Just not cricket: Espn-Star Sports

Exactly a month from now, the first BCCI match will be played out between India and Australia. By now, the broadcaster should have renegotia...

Exactly a month from now, the first BCCI match will be played out between India and Australia. By now, the broadcaster should have renegotiated the rate card for the nth time with media planners. But with all the attention on the game being played in the courts, it’s going to be a nail-biting finish.

Second-highest bidder ESPN-Star Sports has dragged the Board of Control for Cricket in India (BCCI) to the courts. A writ petition filed today in the Bombay High Court questions the decision to award the cricket rights to highest bidder Zee Telefilms ($308 million) when it did not have the requisite credentials. BCCI has also been accused of distorting the bidding process.

While managing director ESPN-Star Sports R C Venkatesh refused to divulge details, he did confirm that the channel has initiated legal action against BCCI.

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There’s more at stake than 108 days of cricketing action (this figure is likely to go up to 160 days). The very future of Zee and ESPN-Start Sports hangs in the balance.

Zee needs the matches to launch its Sports channel on October 2 and lift its overall position from No. 3 to the second slot. The first two are Star and Sony.

For all ESPN-Star Sports’ wealth of TV rights — from soccer, tennis, and even cricket rights of England, Australia, South Africa, New Zealand, Zimbabwe and Bangladesh — all this contributes only 10 per cent of revenues compared to the 90 per cent that comes from cricket played in India. Besides, with the exception of Bangladesh, the Indian cricket team is not going out for matches in the next two years. But then, will the matches bring in the money for the broadcaster? Zee has bid almost double of what it earned last year.

Per day acquisition cost for cricket alone as per the bid provided by ZEE is being pegged around Rs 12 crore. Advertising revenues for the next four years are estimated at Rs 500 crore and is unlikely to rise. Subscription will probably fetch in Rs 100 crore. Zee is likely to make money from subscription (Rs 100 crore), DTH, oversees distribution and syndication rights. “We are available in 120 countries abroad and there is huge interest in cricket,” said Zee vice president Asish Kaul.