IPL 2023-27 India Subcontinent TV and Digital Rights Sold for US$5.1 Billion

The combined value of the TV and digital rights for the next IPL cycle (2023-27) for the Indian subcontinent has more than doubled to INR 39,775 crore (about $5.10 billion). That figure came after Monday, the second day of the IPL rights e-auction, confirmed the highest bidders for the TV and digital rights. ESPNcricinfo has been informed that the winning bid for Package A – TV rights for the Indian subcontinent – INR 57.5 crore ($7.36 million approximately) per match, while for Package B – digital rights for the Indian subcontinent – the highest bid of INR 50 crore was attracted ($6.41 million approximately) per match.

In terms of INR, the value per match of an IPL game for the new rights cycle has nearly doubled (98% jump) from the INR 54.23 crore (about $8.47 million at the time) that Star India paid for the 2018 -22 cycle. In terms of US$, there is a 62.7% jump from $8.47 million to $13.78 million.

In terms of value per game, the combined number of INR 107.5 crore (about $13.78 million) has put the IPL among the highest ranked in all sports, next to the NFL and the English Premier League. Each NFL game is worth $35.07 million* (based on the 10-year rights agreement signed in 2022), while the value of an EPL game under the 2022-25 rights agreement is listed at $11.34 million **.

Based on 74 games per season for the next five years, the new TV rights package is worth INR 21,275 crore (about $2.72 billion), while the digital rights are worth INR 18,500 crore (about $2.37 billion). In terms of INR value, the total number is 2.43 times or 143% higher than the previous IPL rights deal, worth INR 16,347.5 crore (about $2.55 billion at the time). In US dollars, the increase is exactly double or 100%.

The biggest driver of this growth in IPL rights is the exponential rise of digital rights. The INR 18,500 crore paid by the highest bidder was in itself 13% higher than the total money Star India had paid to acquire the global consolidated rights (TV and digital) for the previous five-year cycle. The importance and meteoric rise of the digital footprint in the Indian market can be measured by the fact that in 2017 the highest bid for the digital rights was INR 3900 crore (at the time $610 million) by Facebook.

In the e-auction that started on Sunday, the rules were that the bids for Package A and B would be submitted together and the winner of Package A would be determined first. That winner also had the opportunity to enter a bidding match with the highest bidder for Package B.

At the end of the first day of the e-auction, the highest bid for the digital rights (Package B) was parked at INR 48 crore (approximately $6.15 million) per match. That number had not changed in the first half on Monday. But when the highest bid for Package A was determined, that bidder decided to compete for Package B as well. Consequently, per match value for pack B increased before being sold for INR 50 crore.

The highest bid for the TV rights was 17.3% higher than the base price of INR 49 crore ($6.3 million approximately) that the IPL had set for Package A. The corresponding number for digital rights saw a massive jump from 51 .5% higher than the base price of INR 33 crore (about $4.2 million).

The names of the winners have not yet been announced by the IPL authorities as the e-auction is still ongoing and bidders compete for the final two packages: Package C (digital rights to the subcontinent of India for a special bouquet of matches) and package D (rest of the world). Consequently, the total value of the IPL rights for the next cycle will also change.

It has been learned that the bidding on Package C started late Monday and will resume on Tuesday. Package C includes non-exclusive matches of the ‘Special Package’, including the tournament opener, weekend night matches and the four playoffs, including the final. While the opening game and play-offs are mandatory, based on the total number of games in a season, the IPL determines the number and which evening games of the double-headers.

The number of matches in this package, according to the IPL, will vary depending on the total number of matches in a season. If the IPL contains 74 matches (such as IPL 2022), the special package has 18 matches. If there are more than 74 games in a season, the special pack’s games will increase in increments of two for every additional 10 games. So if there are 84 matches in a season, the Special Package matches will increase to 20 and if the tournament has 94 matches, the Special Package will have 22 matches.

Just as the winner of Package A could enter a bidding competition with the highest bidder for Package B, the winner of Package B also has the option of entering a direct competition with the highest bidders of Package C and D each.

Additional reporting by Yash Jha

All USD values ​​are approximations where 1 USD = 78 INR
* According to a Forbes report based on the NFL rights agreement
** According to a report in the Athletic

Nagraj Gollapudi is news editor at ESPNcricinfo

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