BCCI e-auction of cricket media rights: A brief explainer
The sale of Board of Control for Cricket in India’s (BCCI) broadcast and digital rights of both domestic and international cricket will be from the period of 2018 till 2023cricket Updated: Apr 02, 2018 19:34 IST
In September 2017, the Board of Control for Cricket in India (BCCI) bagged INR 16,347.5 crore (USD 2.55 billion) for its IPL television and digital rights from Star India, making it the biggest television deal in cricket. When one weighs the amount of money the BCCI made, it is still far behind when it comes to other major sports leagues. The Premier League in England fetched a total of GBP 13.4 billion in a four-year cycle while the NBA and MLB leagues in America television deals fetched USD 24 billion and USD 12.4 billion for a nine-year cycle.
However, what will make the BCCI auction of the media rights will be that this will be done via an e-auction process. This is the first time an e-auction will be conducted in the history of sports media rights, in itself a big feat. The sale of the broadcast and digital rights of both domestic and international cricket will be from the period of 2018 till 2023. Here is an explainer of the process and what it means for fans watching Indian cricket.
Why an e-auction rather than a closed bid or any other auction process?
To ensure transparency and to erase doubts of rigging the process.
Which companies will be in the bidding for the cricket media rights?
Six companies -- Star/Hotstar, Sony Pictures Network, Facebook, Google, Jio Infocomm and Yupp TV are expected to participate in the bidding process.
Who will help sell the rights (broadcast and digital) in the process?
MJunction, a joint venture of Steel Authority of India Ltd (SAIL) and Tata Steel. The firm has conducted e-auction on the purchase of steel.
Which are the packages to be e-auctioned?
Three packages will be e-auctioned. The Global Television Rights plus Rest of the World Digital Rights Package, Indian Subcontinent Digital Rights Package and Global Consolidated Rights Package.
What are the minimum incremental bids?
For TV rights, the minimum a bidder can make per match is Rs 20 crore, Rs 5 crore for digital rights and Rs 25 crore for global rights.
What are the reserve base prices for Television and Digital rights?
For 2018: Reserve price for TV rights is Rs 35 crore per match. Reserve price for digital is Rs 8 crore per match.
For 2019-2023: Reserve price for TV rights is Rs 33 crore per match while that for digital is Rs 7 crore per match.
Why two split time periods for the auction of digital rights?
The split in pricing is due to the ICC’s new global Future Tours Program will start after the 2019 World Cup. In this FTP, events like the two-year ODI league of 13 teams and a two-year Test league, with nine teams will be included in this period.
How many games are India expected to play in the 2019-2023 FTP?
India will play a proposed of 159 matches in this period, which includes 37 Tests, 61 ODIs and 61 Twenty20 Internationals.
How many games are India expected to play at home in the 2018-2023 FTP?
A total of 102 games will be played at home in the coming cycle, which includes 22 Tests, 45 ODIs and 35 T20Is. Following the media rights, India’s one-off Test against Afghanistan will be the first in this new cycle
How many games are India expected to play against the likes of Australia, England and South Africa in this period?
India are expected to play a total of 24 out of their 37 Tests in 2019-2023 against Australia, England and South Africa. India are supposed to play a five-Test series in England in 2021 and four Tests in Australia and South Africa in 2020/21 and 2021/22 respectively.