What is the IPL media rights auction?
The Indian Premier League’s (IPL) media rights auction is slotted for the five-year cycle from 2023 to 2027. It is likely to make BCCI richer by at least Rs. 35,260 crore. The increase in the base price is due to the BCCI notification that the number of games in the rights cycle will rise from 370 to 410.
When is the IPL media rights auction?
The e-auction, a first for IPL, was supposed to begin at 11 am IST on Sunday, 12 June. It is uncertain when the winning bidders will be announced. The announcement will depend on the duration of the auction and the technical verification of the winning bidder/s.
Where is the IPL media rights auction taking place?
Since it is an e-auction, the bidders can be potentially spread across the globe. The BCCI and IPL authorities will monitor the proceedings from their headquarters in Mumbai.
Who are the bidders for the IPL media rights (2023-2027)?
While almost a dozen bidders bought the bid documents, the media rights auction will in all likelihood be a four-way race across categories.
IPL TV rights
Disney, which has now acquired the current rights-holder Star, will face stiff competition from former rights holder Sony Group Corp., newly-formed Reliance Viacom Sports 18 and Zee TV for the TV rights.
IPL OTT rights
Disney+ Hotstar, the OTT arm of Disney, will face the heat from the same players, with Times Internet Ltd. also likely to be in the fray.
With Sony and Zee working on a merger, the former may go all out for acquiring TV rights while Zee will break the bank for digital rights.
Supersports, the South African broadcaster, is likely to bid for African territory rights.
How will the IPL media rights auction be conducted?
The media rights have been divided into four categories:
– Domestic broadcast rights: Base price of Rs. 49 crore per game.
– International broadcast rights: Base price of Rs. 3 crore per game.
– Digital rights: A newly-devised category considering the growing consumption on OTT platforms, the base price is set at Rs. 33 crore per game. It is divided into five territories across the globe.
– Non-exclusive rights: To be awarded in India for only 18 premium games on digital platforms, with a base price of Rs. 16 crore per game.
- The winner of Package A (domestic broadcast) can challenge the winner of Package B (international broadcast) with an incremental bid of Rs. 1 crore.
- Similarly, the winner of Package C (non-exclusive rights) can be challenged by the winner of Package A or B with an incremental bid of Rs. 50 lakh.
- For Package D (digital rights), the incremental bid has been set at Rs. 20 lakh for each territory.
Why is the IPL media rights auction so important?
The auction will kick-start a spree of major cricket broadcast rights auctions over the next two months. Shortly after the IPL media rights auction, the International Cricket Council (ICC) is set to float tenders for its next eight-year cycle and the BCCI is likely to seek bids for international cricket in India for the next four years.
The IPL price will set a benchmark for major global cricket properties.
It will be interesting to see the projected cumulative fees that the broadcasters are willing to shell out for acquiring IPL rights. With the BCCI clarifying that the number of games will rise to 410 over the next five years (74 in 2023 and 2024, 84 in 2025 and 2026 and 94 in 2027), the broadcasters will be aiming to associate with the biggest cricket league in the world.
The valuation will also give a glimpse into whether IPL can be compared to global sporting giants, including the European football leagues, the Major League Baseball (MLB), National Basketball Association (NBA) league, etc. The UEFA Champions League earned an estimated Rs. 19,700 crore for the 2020-21 season.
NBA earns an estimated Rs. 18,700 crore per season at the moment for US broadcast rights, but it is likely to seek at least double the amount for the next season. MLB, meanwhile, will make approximately Rs. 31,200 crore over a seven-year cycle from 2021 to 2027.
Where to watch IPL media rights auction?
The IPL media rights auction will not be telecast. The final announcement of the bid winners is expected to come out on Tuesday, June 14th.