In a significant policy shift, the Board of Control for Cricket in India (BCCI) has decided to permit consortiums to participate in its bilateral media rights auction. This move could have a considerable impact on Sony Pictures Network India and Essel Group (Zee Network), as they are actively planning for a long-awaited merger.
A report from Inside Sport states that the BCCI’s previous stance had barred consortiums from media rights bidding, even excluding them from the Indian Premier League (IPL) media rights auction last year. However, with this regulatory modification, two media companies like Sony and Zee can now join forces, potentially creating a robust corporation that may enhance the value of media rights. Their combined resources in linear and digital media could pose a tough challenge to competitors like Viacom 18 and Disney Star.
The merger between Sony and Zee has been closely watched by India Inc for the past few years, with legal disputes delaying the final approval. However, recent updates suggest that the unification is expected to be completed by October 1. Although it’s unclear whether they will establish a consortium, the BCCI’s Invitation to Tender (ITT) indicates that such a move would not face any objections.
The ITT, released on October 3, includes three crucial dates for the media rights auction. The bidding process will conclude on August 31, with questions to the BCCI accepted until August 16. Technical assessment bids must be submitted by August 28, two days before the auction.
The report published by Inside Sport further highlights that participating enterprises must ensure their incremental offers total at least Rs 1 crore. Whether bidding for India subcontinent linear rights and digital rights or worldwide TV and digital rights, companies must increase their offers by Rs 1 crore combined. For example, a bid of Rs 25 lakh in Package A and Rs 75 lakh in Package B would meet this condition, as long as the total exceeds Rs 1 crore. Even if a corporation bids on only one package, the incremental bid must still be Rs 1 crore.
The upcoming five-year cycle, starting in September 2023, will include 88 matches. The base price for linear rights is Rs 20 crore, and for digital rights, it is Rs 25 crore. The BCCI warns that if the total value falls short of Rs 60 crore (approximately Rs 5,200 crore), the entire process may be revisited.
Additionally, the winning firm(s) must ensure commentary provision in five languages, including English and Hindi, with the choice of the remaining three regional languages left to the broadcaster’s discretion.