“The openness of bidding is important for this process. In the present day due to the value of rights, attempting to conduct the exercise of this size with closed bids is not a good idea,” BCCI treasurer Arun Dhumal, who is among the most prominent office-bearers who oversee the tender process for the past few years, said to TOI.
The time that the BCCI last auctioned off its IPL rights to the media in the year 2017 it was done by way of a closed bidding procedure. In the months prior to the auction in 2017, an ex- Rajya Sabha member Subramanian Swamy filed Public Interest Litigation (PIL) before the Supreme Court, arguing that rights of this magnitude worth should not be purchased by closed bidding.
The Supreme Court, on the contrary, had decided to leave the issue up to BCCI to decide. the BCCI remained in place for five more years, despite no legal reason to decide what the board of cricket did in order to keep the procedure as simple as possible.
“In 2017 we witnessed an intense bidding process, but be aware that the differences between the bids that Star (now Disney) bid and the combination of bids submitted was hardly noticeable. It was an eye-opener. If there had been an electronic auction with other participants, they could have increased the stakes. Most likely that, in all likelihood, the entire deal would’ve been sold for more than $17,000 or more, if there had been an electronic auction,” says Dhumal.
The BCCI was able to go ahead with e-auctions this time because of the advantages of hindsight.
A dozen potential players have signed the offer of paper which is now part of the running. The industry speculated that this could be a contest between the “Big Five” which includes Viacom’s JV, Disney-Hotstar, Sony, Zee, and Amazon There’s no reason to believe that a new competitor shouldn’t be able to join the fray.
For those who had been following the news during 2017, the jaw-dropping offer of Rs 3900 crore was a complete surprise.
“With the same kind of technological advancements we’ve witnessed over the past five years. We expect that the digital world will be fiercely debated. It’s an ever-changing space that may throw some surprises. In the same country as us, TV isn’t going away quickly. Therefore, traditional media companies are eager to grab the linear bundle due to the coverage. The last mile connectivity it offers,” says Dhumal.
For those who have been keeping track of the developments, let them know that they are not alone. The BCCI will hold an auction to purchase the rights in four categories. the first being) TV in India and A) digital in India, B) Digital in India and C) an unexclusive collection of matches Digital in India. and the fourth category is) all over the globe. The price of Package A’s base per match is Rs 49 crore and Package B’s cost is 33 crore. Package C’s 16 crores and Package D’s price is 3 crore.
Insiders in the industry say BCCI’s collection of these rights is “outstanding.”. It is also believed that no one can take home the entire set. Without investing an enormous amount of work and spending money.
“My personal opinion is that any group that opts for Package B will also attempt to choose Package C when the exclusivity aspect is taken into consideration. That’s why this auction is gaining momentum. In any case, it goes, one thing is certain: The BCCI will get the most benefit from the auction process due to the manner in which it has been designed. The programs make sure that no one side has a monopoly over other parties,” says Dhumal.
Cricket is the most popular sport in India which is why it’s a good idea for multinational media companies that aim. To guide their content strategy for the coming five years, purchasing any. or all cricket in the coming year will be among the most obvious ways to gauge participation.
“The world OTT game is evolving rapidly and there are bidders that could bid. They will cricket once more as the primary driver to boost their numbers. This is the evolving scene I was referring to. In 2005, Facebook offered nearly 4000 million for digital rights in the first. It was an eye-opener to the market. There will be bidders with their unique views as well as business strategies to base their strategies on. Therefore, it’s hard to determine who’ll be the one with which plan,” Dhumal adds.