BCCI could earn up to $ 5 billion on IPL broadcast rights alone
BCCI is poised for a windfall of gigantic proportions, as IPL (television and digital) broadcast rights could bring the Council up to $ 5 billion for the next five-year cycle (2023-2027) while interest foreground is observed. in the bidding process for the two new teams.
The current five-year rights (television and digital) for IPL from 2018 to 2022 belong to Star India but, according to those in a position to make decisions, the valuation, which is currently Rs 16,347.50 crore (2 , $ 55 billion), could more than double to reach 5 billion USD (around Rs 36,000 crore at the current exchange rate).
“There is a well-known US company that sent out BCCI pollsters some time ago, expressing serious interest in bidding for IPL media rights. With 10 teams playing IPL from 2022, matches will go up to 74. and in any case, the valuation of the property increases, ”a senior BCCI official told PTI on condition of anonymity.
“But with two new teams set to go for something between Rs 7,000 crore to 10,000 crore, broadcast rights are sure to skyrocket. So expect IPL broadcast rights to exceed 4 billion. of dollars and can go up to USD 5 billion, “said the knowledgeable official.
Any foreign company wishing to buy IPL properties must have an Indian wing.
Last time around, there were only two major players in the TV rights and digital media market, with Star India largely outbidding Sony, which held the rights from 2008 to 2017.
Star had made an offer of almost Rs 5,300 crore more while Sony’s final composite offer was Rs 11,050 crore (USD 1.47 billion). Star India is a wholly owned subsidiary of The Walt Disney Company India.
BCCI normally classifies various broadcast offerings like TV, digital (streaming), radio and social media, but last time it allowed a separate offer as well as a composite offer.
Any company can also bid separately, but if the evaluation of the singular composite offer is greater than the cumulative amount of the singular offers, then this is taken into account by the Council.
BCCI is expected to launch the tender in Dubai on October 25, the same day that two new IPL teams will also be announced.
The BCCI is awaiting a solid auction from Star India and Sony, who would like to reclaim the IPL property in its bouquet.
The Glazer family, owners of Manchester United, collect the application document from the IPL team. The senior official also confirmed that the Glazer family, owners of Manchester United, had picked up the application document, with October 20 being the last day.
“Yes, the Glazers got the candidacy file. Obviously, IPL is now a globally recognized sports property and international companies will be interested.
“Would they make an offer or if they would later be interested in buying shares in an existing IPL team, we don’t know,” the senior official said.
The IPL offer document costs Rs 10 lakh and a lot of trading houses and big companies buy the offer document just to analyze the business prospects.
There has been a tendency for private companies, which are overflowing with cash, to show interest but it remains to be seen how many have filed the bids, which will be open on October 25, the day after the T20 World Cup match between l ‘India and Pakistan.
BCCI expects something between Rs 7,000 crore and 10,000 crore from the IPL team.
The official then gave the example of Red Bird Capitals, a US-based investment firm that is one of the investors in English Premier League giant (EPL) Liverpool. They currently own a 15 percent stake in the IPL Rajasthan Royals franchise.
As PTI reported some time ago, some of the main players who could bid for new IPL teams are Adani Group, Kotak, Pharmaceutical majors Aurobindo and Torrent Group, and RP-Sanjiv Goenka Group.
The BCCI allows consortia and companies with an annual turnover of Rs 3000 crore to bid for teams.
The base price for new IPL teams is set at 2000 crore INR.
Will a former Indian cricketer become part owner of the IPL team for the first time? A highly regarded former Indian cricketer and big star of India’s World Cup victories could join one of the consortia as a minority stakeholder with his investment.
“Yes, a very well-known cricketer has expressed a keen interest in being part of the new franchises. Yes, he wants to invest his own money and be part of the consortium.
“He wants to be a minority shareholder but with his experience he would like to make the cricket decisions. It remains to be seen whether any of the new business houses will accept such a proposal,” the source said.
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