Updated: April 6, 2018 8:29:12 am
STAR INDIA became the first-and-last stop for all cricket in India as the broadcasting giants held on to the global consolidated rights to Indian cricket for the period between 2018-2023 with a bid of Rs 6,138 crore. Star had already brought the glitzy IPL under their burgeoning umbrella last September when they won the broadcast and digital rights for the T20 extravaganza with a bid of Rs. 16,347.5 crore.
Their successful bid on Thursday—after a three-day bidding battle — also means they’ll continue to broadcast the entire gamut of domestic cricket in the country, making them virtually the “everything store” for Indian cricket. In addition, Star already own the rights for all ICC tournaments till 2023.
The new five-year rights deal also means that the BCCI are set to earn a total of Rs 2,2485.5 crore over the next five years purely from broadcast and digital rights. And this only further fortifies their stand as the richest cricket board in the world. For the record, the England and Wales Cricket Board (ECB) earns Rs 1,869 crore from its broadcasting rights in addition to what they get from foreign broadcasters who own overseas rights to cricket in England.
Star’s whopping IPL bid had meant that they’d be paying Rs 54.4 crore per match in the T20 league. At that point, that amount was significantly higher than what the BCCI were earning from each international match on home soil—which according to the previous deal was Rs 43.2 crore. As per the new contract, Star will pay Rs 60.18 crore on average for each of the 102 international matches that India are slated to play on home soil over the next five years. Technically though, the per-match price for the IPL will still be higher for the first three years of the next rights-cycle, that is till 2021. According to new deal, the base price for each match will increase annually.
BCCI CEO Rahul Johri explained that the board will be earning Rs 46 crore per match for the first year, Rs 47 crore per match for the second year, Rs 46.50 crore per match for the third year, Rs 77.40 crore for the fourth year and Rs 78.90 crore for the fifth year.
“The other relevant numbers are that we have gone up from 43.2 crore per match to this figure, which is climbing up by Rs 17 crore and if you compare with the IPL broadcast rights and the current, then the IPL figure per match, for 300 matches was Rs 54.4 crore and this figure is ahead of that. It was a learning experience,” acting secretary Amitabh Choudhary added. Star India CEO Uday Shankar was his usual prudent self when it came to explaining the magnitude of the amount his company had agreed to spend on retaining the rights for Indian cricket.
“Like every great thing, the BCCI rights come a little expensive, but then good things have a price. Star and BCCI can transform the sporting experience of cricket fans altogether,” he said.
Asked about the experience of participating and winning in an e-auction for the first time, Shankar added, “The experience was like a movie that was great, but it wasn’t just coming to an end. It went on and on. I’m sure everybody including the BCCI who, purely from their business point of view, it was great the longer it ran because every minute was bringing more cash. But I am sure by the end of it they also must be exhausted because for it to go on for three days is quite something. I don’t think there is another tender of any sport rights we are aware of that has gone on for so long. You had to be technically savvy. It took time to understand but it was a very scientific and transparent process.”
Over the last six months as they first upped the ante for the IPL rights by generating a 182 per cent hike to its previous value before retaining rights for all other cricket on home soil with a 59 per cent increase to the amount they’d spent over the last six years from 2012, Star have indeed transformed the status of Indian cricket in terms of global sport. The BCCI’s overall broadcasting earnings puts them ahead of the English Premier League (EPL), leaving only the NFL in the USA as the most opulent sports property.
59% That’s the percentage of increase in Star’s bid from the previous cycle, which was sold for $750 million for the six-year period between 2012-18.
60Cr is the average cost per match for the Indian cricket rights sold on Thursday, which is higher than the average cost per IPL game for the 2018-22 period, which is pegged at Rs 54.5 crore.
$19b Star has also paid a whopping $1.9 billion for the broadcast rights for all ICC events between 2015-2023.
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