So will Star recover the Rs 60.18cr it needs to pay for each India match?

06 Apr,2018

By A Correspondent

 

So will Star recover the Rs 60.18cr it needs to pay for each India match? That’s a question that everyone seemed to be asking at the culmination of the e-auction where bidding to own India cricket broadcast rights. Star India logged in the highest bid of Rs 6138 crore for the global consolidated rights package was going ballistic.In the bag for Star are the following:  Global Television Rights plus Rest of the World Digital Rights Package, Indian Subcontinent Digital Rights Package and hence the Global Consolidated Rights Package. This averages out to Rs 60.18 cr per international game.

 

Earlier, Star India had also secured the broadcast and digital rights for the Vivo Indian Premier League for the next five years. Given this, Star India has a monopoly over all forms of cricket for the next five years.

 

According to broadcast and media industry folks, while the amount of Rs 60.18 crore appears very high, given the huge interest for the game, Star will hope to recover the monies from not just advertising but from distribution. And while Reliance lost this battle for the direct rights, it will still play a key role in the digital distribution with Jio.

 

Said Uday Shankar, Chairman, Star India: Having both the IPL and India Domestic and International Rights puts us in a special position. I am confident that Star and BCCI can transform the sporting experience in the country.”

 

And what about the monies invested. Said Shankar in a statement: “Before the auction began, we had a specific number in mind. The prices reflect the average value of all three formats of the game. I congratulate the BCCI for putting across a scientific and a thoroughly transparent process. You knew the bids at all times, but at no stage did you know the bidder. Having a brutally transparent process is a major factor for their success.”

 

Said CK Khanna, Acting President of the BCCI: “I congratulate the Star group for securing BCCI’s Domestic and International Rights. The BCCI shares a strong bond with Star and our association will touch new levels in the years to come. The fact that it took three days to decide a winner proves the deep level of interest in Indian cricket.

 

For Star India it’s a huge win. Echoing this view, Amitabh Choudhary, Acting Honorary Secretary, BCCI, said: “We tried out the E-Auction for the first time and it was a pleasant experience. By securing the BCCI Domestic and International Rights, Star has now completed a hat-trick. I also express my gratitude to Reliance Industries Limited and Sony Pictures Networks India Private Limited who completed the E-Auction process and made it a success.”

 

Added Rahul Johri, CEO, BCCI: “The BCCI had put together a transparent process and I am pleased with the outcome. In the process, we were assisted by Deloitte Haskins & Sells LLP and Cyril Amarchand Mangaldas. The fierce bidding underlines the importance of domestic and international cricket. The supporters of Indian cricket will be treated to some high-quality action not only on the field, but also on television and digital platforms.”

 

Sony Pictures and Reliance Industries were in the final three shortlisted for the online bidding. According to reports, the Sony bid was of Rs 6118.59 crore, just Rs 19.51 crore short of the Star India bid.

 

 

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