MUMBAI: Star India bought itself a virtual monopoly of cricket broadcasting on Monday by winning the media rights to the Indian Premier League (IPL) for a whopping 16,347.50 crore (USD 2.55 billion) for the next five years.
It’s a staggering deal by any reckoning.
Here’s a run through of the mind-boggling figures and what they mean.
1. When Sony India bought the IPL broadcast rights for the first time in 2008, it was for Rs 8,200 crore. The present deal of Rs 16,347.50 is nearly double of that. That’s an astonishing figure, Rs 16,347 cr or US$ 2.55 billion. Few global sports generate that kind of money.
2. The Sony deal was for 10 years. Star India’s rights to IPL will be for five years only 2018 to 2022.
3. Star India’s deal is for TV rights in India and abroad and digital rights.
4. From the Sony deal, BCCI earned Rs 820 cr a year. The Star deal will bring in Rs 3269 cr per year, almost four times more.
5. There are 8 teams in the IPL and they play 60 matches. So that works out to Rs 54.48 crore per match. If there are 10 teams and 70 matches, it will come to Rs 44.17 crore a match.
6. Sony's individual bid for TV rights was higher than Star's. But Star's consolidated bid of 16,347 crore was more than the total of other bids.
7. If money from IPL media rights is staggering, here’s what the BCCI earns from its other properties. Sponsorship of Team India by the Chinese mobile phone maker Oppo earns it Rs 1079 crore for five years. The IPL title sponsorship by Vivo bring in Rs 2199 crore (also five years). Sponsorship rights for matches in India (Paytm) fetches Rs 203 crore (four years). And then Rs 3861 cr (six year) comes in from Star for TV rights to bilateral cricket in India.
8. Altogether, BCCI's annual earnings will soar to Rs 4618 cr a year, with IPL media rights contributing Rs 3269 cr.
9. IPL now well and truly dwarfs India’s international cricket. The BCCI will earn Rs 55 crore approximately from every IPL match compared to Rs 43 crore for each international match that India play.
10. What does this really mean? As Star India CEO Uday Shankar said, “India, cricket and IPL have changed dramatically since its (IPL’s) inception (in 2008) and this bid is a reflection of that.”