The bidding war for media rights of the Board of Control for Cricket in India (BCCI)’s matches to be played in India is heating up, with more contenders joining the race. The rights include television, internet and mobile coverage for six years, starting July 2012.
According to BCCI officials, Multi-Screen Media (MSM), which telecasts the Indian Premier League on MAX, has bought the invitation to tender. The network also plans to a launch a new sports channel, Six, this year.
Apart from MSM, ESPN-STAR Sports (ESS), Bennett, Coleman & Co Ltd (BCCL)-led consortium and Reliance-Network18 have picked up tender forms.
An ESS spokesperson said they would not comment on these matters, while BCCL chief executive Ravi Dhariwal said it was an internal matter.
| NIMBUS-BCCI DEAL The story so far |
| * In October 2009, BCCI, Nimbus sign deal for Rs 2,000 crore |
| * Nimbus had to pay Rs 31.5 crore per match |
| * The bid price of Rs 32.25 crore was for 2012-14 (the remaining part of the cancelled contract with Nimbus Communications) and Rs 34 crore for 2015-18 |
| * Nimbus defaults in making payments to BCCI |
| * On Dec 12, 2011, BCCI cancels contract with Nimbus |
| * On February 27, 2012, the Bombay HC directs Nimbus Communications, which owns sports channels like Neo Sports and Neo Cricket, to furnish security by way of bank guarantee of Rs 305 crore in two weeks, pending hearing of its dispute with the BCCI |
Subhash Chandra's Zee group, which owns sports channels under the TEN umbrella, is believed to be interested in the rights, but is waiting for BCCI to withdraw its case against it.
The bids will have to be given on April 2 in Chennai. “The marketing committee will meet in Chennai to receive and open the bids next Monday," said a BCCI official.
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The cricket board had terminated its four-year contract with Nimbus Communications in December, after the latter defaulted on payments.
BCCI has fixed a floor price of Rs 32.25-34 crore (per Test, one-day international and Twenty20), higher than what Nimbus was paying.
Nimbus had signed a four-year deal with BCCI in October 2009, for Rs 31.5 crore a match. The bid price of Rs 32.25 crore a match was for 2012-14 (the remaining part of the cancelled contract with Nimbus Communications) and Rs 34 crore for 2015-18.
The higher bid price came as a surprise to many broadcasters as the Indian cricket team's performance in the recent tours to England and Australia and the Asia Cup had plunged. Experts feel fatigue from an overdose of cricket could make it unattractive to bid at the high price.
Sports management executives say irrespective of who secures the deal, BCCI may have to settle for less. For instance, last year, the global internet and mobile rights found no takers, though BCCI reduced the base price to Rs 2 crore a match.
Indranil Das Blah, chief operating officer of Kwan Entertainment and Marketing Solutions Pvt Ltd, said the rate was steep.
"There may be few bidders who could be interested, but it would be difficult to make the economics of the business work," he said.