IPL Valuation Per Match Crosses Rs 100 Crore Mark on Day 1

The Indian Premier League’s media rights auction saw strong bids for television and digital rights for the Indian subcontinent with each match of the cash-rich league valuing at over Rs 100 crore.

As bidding begins on day two, the cumulative valuation for media rights could touch a staggering 50,000 crore mark, which would be one of the largest in terms of global rights across any sport.

Four out of the seven players in the fight, Viacom18, Disney-Star, Sony and Zee, engaged in nearly seven hours of unending combat that remained indecisive with Package A (India Television Rights) and Package B (Indian Digital Rights) that Cumulatively brought up. 42,000 crores (~$5.37 billion) and still counting.

The final result may not appear as late as Monday or Tuesday as the battle for packages A and B will continue on Monday.

Once it is over, the winner of Package B can challenge Package C containing 18 non-exclusive digital rights games for Rs 16 crore per game, after which Package D (external TV and digital rights bundled at Rs 3 crore per game) will come up for bidding.

“As of now after 5.30pm the TV offer has gone up to Rs 57 crore per game from its base price of Rs 49 crore and Indian digital rights have seen incredible growth from Rs 33 crore to Rs 48 crore per game,” said a senior CCI employee. British PTI on conditions of anonymity.

“So from the combined valuation of each Rs 54.5 crore game from the last five year cycle, it has already crossed the Rs 100 crore (Rs 105 crore plus) mark. It is incredible. Will start again tomorrow.”

While it is not known which part was the most aggressive of the four bidders, the Viacom18-Uday Shankar consortium is expected to engage in an intense bidding war with current rights holder Disney (Star).

“We were expecting great numerical bids and as the struggle for combination A and B continues, the magic number of Rs 50,000 crore can be touched. For packages C and D, one can get a rough estimate that another Rs 5,500 crore will be added if these first two packages stop at 45,000 crore. Crore,” said another BCCI official who is in Mumbai.

Among the company’s VIPs, one of the biggest names in the TV industry, who knows IPL media rights offering shows like the back of his hand, said: “BCCI will laugh its way to the bank but if the media rights are over Rs 50,000 crore, they will have a range its own consequences for this kind of aggressive bidding.”

Market watchers say Zee can be tough on Package D since they’ve already secured a dedicated overseas viewer base with Zee TV series and now have their own ZEE5 app.

“With Rs 3 crore as the base price, Zee can raise its game in this category,” the source added.

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