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Reliance, Amazon among heavyweights to bid for IPL media rights

The BCCI has announced the Invitation-To-Tender (ITT) last week for the IPL media rights of the 2023-2027 broadcast cycle. Earlier, both times the rights were up for sale, they were split between media giants Disney Star and Sony Sports Network. Now for the next cycle, the ITT has been signed recently by TV18-Viacom , Disney, Sony, Zee and Amazon, among others.

Mukesh Ambani’s Reliance will also be another heavyweight bidder, and will be the strongest competitors along with billion-dollar tech giant Amazon. American corporation Apple is also expected to sign the bid soon.

The deadline to sign the ITT ends on May 30, followed by a 30-day clarification period. A live e-auction for the rights will take place mid-June, over the course of two days. For the first time in IPL’s history, television rights and streaming rights will be sold separately, which has strongly attracted the interest of Amazon for their streaming service PrimeVideo.

IPL media rights to be split across four categories

The last cycle of rights was sold at 16,347.5 crores. The BCCI has now doubled the figure to 33,000 crore, along with changes to its structure. Provided they clear the eligibility criteria, the parties party will have to place bids for separately for four categories.

A BCCI offical explained in more detail, “Everyone knows the value of IPL as product has increased in the last 5 years. We have divided rights into 4 bundles to unlock the real value for the rights. No composite bids will be allowed. For each package bidders will have to bid separately. Each package will have base price attached to it.”

Parties can follow a top-down bidding approach, with the winner of Bundle A allowed to rebid for Bundle B, the winner of Bundle A and B for Bundle C, and all three eligible to bid for Bundle D.

Bundle A – Indian Sub Continent Broadcast: The base price of this category is Rs 49 crore per game. The base price of 74 games calculated across 5 years would be Rs 18,130 crore. Only Indian broadcasters with a net worth of 1000 crores will be eligible for this category.

Bundle B – Digital rights Indian Sub-Continent: The base price of this category is Rs 33 crore per game. The base price of 74 games calculated across 5 years would be Rs 12,210 crore. An India broadcaster, an India internet operator and an Indian mobile company with a net worth of 500 crores will be eligible for this category, along with parties eligible for Bundle A.

Bundle C: Non Exclusive Package: This package comprises 18 games, with the cluster’s reserve price set at Rs 16 crore per game. The base price of 74 games calculated across 5 years would be Rs 1440 crore. An international broadcaster, an international internet operator and an internation mobile company will also be eligible for this category if they have a net worth of 500 crores, along with parties eligible for Bundle A and B.

Bundle D: Rest of the World Rights (Outside Sub-Continent): The base price of this package is 3 crores per game, the overall cluster value calculated across 5 years would be 1110 crores. An international broadcaster, an international internet operator and an internation mobile company will also be eligible for this category if they have a net worth of 500 crores, along with parties eligible for Bundle A, B and C.

“The packages have been divided in a manner where it ensures maximum participation. This will keep the competition intense, transparent and allow BCCI to maximise its revenue potential to the fullest,” said BCCI treasurer Arun Dhumal.

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