Sony Pictures Networks (SPN) today said advertisement revenue will be impacted if Lodha panel's recommendation on curtailing the number of commercial breaks during cricket matches is implemented.
The company, which operates the sports channels Sony Six and Sony ESPN, would take into account such decrease in the valuation of these cricket properties before bidding for their telecast rights in future, it added.
"There is a direct co-relation of a valuation of a property to the ad revenue that you can make on that property," SPN Chief Executive Officer N P Singh told reporters here.
"Dependence of all broadcasters on advertising in any property is very high. Therefore reduction in inventory in cricket or any other sport in India will lead to a proportionate reduction in the valuation and that will be considered when we next time bid for any sports property.
"Any reduction in advertising inventory in cricket will have an adverse effect on the economics and the development of sport in India," he added.
According to the BCCI's balance sheet, a large chunk of its operative revenue of about Rs 2,000 crore comes from the broadcasting rights and advertisements.
But if Justice Lodha panel's recommendation to air advertisements only during lunch, tea or drinks break is implemented, the operative revenue is expected to come down to Rs 400 crore.
