To bid or not to bid: Broadcasters unhappy with BCCI's match valuation

Though the BCCI has quoted less than the current Rs 43 crore per match for the next cycle, the bidders have expressed surprise over the same amount being quoted for matches not involving India.
Media rights for matches in India from 2018-23 will be awarded on April 3. (File photo)
Media rights for matches in India from 2018-23 will be awarded on April 3. (File photo)

CHENNAI: With just three days left for the awarding of television and digital rights for international and domestic cricket in India from 2018-23, two potential bidders —  Star India and Sony Pictures Network — have written to the BCCI expressing concerns. Though the BCCI has quoted less than the current Rs 43 crore per match for the next cycle, the bidders have expressed surprise over the same amount being quoted for matches not involving India.

Star, official broadcaster for the last five years, in its letter to the BCCI which is in possession of Express, writes, “The on-line auction process requires each bidder to specify a per match value for each contract year without any differentiation in value based on visiting teams. Additionally, the requirement that the bidder attribute the same per match value that do not involve India’s senior men’s team will have a further adverse impact on commercial valuation. The BCCI will appreciate that matches between two visiting teams will never have the same commercial value as involving the India’s senior men’s team.”

Star cited viewership data of the 2016 Asia Cup in Bangladesh, where matches not involving India received little attention. “Even an India match involving non-Test playing teams like UAE generates more than double the viewership of a non-India match between major Test teams. It is amply clear that paying an identical per match value for India matches and non India matches is commercially unviable for the broadcaster. The unprecedented exposure created by the BCCI’s position creates very critical concerns for Star India and it is next to impossible to create a viable business proposition under such circumstances.”

The decision to quote `33 cr as base value was taken by the CoA and it was criticised by BCCI members, who said the marketing committee or general body was not consulted. Although Star, which bid for the IPL for `16,000 crore last year, is not expected to go all out, Sony may do so. Having lost IPL, which they held for 10 years, they are expected to throw everything at this. Sony have raised concerns over the late changes made in bid documents, which they say has created uncertainty in placing a bid on the deadline day (Apr 3).

“The clarification says all matches will be valued the same. This me­ans an India-Afghanistan-Bangladesh or an India-Banglad­e­sh-Zimbabwe will be valued equally with an India-Australia-South Africa. For the BCCI to consider all of them as having the same value does injustice to bidders.”

venkatakrishna@newindianexpress.com

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