Star India’s composite blow knocks out all in the ring

Star,Sony,IPL,Star India,Star India strategy

IPL rights go to Star India for the next five years – each territory and all properties. Rest may now bask in the glory of their individual “best” bids – all collectively failing to deal the blow dealt by a composite bid of INR 16,347.5 crore ($2.55 billion) by Star India.

It was the strategy to make a global consolidated bid for everything on the platter, that turned the tables in Star’s favour. Whereas incumbent Sony lost its most precious sports property in spite of committing over 55% to the figure Star has quoted as an individual number for Indian TV rights – it was INR 6,196.94 crore ($96.67million) to Sony’s INR 11,050 core ($1.72billion).

Facebook had submitted a bid of INR 3,900 crore ($68 million) for digital rights over the next five years. Star valued the property at a mere INR 1,443 crore ($2.25 million). Even Airtel INR 3,280 crore ($ 51 million) and Jio INR 3,075.72 ($ 48 million) were way ahead of Star. However, the big player flummoxed all in the combined numbers game, which will now never be revealed officially and remain always closest to the winners chest forever.

The table below reveals how each property is valued by whom.

Source: BCCI

The rights which Sony had acquired for INR 8,200 crore in 2008 have registered a rise of nearly 100% percent. Digital rights similarly witnessed a surge of over 1300%, if the best bid made by Facebook is to be taken into account. Star India had paid BCCI, INR 302 crore for the 2015-2017 three-year digital rights to play IPL on Hotstar.

Star Sports CEO and Chairman backs this unprecedented growth in IPL rights numbers. “What was paid in 2008 was in 2008. India, cricket and IPL have changed dramatically ever since. It is (what Star committed for IPL rights) is a reflection of that,” he said after winning the bid.

Yes the times have indeed changed dramatically for the BCCI balance sheet, too. The Indian cricket board that had earned an average INR 1,011 crore from the IPL media rights in 2017 will getting INR 3,269.5 crore per annum from the same property.