Previous deal was for close to 4,700 crore
Good news for franchisees
Mumbai: The Board of Control for Cricket in India (BCCI) promoted Indian Premier League on Wednesday signed a whopping Rs. 8,200-crore Official Broadcast Partner agreement for nine years (up to 2017) with Multi Screen Media (MSM, formerly Sony) and World Sport Group (WSG).
MSM will now bring the 59 matches live from South Africa on SET Max with the DLF-IPL Season II set to start in South Africa on April 18, a day after the fifth and final One-Day International between South Africa and Australia.
Last year IPL had signed a contract with WSG-Sony for $1.026 billion for 10 years which included a sum of $108 million for marketing and promotion.
The fresh IPL agreement with MSM brings a happy end to a relation between the two that had soured after the BCCI cancelled the 10-year contract stating that MSM had violated the contractual obligations on two counts, mainly quality of broadcast last year and ground sponsor rights.
MSM moved the court against the termination of the 10-year contract, but on Monday the Bombay High Court rejected an interim relief for the broadcasting company. Even when the matter was in the process of litigation, there were speculation that the two parties would arrive at an out-of-court settlement and that MSM, which had made a huge profit out of the inaugural IPL last year, had offered to pay a much higher sum.
After announcing that the DLF-IPL would hold the second edition in South Africa, the IPL has achieved a major breakthrough, managing to renew the contract with MSM for a sum that can be regarded as a windfall because last year the agreement for a 10-year period was for a sum close to Rs. 4,700 crore.
Under the agreement between the IPL and franchises, the latter would share 80 per cent of the revenue from the media rights in the first five years and 60 per cent from sixth to 10th year.
The increased revenue from the media rights should mitigate the assumed fall in revenue for the IPL in the second year because the event was being moved overseas.
It is learnt that IPL had lined up two broadcasting companies — ESPN-STAR Sports and NDTV — after the fall out with MSM, but eventually MSM came up with an offer that Lalit Modi, Chairman and Commissioner, DLF-IPL, regards as the best.
“We are absolutely delighted with the new deal inked today with WSG and MSM. We have the best deal for the League and Indian cricket fans alike. I am certain that MSM will pull out all the stops in ensuring that the best technology is utilised to deliver excellent content that is creative, innovative and enriching for the cricket fans in India and across the globe,” said Mr. Modi.