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DD to share booty only if it rakes in over Rs 200 crore

05-October-2004
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DD to share booty only if it rakes in over Rs 200 crore

Public broadcaster Prasar Bharati will share its revenues with the Board of Control for Cricket in India (BCCI) only if it earns over Rs 200 crore through advertisements in the first two series and a friendly one-day international.

In the unique revenue-share arrangement, which was finalised today, Prasar Bharati has agreed to share 50% of the ad income earned over and above Rs 200 crore. Prasar Bharati CEO K S Sarma told FE, “Anything over and above Rs 200 crore of ad revenues will be shared 50:50 between Prasar Bharati and BCCI.”

Prasar Bharati will pay Rs 100 crore as rights fee to BCCI for six Test matches (four against Australia and two against South Africa) and the friendly ODI against Pakistan. While Mr Sarma refused to guess how much income Prasar Bharati will earn from ads, industry estimates put the figure at Rs 100 crore.

Prasar Bharati would, in such a scenario, get to retain the entire ad earnings, and just about break-even.

For the two series, Prasar Bharati has got the radio rights too. “We got the broadcasting rights for AIR for free. And we get to keep all the ad revenue earned from it,” Mr Sarma said.

He said that Prasar Bharati was assisting BCCI sell the radio rights overseas, for which it could get 15% commission on the sale proceeds. Mr Sarma is already in talks with Radio Australia.

According to Madison India general manager Basab Dutta, it is realistic to expect Rs 100-crore worth of ad revenues from six Tests and one ODI, assuming there are 140 spots a day or roughly 4,000-4,200 seconds. Six Test matches and an ODI translate into 31 days of cricket.

While spot ad rate for the Australia and South Africa series is pegged at Rs 40,000 per 10 seconds on Prasar Bharati’s national channel DD1, that on DD Sports is Rs 50,000 per 10 seconds, said Mona Jain, vice-president, media, Cheil Communica-tions (which is the integrated communications subsidiary of Samsung).

The spot buy rate for the ODI against Pakistan is estimated at Rs 75,000 per 10 seconds on DD1 and Rs 1 lakh per 10 seconds on DD Sports. Industry sources said, the three main sponsors for the two series are HLL, Indian Oil and Hutch.

The presenting and associate sponsors will fork out Rs 6 crore and Rs 4 crore, respectively. For the India-Pakistan ODI, the rates for presenting and associate sponsors are Rs 50 lakh and Rs 35 lakh, respectively.

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