IPL Media Rights 2022: IPL Media Rights: At Rs 104 crore, IPL overtakes EPL in match value

(This story originally appeared in June 13, 2022)

By the time the first day of the IPL electronic media auction ended on Sunday for the next five-year cycle (2023-2027), it was clear that BCCI was one of the biggest media rights gold coins in the sports world.

That day, the cricket board pocketed Rs 43,050 crore (about $5.5 billion) – an increase of Rs 26,050 crore ($3.3 billion) over the previous rights cycle – bringing the IPL cost per match to over Rs 104 crore ($13.4 million) for the corresponding figure of the English Premier League in the amount of $11 million.

Thus, the IPL is now only second only to the US NFL ($17 million) in terms of cost per match; it is already ahead of other major leagues in the world such as the NBA and MLB. On the second day of the electronic auction, larger amounts will fall.

“Crazy Bidding” Gives IPL More Financial Opportunity

The long-awaited auction for the rights began at 11:00 on Sunday. Four of the seven contenders took part in the fight – a joint venture led by Viacom, Disney + Hotstar, Culver Max Entertainment (previously, Sony Pictures) and Zee Group – immediately start working with packages A and B.

Package A is for Indian TV rights only, the base price is set at Rs 49 crore. Package B is for Indian digital rights with a base price of Rs 33 crore.

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By the time the first day ended and the process was rescheduled for Sunday at 18:00, Package A had risen from Rs 49 crore to Rs 57 crore, and Package B had risen from Rs 33 crore to Rs 48 crore.

This now means that the cost per match for which these rights are being sold – the A+B package – is Rs 104 crore. This is Rs 49.5 crore per match more than in the 2018-22 rights cycle when Star India made a successful bet on each IPL game for Rs 54.5 crore.

Star paid around Rs 17,000 crore (including 14 extra matches in 2022) to secure the rights in the previous auction, which was closed.

The current electronic auction, which is likely to be the main part of the action on the second day, has already generated an IPL of Rs 23,370 crore for Indian TV and Rs 19,680 crore for Indian digital TV. It follows that BCCI has already received Rs 43,050 since the first day of the e-auction and what is happening here already leads the cricket board to believe that the total may well exceed the Rs 55,000 crore mark by the time this process is completed and, perhaps even touch Rs 60,000 crores. Once packages A and B have been sold – and it is still possible for two separate parties to opt out of TV and digital TV, along with the possibility of one side opting out of both – packages C and D will come into play.

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Package C includes a set of 18 non-exclusive matches, including four playoff matches and weekend night matches on double heads day, while package D includes the Rest of the World.

Along with the four contenders mentioned above vying for packages A and B, SuperSport from South Africa (for Sub-Saharan Africa), Times Internet (for the US) and FunAsia from the UAE will compete for package D.

In package C, you can find entries from any company that did not win package B and might want to try their hand at a non-exclusive set. It should be noted here that the winner of package A can challenge package B, and the winner of package B can challenge package C.

The BCCI made no official announcements on Sunday evening and all bidders refrained from interacting with the media, even unofficially, with a heavy day of trading approaching on Monday.

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However, sources say: “Such bidding seems crazy. To an outsider, it doesn’t make any sense. Only those who bet in terms of price discovery can explain how they intend to monetize this.

“And yet, we are far from the end of it. Day two could see the battle for packages A and B continue. By the time the C package goes on sale, it might get crazier than we think.”