 "ICC gives in to bidders' demands, changes auction rules for upcoming events")
International Cricket Council (ICC), on Friday, changed the bidding rules for the upcoming ICC events for broadcasters after they boycotted the recent mock auctions. A benchmark price, and opening the bids in front of bidders were among the changes that were introduced by the governing body.
Indian broadcasters will now take part in the auction for events like Men's World Cup, T20 World Cup, and Champions Trophy, according to a report by Economic Times (ET).
"The final set of information has been sent to the bidders this weekend and bidding will happen next week. This included a benchmark price and a minimum aggregator for 4-8 years. With the process coming to its conclusion, we are confident in getting a great result for the sport with this being supported by the estimated value of the rights," a source told ET.
For four-year media rights for India, the benchmark price has been set at $1.4 billion. For eight years, the price has been set at $4 billion, 2.8 times the price for four years.
The bids will also be opened in front of the bidders from now on. If the bids are above the benchmark price, the second round of the auction will only be initiated if the difference between the first and the second highest bids is less than 10 per cent, the report said.
"Earlier, there was no transparency, clarity or direction. Now at least there is some clarity and direction and a bit of transparency. We would have liked all the bids to be disclosed in front of everyone, but if the trigger for e-auction is less than 10 per cent difference, it is acceptable," a person said.
The top four bidders are finalising their technical and financial bids, ET reported. These are Disney Star, Sony Pictures Networks India, Viacom18, and Zee Entertainment Enterprises. The technical bids will be submitted on August 22. On August 26, the selected bidders will be asked to submit their financial bids.
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The objections were originally raised by all the four top bidders in early July. Three out of four bidders further stated that they would boycott the auctions if their demands are not met.
The last rights cycle (2015-23) was won by Star Sports for $2.02 billion.