The Board of Control for Cricket in India (BCCI) has announced the winners of the Indian Premier League’s media rights for the period 2023-2027.
BCCI has sold IPL media rights for a whopping Rs 48,390 crore for five years. The figure of Rs 48,390 crore is nearly 3 times the price (Rs 16,347.50 crore) at which the IPL media rights were sold for the previous cycle (2018-22) in 2017.
For the first time, IPL media rights have been spread across broadcasters, breaking the monopoly of one company.
The Walt Disney Company India-owned Disney Star retained their Indian sub-continent TV rights (Package A) for Rs 23,575 crore (Rs 57.5 crore/game), while the digital rights have been bagged by Viacom18 for Rs 23,758 crore for 410 matches. Package B, India digital rights deal was acquired for Rs 20,500 crore by the Reliance-backed Viacom18, which also won the non-exclusive Package C, paying another Rs 2991 crore.
This is the first time in India that digital rights have fetched more money than television rights.
Viacom18 and Times Internet together won Package D for Rs 1,058 crore. While Viacom18 has Australia, New Zealand, Singapore, the Caribbean, South Africa, Sub-Saharan Africa, UK, Ireland and Continental Europe rights; Times Internet got Middle East and North Africa (MENA) as well as the United States region in their kitty.
It is to be noted that in this media rights cycle, the bidding has been for 410 matches as opposed to 370 matches. This means that while currently there are 74 matches, there is a possibility that within this cycle (2023-27), BCCI may increase the number of games from 74 to 84 and then finally to 94. Sources state that the bidding has been done on a pro-rata basis on when/if the BCCI decided to increase the number of matches in a tourney.
Package A, which consisted of television rights, had a base price of Rs 49 crore per game. The price increased to Rs 57.5 crore per game by the end of the bidding war, clocking a 17.3% rise. From 2023, Star India will pay Rs 4,255 crore for 74 74-match tourney to the BCCI every year. The amount is subject to change in case the number of matches increases. The Walt Disney-Star India will then have to shell out Rs 4,830 in the case of 84 matches and finally Rs 5,405 crores for 94 matches. As per industry estimates, Walt Disney-Star India claims to have clocked anywhere between Rs 4,900-6,500 crores as revenue from the last IPL.
As for Package B, which encapsulated digital rights for the Indian subcontinent region, Viacom18 has won the rights for Rs 20,500 crore for five years, this comes to about Rs 50 crore per game, marking a 51.51% rise from its base price. Breaking this down for 74 matches Viacom18 will pay Rs 3,700 for 74 matches to the BCCI. This might increase to Rs 4,200 crore for 84 matches and lastly, Rs 4,700 crore to BCCI if the number of matches touches 94.
Just to clarify, Viacom18 paid Rs 23,758 crore for both Package B and Package C (non-exclusive 18 match rights). This means that BCCI will get an additional Rs 33.24 crore per game for Package C– which was a newly introduced non-exclusive 18-match package. This brings Viacom18’s total to Rs 4,298.32 crore for 74 matches. Interestingly, the total number of games in Package C is 98. This means that if/when BCCI increases the overall matches from 74 to 84, Package C’s number will also increase from 18-20. Similarly, for 94 matches, Package C will encapsulate 22 matches. With this in mind, Viacom18 will pay a total sum of Rs 4,864 crore for 84 matches, and Rs 5,364.8 crore for 94 matches.
At Rs 48,390, IPL is now the second most valued sporting event, right after the United States National Football League (NFL) and has recorded a threefold increase from what The Walt Disney-Star had paid at Rs 16,347 crore in 2017.
BCCI President, Sourav Ganguly said, “The game has never been just about money, it is about talent. The IPL e-auction just showed how strong the game is in our country. The numbers should be the biggest motivation for all the young players to take their ability and Team India to the highest level.”
“IPL’s growth story and its phenomenal rise in the sporting world is a result of people’s immense faith and belief in the BCCI leadership and its workforce to keep on delivering under all adversities. I am sure with the constant support of everyone in the eco-system we will be able to take brand IPL to new heights on the global sports stage,” he said.
BCCI Honorary Secretary, Jay Shah said, “It gives me immense joy and makes me proud that IPL has grown to what it is today. The e-auction today has catapulted IPL into the big league in terms of per-match media rights value. We ensured that the process was transparent and fair to all stakeholders. I congratulate all the winners and thank the bidders for participating in the e-auction process. I also express my gratitude to the market forces for believing in the brand and showing their faith and confidence in BCCI to take IPL to newer heights. I am sure, together, we will keep adding value to brand IPL and make it the biggest sporting league in the world in terms of revenue, participation and performance.”
“The whole idea is to balance cricket and commercial interests as BCCI is committed to developing sports in the country through cricket. The money we generate through media rights will ultimately benefit grassroots cricket in India and that is what ultimately matters. The BCCI is also committed to launching the Women’s IPL in 2023 apart from creating maximum opportunities for the growth of women’s cricket in the country. In BCCI’s attempt to ensure that sports should travel beyond cricket, it is also setting up indoor sports academies in the Northeast and stadiums in select locations to promote sports in every nook and corner of the country. The BCCI will also build a resource pool to provide pension and financial aid to former players and widows of cricketers,” he added.
Chairman, IPL Governing Council, Brijesh Patel said, “It gives me immense pleasure to welcome the winners to the IPL family and I also thank all the bidders for showing their interest to be part of the growth story that this League has been writing every year. This faith of India Inc. in Brand IPL also testifies that they see value in investing in the property which has only seen growth in all directions.”
“The growth achieved by the IPL in a span of 15 years has been substantial. We are now among the top two sporting leagues of the world in terms of per match media rights valuation. This speaks volumes about BCCI’s organisational capabilities and the quality of cricket on display in IPL along with the support of our biggest stakeholder – the cricket fans,” he added.
BCCI treasurer, Arun Singh Dhumal said, “What we have achieved with IPL media rights will go a long way in promoting a purely “Made in India” sports property on the global stage. This is our first step towards what we at the BCCI have aimed to achieve in making India a sporting giant and expanding IPL’s base globally and making it the biggest ‘sporting’ league in the world. IPL’s craze and popularity have never ceased to surprise anyone with each playing season. This is a landmark achievement and it will help the League grow not only in stature but also in credibility on the global sporting stage. It is not every day that your partners and stakeholders entrust so much faith and trust in a brand like the IPL and the leadership qualities of BCCI.”