IPL Media Rights Tender Auction Vs BCCI Earnings | All About IPL Broadcasting, Media Rights Digital Telecast Rights | BCCI will earn 45 thousand crores by showing IPL on TV and OTT, this is 15 times the sports budget of the country; Know how?

One hour agoWriters: Abhishek Pandey

The BCCI on Tuesday issued tenders for the media rights of the IPL season 2023-2027. The e-auction for the media rights of IPL will start from June 12.

It is believed that by selling media or broadcasting rights of IPL 2023-2027, BCCI can get a hefty price of Rs 45000 crores, because this time it plans to sell the rights to show matches on TV and OTT separately. Along with Star, many companies are involved in the race to buy IPL media rights, which can create a new competition for these rights. At present, the broadcasting rights of IPL are with Star Sports, which ends with the 2022 season.

Let us know how BCCI can benefit thousands of crores from media rights for the next 5 seasons of IPL? Which companies are in the race? Which are the sports leagues with the most expensive broadcasting rights in the world? Before knowing all this give your opinion by participating in the poll…

BCCI issues tender for IPL media rights auction
While issuing the Invitation to Tender (ITT) for the media rights for the five seasons of IPL 2023-20027, BCCI said that for the first time there will be an e-auction of IPL media rights, which will start from June 12. These tenders can be purchased till May 10, for which a non-refundable amount of Rs 25 lakh + GST ​​will have to be deposited. BCCI Secretary Jay Shah said that he is hopeful that the IPL will reach new heights by organizing two new teams and more matches.

Media rights to be sold for IPL 2023-2027
Media rights are the biggest source of income for BCCI and teams in IPL. About 70% of the total earnings of IPL comes from this.

  • IPL started in 2008. Prior to this, media rights were bought by Sony till 2017 i.e. for 10 seasons. For this Sony had spent 8200 crores.
  • In 2018 these rights were sold again and this time BCCI got almost double the price for it. Star Sports bought IPL broadcasting rights for Rs 16,347 crore for five years from 2018-2023.
  • Now IPL broadcasting rights are to be sold again for five years from 2023 to 2027. But this time BCCI will sell these rights by dividing them into four separate packages instead of one package.
  • By selling the rights in four separate packages, BCCI is expected to fetch a manifold higher price. Also, with this, more than one company will have the opportunity to buy these rights.

What are broadcasting rights or media rights
Broadcasting rights are also often called media rights. This means that a company buys the right to show the matches of that league from the organization running a sports league for a fixed period and a fixed amount.

For example, for the last 5 years, IPL matches are telecast only on Star Sports’ channel and its digital platform Hotstar, this is because Star has bought these rights from BCCI for Rs 16347 crore for 5 years.

BCCI may sell media rights in four separate packages

  • This time the BCCI can sell IPL media rights in four separate packages or bundles, in which television and digital rights will be kept separately.
  • According to media reports, this decision was taken in the IPL Governing Council meeting held on March 25. Till now only one company used to get all these rights. The decision to sell the rights in different packages has been taken by the BCCI in consultation with advisory firm KPMG.
  • Under this, the television rights in package A, digital rights in package B, non-exclusive special category (bundle of 18 matches) in package C and broadcasting rights for the rest of the world in package D.
  • Also, this time multiple broadcasters will not be allowed to bid simultaneously on the OTT platform by forming a consortium. That is, the recently merged Sony and Zee will not get a chance to bid together, but they will have to bid separately.

IPL media rights can be sold for 45 thousand crore rupees
For the next five years, BCCI is expected to earn several thousand crores from the sold media rights.

  • According to media reports, broadcasting or media rights for IPL 2023-2027 can be sold for up to Rs 35,000 crore.
  • According to reports, according to BCCI’s own assessment, these rights can be sold for up to Rs 40-45 thousand crores.
  • According to estimates – the television rights of IPL alone are estimated to be sold for 20 thousand crores, while digital rights are also expected to get at least the same amount.
  • In the last few years, the popularity of digital medium has increased rapidly due to the advent of many OTT platforms including Hotstar, Sony Liv, Amazon Prime, Netflix.
  • OTT means over the top are digital platforms where content is provided to the users through the Internet instead of cable, broadcast and satellite. Hotstar, Sony Liv, Amazon Prime, Zee Five are examples of OTT.

