280 crore, followed by Reliance JIO. The incumbent Star Sports bade only Indian Rs. 1,443 crore for the digital rights last time. They still managed to acquire the rights on account of the highest overall number (broadcast and digital and other categories). One Indian rupee crore is presently equivalent to Sri Lankan Rs. 38.1 million. Inside the Sports also reported that the BCCI internal valuation report had pegged the digital rights value very high this time. The report suggests that they alone should fetch more than Indian Rs. 15,000-16,000 crore this time, which is a maximum of Sri Lankan Rs. 610 billion. This is 500% more than the last cycle’s values. “Technology has changed since the last bid. Digital and OTT (Over The Top) subscription is a big play now. Each and every player in the market knows that IPL rights can drive anyone’s subscription. We feel the values to be really high this time. It can go up by five to six times. We are sure, multiple parties will be interested in the package,” the above report quoted a BCCI official as saying.


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