IPL expects to have increased profits with various strategies



IPL expects to have increased profits with various strategies

IPL expects to have increased profits with various strategies

2 March 2022  Authorbet365baji

The upcoming media rights tender for the Indian Premier League (IPL) could include a collection of bundles to ensure that multiple broadcasters are involved. In contrast to recent practise, all parts are unlikely to be bundled together and sold to a single party. As an insider with the Board of Control for Cricket in India (BCCI) describes it is similar to the more parties, the more profit.

The origins of the concept may be traced back to the sale of English Premier League (EPL) rights, which were purchased by Sky Sports, BT Sport, Amazon Prime Video, and BBC Sport. All broadcasters, both television and internet, purchase a set number of matches to show exclusively, with the BBC releasing a daily highlights package, which is available only to BBC subscribers. Because of England's severe anti-monopoly regulations, the EPL may be hesitant to partner with a single entity, but the IPL, which has no such limits, could go even further.

According to industry experts, one of BCCI's goals is to develop a non-exclusive category. This aspect of the tender, which is likely to be released in approximately a week, might be a package that allows multiple tv networks to broadcast the same match at the same time.

With numerous companies, including Star, Sony, Reliance's to-be-launched sports channel, and Amazon, getting a piece of the IPL, which is regarded the most lucrative cricket franchise in the world, the estimated revenue could exceed Rs 30,000 crore. According to a source, a suggestion was made to the BCCI. To confirm if it has been implemented, they will have to wait for the ITT (Invitation To Tender) paper.

The exact make-up of this group of games is still being debated, but early indications suggest that the weekend matches may be included. It's possible that 32 matches will be played over the course of eight weeks (including two double-headers per weekend), accounting for 45 percent of the league's 74 matches.

Separation of television and internet rights would be another component of the rights, as BCCI secretary Jay Shah recently stated. If implemented, it would remove the composite bid technique, which entails making a single gigantic offer to appropriate all packages for a cost more than the sum of their parts. Last time, Star fended off a joint competition from Sony and Facebook by submitting a composite bid. The sum was Rs 16,347 crore, a startling and mind-boggling figure.

To aid broadcasters in recouping their investment, the BCCI is rumoured to be considering increasing the strategic timeout period from 150 seconds to three minutes. In each IPL match, there are usually about 100 units of 30 seconds each (about 3000 seconds) for ads, including timeouts. More time for inventories implies a longer timeout period.

Ultimately, there's the main question: what will be the final number of people willing to pay for the rights? According to logic, a 10-team league would entail 14 additional games, or a 25% increase in the number of matches, which would immediately equate to a 25% increase in income, or Rs 20,000 crore, up from the current Rs 16,347 crore.

Many analysts now expect that the IPL will double in value. According to the widely accepted market formula of Rule Of 72, the IPL's worth should have increased by 14.5 percent in the last five years, from Rs 20,000 crore to Rs 40,000 crore. Has it, in fact, happened?

The BCCI conducted the analysis with the help of KPMG, a professional firm that is consulting the board on how to optimise revenue from IPL rights. The prevailing sense is that it has grown, but it will not be known until May, when the process is completed, whether the league has grown by 14.5 percent or more. We will just have to wait and see.