All eyes on IPL media rights tender as BCCI completes auction of two new teams
The Board's earnings are set to skyrocket with the addition of the franchises, which are expected to fetch at least $5 billion or more
The new franchises will participate in IPL from 2022 season onwards which will comprise 10 teams and will have 74 matches, wherein each team will play 7 home and 7 away matches. The BCCI's earnings will see a huge growth due to the addition of the new franchises.
According to an experienced media professional, the IPL team auctions will set the ball rolling for the BCCI to auction the IPL media rights. “It is difficult to predict the IPL media rights value, but if we take the current five-year rights value as the base price, then it should easily cross $5 billion. The interested players for IPL rights would be Star, Sony, Reliance and Amazon. The upcoming auction will elevate the status of IPL globally as a valuable sports property,” the professional said.
A top-level official from a leading media company said that the IPL media rights tender will come any time soon, as indicated by the BCCI. He also feels that the IPL media rights value will gain from the fact that two new franchises have been sold at over Rs 12,000 crore. “The auction of two new teams will boost the overall value of IPL including the media rights. The IPL media rights value will only go up further than what was anticipated earlier,” the official said.
“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 had stated.
For IPL 2022, Star might have to cough up an additional Rs 715.2 crore for the additional 14 matches, at Rs 51.08 crore per match. With a Rs 3065.15 crore payout for 60 games, Star is paying an estimated Rs 51.08 crore per game for the IPL.
The auction of two new teams has set the momentum for the BCCI to rake in big monies from the IPL media rights auction, which is expected to see participation from Star India, Sony Pictures Networks India (SPNI), Reliance Jio-Viacom18, and Amazon.
As reported earlier, the upside in media rights value will be determined by the competitive intensity due to the entry of new players (Viacom18 and Amazon), expansion of the tournament through two new teams resulting in more number of matches, and the fact that it is a profitable property. The value of the next five-year cycle of IPL media rights is projected to be anywhere in the region from Rs 24,000 crore to Rs 40,000 crore depending on the bidding frenzy.
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