India Cricket Update: The BCCI is in line for a massive profit, as the IPL broadcast rights (TV and internet) may fetch the Board up to USD 5 billion for the next five-year cycle (2023-2027), while the bidding process for the two additional clubs is got to earn some high-profile interest.
Star India has the current five-year rights (TV and internet) for the IPL from 2018 to 2022, but sources in decision-making positions say the valuation, which is now Rs 16,347.50 crore (USD 2.55 billion), may turn more than double to USD 5 billion (around Rs 36,000 crore approx at current exchange rate).
"There is a well-known US-based company which did send BCCI feelers some time back, expressing their serious interest in bidding for IPL media rights. With 10 teams playing IPL from 2022, the matches will go up to 74 and in any case, the valuation of the property increases," an official said, as mentioned in sports news reports.
"But with two new teams about to fetch anything between Rs 7000 crore to 10,000 crores, the broadcast rights are certainly going to shoot through the roof. So expect the IPL broadcast rights to go for anything above USD 4 billion and maybe up to USD 5 billion," he added.
Any foreign business interested in purchasing IPL properties must have an Indian subsidiary. There were only two significant competitors in the TV and digital media rights market the last time around, with Star India outbidding Sony, which owned the rights from 2008 to 2017.
Sony's final composite bid was Rs 11,050 crore, and Star had bid roughly Rs 5300 crore more (USD 1.47 billion). The Walt Disney Company India has a complete owned subsidiary called Star India.
The BCCI typically divides broadcast arrangements into categories like television, internet (streaming), radio, and social media, but this time it permitted both separate and composite bids.
The starting price for new IPL franchises is INR 2000 crore. A well-known former Indian cricketer could also become a minority partner.