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Star Group gets Indian Cricket Broadcasting Rights
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by cricfan | April 3, 2012 at 03:38 am
408 views | 1 Recommendation | 14 comments
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Rupert Murdoch-owned Star TV pulled off a surprise by bagging the broadcast rights of Indian cricket. It beat a close bid from Multi Screen Media — or Sony television — to be eligible to broadcast all of India’s domestic international matches for the next six years.
Star’s bid was worth Rs3,851 crore — over Rs150 crore more than Sony’s. The deal will allow Star to show 96 international matches to be played in India till March 31, 2018. It will also show BCCI’s all domestic competitions (Ranji Trophy, Duleep Trophy, Challenger Trophy, Irani Trophy) barring the IPL. The IPL rights are with Sony. Star has also bagged the mobile and internet rights, which the BCCI has been struggling to sell.
The sale of media rights was necessitated because of BCCI’s abrupt cancellation of its deal with Nimbus last December.
Nimbus has been the board’s broadcast partner since April 2006. The BCCI has also scrapped the production rights contract with Nimbus, which has been producing its matches hitherto.
The BCCI received only two bids although three others parties had also bought the tender document. On average, the Star bid Rs40 crore per international match — about Rs8 crore more than what Nimbus was paying the BCCI. There were two groups in the bidding process, Group A (for the first two years with a base price of Rs31.25 cr plus Rs1 cr) and Group B (for the next four years with a base price of Rs34 cr plus Rs1 cr).
Star produced Rs33 crore for the first two years and Rs43 crore for the next four years. The Sony bid was for Rs38 crore for the all the matches. In the final calculation, Star bid was over Rs150 crore more than Sony’s.
The process of selection was done at the BCCI’s marketing committee meeting in Chennai on Monday. There were a battery of lawyers and chartered accountants at the meeting from all sides. The BCCI called all its members for the meeting. Among those present were Arun Jaitley and Rajiv Shukla. Jagmohan Dalmiya was a special invitee. The two parties were asked to submit the financial bids in sealed covers in the morning after their papers were given clearance by the board’s legal advisors.
“The BCCI is very happy with the deal. Now the media rights have been fully evaluated and fully priced with Star coming out with a such a deal,” BCCI President N Srinivasan told reporters during the board’s announcement on Monday afternoon. “Following a transparent process of verifying the eligibility of each bidder, the winner has been chosen,” Srinivasan said.
Star Group’s India CEO Uday Shankar said the company would telecast the matches in collaboration with partners ESPN-Star (ESS). “We have already got channels. But the option of launching a channel, if number of matches demand that, is always open,” he said.
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