 "Sunrisers Hyderabad players celebrate with the winning trophy of IPL 2016 after beating Royal Challengers Bangalore in the final match at Chinnaswamy Stadium in Bengaluru on Sunday. PTI Photo by Shailendra Bhojak")
One of the most anticipated media rights battles has started with the Board of Control for Cricket in India (BCCI) announcing an open bid for the rights to the cash rich annual twenty-twenty tournament, the Vivo Indian Premier league (IPL). Broadcasters, OTT players, mobile video platforms and marketing agencies have one month to buy the tender and submit their respective bids.
The rights have been divided into three categories – Indian subcontinent television rights (2018-2027), Indian subcontinent digital rights (telecast to have five minute delay after TV transmission; 2018-2022) and Rest of the World (ROW) media rights (available in entirety or in territory grouping provided by the BCCI; 2018-2028). Bidders may bid for any combination of these. In case of ROW, the BCCI has segregated the territories into six groups (A to through F).
Only television broadcasters are eligible to bid for the 10 year broadcast rights for the Indian subcontinent. Since the acquisition of Zee’s Ten Sports by Sony Pictures Network India (SPN), the Indian sports broadcast landscape has become a clear duopoly and Star India and SPN are expected to fight tooth and nail for the acquisition of these rights.
Currently, the IPL's media rights are held by SPN and the 2017 edition of the tournament will be the last in the current contract. The company is paying the BCCI $1.63 billion for the telecast rights to the tournament over a period of nine years. The digital media rights to the IPL lie with Star India’s subsidiary Novi Digital, the company that operates the network’s digital properties including video streaming platform Hotstar. Novi Digital won the rights in 2015 for a year three period at a fee of Rs 302 crore.
Under the current contract with the BCCI, SPN had the first right to make an offer to the cricket body, but the BCCI has decided to go for an open tender in an effort to implement transparency in the BCCI's business deals as recommended by the Supreme Court in the aftermath of the 2013 betting and match fixing scandal the tournament was embroiled in.
For the digital rights in the Indian subcontinent, TV broadcasters, internet operators and mobile operators are welcome to bid. This opens the doors for the recently launched Reliance Jio to make a play for sports telecast in India. In case of the ROW media rights bid, marketing agencies, along with the other players mentioned, are allowed to bid.
The eligibility mandate for the bid allows consortium bids and forbids entities involved in litigation with the BCCI. This rules out Nimbus owned Neo Sports, which is awaited the third phase of arbitration with the BCCI regarding the media rights to BCCI matches which were awarded to Star India in 2012.
The applicants are to submit two envelops as part of the application – envelop A with the eligibility and envelop B with the financial bid and signed media rights agreement. The second envelop will be opened only if the first is found valid (that is the bidder meets the eligibility criteria) and envelops B of those not found eligible, will be returned or destroyed.
The BCCI is not obligated to assign the rights to the highest bidder and may change the process at any given time. While the bidders are to submit a signed media rights agreement with the application, the BCCI is bound to the contract only upon countersignature of the document.
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TIME TABLE
19th September 2016 – ITT available for purchase
4th October 2016 – Last Day for seeking Clarifications
18th October 2016 – Last date for purchase of ITT
25th October 2016 – Bid Submission at 09:30 am
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