How Star India bagged IPL global media rights for next five years
Mumbai Indians players hold the Indian Premier League trophy as they celebrate their victory against Rising Pune Supergiant after the IPL final at Hyderabad in May this year. Pic/AFP
Star India claimed the Indian Premier League (IPL) media rights (television and digital broadcast) for a whopping R 16,347.50 crore for the next five years at the IPL media rights auction in the city yesterday. The bid amount, worth approximately $2.5 billion dollars, is more than twice as much as the amount that World Sports Group had bid nine years ago. The previous 10-year bid for TV rights was bought by Sony at Rs 8200 crore in 2008.
The media rights include broadcast and digital (mobile and internet) for segments —India, Middle East, Africa, Europe and America. Interestingly, Sony's individual bid for broadcast (TV rights) this time was Rs 11,050 crore compared to Star's Rs 6,196 crore.
BCCI's earnings doubled
With the huge financial windfall, the BCCI stands to earn nearly double the amount in half the duration (five years) with earnings of R3270 crore from IPL media rights per year. The BCCI will approximately fetch R55 crore from an IPL match compared to R43 crore, ironically, for each one-day international match that India play.
BCCI is facing an administrative crisis and is under the scanner for not implementing the Lodha committee recommendations. Asked about the rough phase which BCCI are enduring at the moment, acting secretary Amitabh Choudhary indicated that he was not willing to term the phase as a negative one.
"The BCCI has gone through a phase which would appropriately be labelled as difficult. If a phase did confront the BCCI where the organisation was made to examine oneself, I don't necessarily think it was a phase which was negative. We're still growing," said Choudhary.
Nobody to match Star
The sum total of other bids, excluding Star consortium, was Rs 15,819.51 crore which is at least R500 crore less than Star India's consolidated bid. According to sources, Star India's digital vertical HotStar would be used for live streaming of IPL matches in India. Star CEO Uday Shankar admitted that they might not have won the bid had the amount been slightly lesser.
"Even if it was slightly less, we would not have got the rights. In every category, it was so competitive," Shankar added. In the morning, of the 24 companies that had bought the ITT (Invitation to Tender) document for various rights, only 14 turned up for the auction. Out of the 14 companies, BamTech was disqualified as they did not meet the required criteria.
Figure Trigger
Rs 55cr
Amount BCCI will earn from an IPL match as compared to the R43 crore it fetches when India play an ODI
Rs 11,050cr
The highest single bid for TV rights, by Sony for the Indian market. While this was $0.78 billion more than Star's bid, Star won by virtue of being the highest overall
bidder across categories and markets
Rs 528cr
The difference between Star's combined bid for global TV and digital rights and the sum of the highest bids in each of the individual categories
Rs 3900cr
Facebook's bid for digital rights in the Indian market, the highest in the field
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