BCCI expecting media rights deal worth Rs 40-45k crores for 2023-27 seasons of IPL, CSK become country's first sports unicorn.
The Board of Control for Cricket in India (BCCI) is anticipating a whopping Rs 40-45k crores from selling the media rights deal for the 2023-27 seasons of Indian Premier League (IPL). Several networks are vying for the IPL media rights, including Sony Sports Network, Disney Star Network, Reliance-Viacom 18 and Amazon, among others.
The BCCI will sell the media rights for five years, i.e., between 2023-27 via an e-auction. For that, the BCCI will issue the Invitation to Tender (ITT) around or before the player mega-auction on February 12-13 to be held in Bengaluru. It will be followed by an e-auction in the next 45 days by the end of March.
“E-Auctions in the past also have given good results to BCCI’s commercial inventory. We feel we will get better value for the rights via e-auction. The tender will be released by the second week of February,” a top official of the BCCI confirmed to InsideSport.
According to reports, the BCCI might earn nearly three times what it did for the 2018-2022 cycle when Star India paid Rs 16,347 crores for media rights. Sony Pictures Network had previously secured media rights for the period 2008-17 for a total of Rs 8,200 crore.
The BCCI now expects the money to quadruple in the 2023-27 cycle, after nearly doubling in 2018 when Star India took over the media rights. As per Insidesport, it could cost anywhere between Rs 40,000 and Rs 45,000 crores. The windfall earnings from the sale of IPL media rights are expected to be significantly more than BCCI president Sourav Ganguly's prediction of Rs 35,000 crore.
Increase in investment in sports
While the BCCI is expected to mint Rs 40-45k crores, money pumping into the Indian cricket system has quadrupled over the years. The brand value of the IPL has helped the organizers to give ample space for stiff competition among several media networks. One among those contenders, Disney Star Network has expressed an interest in bidding for the following cycle's rights.
“Sports business for us is in an investment mode and we won't shy away from investing heavily. We are going to be bullish on all rights renewals including IPL," K Madhavan, President of Walt Disney Co India and Star India said.
While Amazon Prime has already stated its ambition to go after IPL media rights entirely, Reliance-Viacom 18 may signify its debut into the bigger Indian cricket market with an ambitious offer for IPL media rights. The live streaming of events has already become convenient for the viewers. Apart from them, other major names that are rumored to make bids for the streaming rights are Facebook and Google. One can expect a bidding battle to grab media rights for IPL due to so many contenders being in the fray.
Chennai Super Kings becomes a billion-dollar brand
Meanwhile, Chennai Super Kings (CSK) has become the country's first sports unicorn, with a market capitalization of more than USD 1 billion and a share price range of Rs 210-225 on the grey market. The MS Dhoni-led side has even surpassed the market cap of its parent entity India Cements which holds a market cap of Rs 6869 crores.
CSK has won four titles in the IPL, all under the captaincy of MS Dhoni. The side lifted the trophy in the United Arab Emirates (UAE) in IPL 2021.