What is the IPL Media Rights Auction?
The Indian Premier League (IPL) media rights auction is scheduled for the five-year cycle from 2023 to 2027. It is likely to make BCCI richer by at least Rs. 35,260 crores. The base price increase is the result of BCCI’s announcement that the number of games in the rights cycle will increase from 370 to 410.
When is the IPL Media Rights Auction?
The e-auction, a first for IPL, was set to begin on Sunday, June 12 at 11 a.m. IST. It is not yet known when the winning bidders will be announced. The announcement is subject to the duration of the auction and the technical verification of the winning bidder(s).
Where will the IPL media rights auction take place?
Since it is an e-auction, the bidders can potentially be spread all over the world. The BCCI and IPL authorities will follow the procedures from their headquarters in Mumbai.
Who are the bidders for the IPL media rights (2023-2027)?
While nearly a dozen bidders bought the bidding documents, the media rights auction will most likely be a four-way race between categories.
IPL TV rights
Disney, which has now acquired current rights holder Star, will face stiff competition from former rights holder Sony Group Corp., the newly formed Reliance Viacom Sports 18 and Zee TV for the TV rights.
IPL OTT rights
Disney+ Hotstar, Disney’s OTT arm, is facing the heat from the same players, and Times Internet Ltd. will likely be in combat as well.
With Sony and Zee working on a merger, the former may go all out to acquire TV rights, while Zee will break the bank for digital rights.
Supersports, the South African broadcaster, is likely to bid for African territory rights.
How is the auction of IPL media rights conducted?
The media rights are divided into four categories:
– Domestic broadcasting rights: Base price of Rs. 49 crore per game.
† International broadcasting rights: Base price of Rs. 3 crore per game.
– Digital rights: A newly designed category considering the growing consumption on OTT platforms, the base price is fixed at Rs. 33 crore per game. It is divided into five areas around the world.
– Non-exclusive rights: Award in India for just 18 premium games on digital platforms, with a base price of Rs. 16 crore per game.
- The winner of Package A (domestic broadcast) can challenge the winner of Package B (international broadcast) with an additional bid of Rs. 1 crore.
- Likewise, the winner of package C (non-exclusive rights) can be challenged by the winner of package A or B with an additional bid of Rs. 50 million.
- For package D (digital rights), the additional offer is set at Rs. 20 lakh for each area.
READ: IPL Media Rights Auction: What to Expect?
Why is the auction of IPL media rights so important?
The auction will kick off a series of major cricket broadcasting rights auctions over the next two months. Shortly after the IPL media rights auction, the International Cricket Council (ICC) will launch tenders for the next eight-year cycle and the BCCI is likely to bid for international cricket in India over the next four years.
The IPL award will set a benchmark for major global cricket properties.
It will be interesting to see the expected cumulative fees that the broadcasters are willing to pay for acquiring IPL rights. With the BCCI clarifying that the number of matches will rise to 410 in the next five years (74 in 2023 and 2024, 84 in 2025 and 2026 and 94 in 2027), the broadcasters aim to associate themselves with the largest cricket league in the world.
READ: ICC CEO: Focus on developing the game in different formats, growing women’s cricket
The rating also gives an idea of whether IPL can be compared to global sports giants, including the European football leagues, Major League Baseball (MLB), National Basketball Association (NBA) competition, etc. The UEFA Champions League earned an estimated Rs. 19,700 crore for the 2020-21 season.
NBA earns an estimated Rs. 18,700 crore per season right now for US broadcast rights, but it is likely to seek at least double the amount for next season. MLB, meanwhile, will earn about Rs. 31,200 crore over a seven-year cycle from 2021 to 2027.
Where can you watch the auction of IPL media rights?
The auction of IPL media rights will not be broadcast. The final announcement of the bid winners is expected to be released on Tuesday, June 14.