BCCI broadcast rights go sky-high with Star

Nimbus Communications,the broadcast company that owned the rights earlier had bid around Rs 2,700 crore in 2006 for four years and in 2009,renegotiated for another four-year period at a discounted price of Rs 2,000 crore.

The Indian cricket board scrapped its contract with Nimbus in December after it defaulted on payments and invited fresh bids. Even as market pundits forecast a lukewarm response from broadcasters given a tough economic environment,an overkill of cricket and also the dip in form of the Indian cricket team over the past year,the BCCI had received five bids.

Each of these bids was higher than the floor price of Rs 31.25 crore for each Category ‘A’ match and Rs 34 crore for each Category ‘B’ match.

Of the bids,two — one from Star India and the other from Multi Screen Media Pvt Ltd (earlier known as Sony Entertainment Ltd) — were accepted. While MSM had bid Rs 3,700 crore for the games,Star won with its Rs 3,851 crore bid for 96 matches to be played over the next six years in India. The deal works out to around Rs 40 crore per match against Rs 31.25 crore paid by Nimbus. It also includes internet and mobile rights along with the television rights.

Star goes solo

This is the first time,Star India bid for BCCI rights independently. In the past,the broadcaster’s sports channel Star Sports that operates under a 50:50 joint venture with sports broadcaster ESPN had bid for the rights together. The joint venture,for instance,owns the rights to ICC matches. Star India CEO Uday Shankar,however,tried to play down the development.

He said that the two partners had decided jointly that “Star India would bid for the rights and if Star were to win the rights,it would be exploited in collaboration with ESPN Star Sports”.

“BCCI is a great property and we are overjoyed to have an opportunity to develop it further,” he said.

At a press conference organised in Chennai,BCCI President N Srinivasan said: “The BCCI is very happy with the deal. Now the media rights have been fully evaluated and fully priced with Star coming out with a such a deal.”