The Indian Premier League is the most prestigious domestic cricket tournament globally. Besides giving aspiring domestic cricketers a stage to prove their caliber, the prominent cricket league allows fans to witness and support their favorite teams featuring world-class players. Moreover, IPL also offers hardcore fans to indulge in fantasy cricket using online fantasy cricket app.
Like every other tournament, the Indian Premier League is broadcasted on specific TV channels and OTT platforms. A special auction is held every five years in which multiple major media companies and digital outlets compete against each other by placing bids to win media rights to the tournament.
This article will highlight what IPL media rights are and cover numerous aspects related to them. Let us begin:
What are IPL Media Rights?
As the name suggests, IPL media rights are the legal rights that enable the acquiring company or outlet the authority to broadcast legally or telecast matches on their respective platforms without facing any backlash or objections from other parties. Every five years, a special auction for selling the Indian Premier League’s media rights is held, wherein many companies participate to win.
Every 5-year cycle’s auction features different packages, i.e., the overall media rights are divided into different packages, which further contain subsections. Bidders aim to bag as many rights as possible. However, the rights are divided amongst different outlets and companies. In the highly-anticipated auction, multiple bids were announced for the upcoming five-year cycle, i.e., 2023 to 2027.
What Packages Were Featured in the 2022 IPL Media Rights Auction?
Every IPL media rights auction features different packages. The 2022 iteration of the 5-year auction featured four packages in total. Here is a brief look at each:
- Package A – Television broadcasting rights for the Indian subcontinent.
- Package B – Digital broadcasting rights for the Indian subcontinent.
- Package C – Non-exclusive package (Digital) consisting of 98 matches for the entire 5-year cycle.
- Package D – Overseas or international TV & digital rights, which includes 5 sectors, namely Middle East and North Africa, United States, United Kingdom, Australia, and South Africa.
Which Company Won the Four Packages and For How Much?
As mentioned earlier, media rights are generally not acquired by a single company or digital outlet. It ism also important to note that the 2017 auction is an exception since the Star India network won all the rights. Here is a look at who won which package at last year’s media rights auction and all other details related to it:
- Package A
Package A was sold to the Disney Star network for a staggering amount of 23,575 crores. By winning the bid for television broadcast rights for the Indian subcontinent, the media giant can broadcast 74 matches in 2023 and 2024, 84 matches in 2025 and 2026, and 94 matches in 2027.
- Package B
The renowned VIacom 18 Network acquired Package B by paying a lump sum of Rs. 20,500 crores. Being the rightful owner of the second package permits them to broadcast 74 matches in 2023 & 2024, 84 matches in 2025 & 2026, and 94 matches in 2027.
- Package C
Viacom 18 also acquired the third package, or Package C, by paying approximately Rs. 3258 crores. By acquiring the non-exclusive package, the Viacom 18 network has the authority to broadcast 98 matches throughout five years, including 18 matches in 2023 & 2024, 20 matches in 2025 & 2026, and 22 matches in 2027.
- Package D
Times Internet won the last package, which featured overseas or international TV and digital rights in five regions. The S-tier media company paid a massive amount of Rs. 1058 crores to acquire the package. They now have the authority to broadcast a total of 410 matches across a span of five years in the aforementioned regions.
Who Gets the Revenue Earned by Selling the Rights?
The revenue earned by selling the rights is divided equally between the BCCI (Board of Control for Cricket in India) and the franchises or teams which are part of the Indian Premier League. The money earned by both parties is utilized by them in the following ways:
BCCI – Uses the money for expenses related to managing and governing Indian cricket. The revenue is divided amongst:
- Players
- State associations
- Staff expenses
- Other cricket-related expenses
Franchises – The earned revenue is divided amongst every team equally. It is used for balancing expenses.
The Increment in the Price of Media Rights Over the Years:
The Indian Premier League’s first edition was held in 2008. The price at which media rights are sold has exponentially increased. Here is a look at the figures:
2008 – Sony acquired all digital and television rights for the next 10 years (2008-2017) by paying an amount of Rs. 8200 crores.
2017 – Disney Star acquired all digital and television for the next five years (2017-2022) by paying Rs. 16,347 crores.
2022 – Disney Star acquired the TV rights for India by paying Rs. 23,575 crores. Viacom 18 acquired digital rights for India by paying Rs. 20,500 crores. Times Internet and Viacom 18 also got digital and TV rights for the rest of the world. This total amount that will be earned or collected over the next 5 years (2023-2027) is approximately Rs. 48,391 crores.
Conclusion:
Selling and buying digital rights is an immensely beneficial transaction between the BCCI, the franchises, and the companies who place the bid. The entire business model of the IPL’s media rights makes the franchise a solid business venture for both the investors and the investees.