Which companies can join the competition to show IPL from 2023

  • Right now, Star may have the broadcast rights of IPL, but it is going to compete with many big companies in the bidding for the next 5 seasons.
  • According to reports, many companies in the country and abroad are involved in the race to buy the broadcasting rights of IPL. Apart from Star, giants like Sony, Zee, Meta (Facebook), Amazon, YouTube (Google) and Reliance (Viacom-18) are involved in the race to buy these rights.
  • During the last few years, the trend of watching IPL on TV as well as on digital platforms like OTT has increased rapidly. In such a situation, BCCI expects digital rights to be sold as expensive as TV rights in the new media rights.
  • Popular OTT platforms in India include Star’s Hotstar, Zee’s Zee Five, Amazon’s Amazon Prime and Sony’s Sony Liv. There may be a competition for these OTT platforms to buy digital rates of IPL matches.
  • The way BCCI is in the mood to sell media rights in different packages, it is possible that during 2023-2027 some other company will show IPL on TV and some other company has the right to show the match on OTT i.e. digital platform. Ho. Not only this, some other company can also get the right to show matches outside India in the rest of the world.

BCCI does not have to pay tax on huge earnings from IPL
BCCI may make big money in IPL, but it does not have to pay tax on it. Actually, for promoting cricket in the country through IPL, BCCI is exempted from paying tax on IPL earnings under Section 12A of Income Tax.

In 2016-17, the Revenue Department had appealed to the Income Tax Appellate Tribunal (ITAT) to abolish the tax exemption given to the BCCI on the IPL, but in November 2021, the ITAT rejected the appeal and ruled in favor of the BCCI. .

IPL media rights to be 15 times India’s sports budget?

  • The sports budget of the country for 2022-2023 is Rs 3062 crore. At the same time, it is believed that the media rights of the next 5 years of IPL can be sold for up to 45 thousand crores.
  • That is, about 15 times more than the sports budget of the country. From this you can guess that the earnings from the media rights of IPL alone are many times more than the total sports budget of the country.

How much does Star Sports earn by spending 16 thousand crores?
Star Sports is going to remain profitable even after spending more than 16 thousand crores on IPL broadcasting rights. Now the question arises that how does the star earn money by showing IPL matches?

  • Companies that show IPL earn money in two ways – one by showing advertisements and the other by subscription.
  • Till now 60 matches were played in every season in IPL, but after increasing from 8 to 10 teams in 2022, the number of matches has increased to 74. Increasing the match means that the broadcaster’s earnings will also increase.
  • According to reports, Star charges Rs 10-12 lakh for every 10-second advertisement in every IPL match. That is, every season the star earns big money from advertisements.
  • Apart from this, a subscription has to be taken to watch matches on Hotstar, whose annual charge for each user is a minimum of Rs 499.
  • According to the estimates of industry experts, in IPL 2018, Star earned Rs 2500 crores through advertisements and subscriptions on TV and digital.
  • At the same time, the figure of Star’s earnings doubled to 5200-5300 crores in 2021. It is believed that Star will earn a good profit even after spending 16 thousand crores.
  • The television viewership of IPL, ie the number of people watching it in every season, has reached about 40 crores. It has been increasing continuously since 2008. After 2019, it declined somewhat during the Corona era, but it is expected to pick up speed again.

Where is IPL in the world in terms of broadcasting rights?

  • In terms of the most expensive broadcasting rights, IPL is at number four in the world compared to other sports leagues in the world.
  • In this case, America’s National Football League ie NFL first, England’s Premier League Football ie EPL second, Major League Baseball ie MLB third, IPL fourth, Germany’s Football League Bundesliga 5th and America’s National Basketball Association ie NBA is in sixth place.
  • The special thing is that in terms of the most expensive broadcasting rights, the NFL at the top has 32 teams and 256 matches are played in every season, whereas till now there were only 8 teams in IPL and 60 matches were played in every season.

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Videogames entered his life in the late '80s, at the time of the first meeting with Super Mario Bros, and even today they make it a permanent part, after almost 30 years. Pros and defects: he manages to finish Super Mario Bros in less than 5 minutes but he has never finished Final Fight with a credit ... he's still trying.

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