Indian Premier League media rights bid will be the biggest event on the national sports calendar over the next two days. Bigger than any other sporting activity on the field. Stakeholders, market and sports lovers anxiously await the number that decides who will broadcast the IPL over the next five seasons.
After BCCI, franchisees will benefit the most. The assumption of unprecedented revenues is swelling the stocks of the IPL franchisees, who are registered with stock markets.
Sun TV shares recorded around 10.15 per cent gain on its stock, which rose to Rs 768 with a gain of Rs 70.90 on Friday. The upward swing emerged on two factors – broadcaster’s digitization plans and an expected rise of company’s IPL team Sunrisers Hyderabad Revenues from the central pool.
The IPL revenues, riding on a Rs 440 crore per annum commitment by Vivo for the team jersey title sponsorship and an expected over a billion dollar – assumed to go beyond a billion and a half – bid, are expected to jump several fold. That will also mean a windfall for the franchisees in terms of their central pool revenue share.
The twin factors have helped Sun TV stocks rise to Rs 768, up by Rs 70.90 on Friday afternoon. The company in its report has mentioned that IPL media rights may go up to Rs 9,500 crores. “Sun TV owns an IPL team and we are already factoring in a 30 per cent increase in its IPL revenues, assuming rights sale at Rs 9,500 crore in FY19,” the report quoted by livemint mentions.
It further adds that company’s consolidated revenues in financial year 2019 may further increase by two per cent if the IPL rights for the next five year cycle are sold for Rs 12,500 crore.
The market is assuming up to 300% rise for the television rights, which were with Sony for the first ten years, whereas digital rights too may see an unprecedented up to five time escalation.