IPL vs ICC media rights: How the two auctions stack up for broadcasters

The winning bid of $3 bn by Star-Disney was double the base price of $1.44 billion set by the ICC, while BCCI raked Rs 48,390 crore for IPL's 2023-27 cycle

The sale of media rights for two key properties, Indian Premier League (IPL) and the International Cricket Council (ICC) tournaments, is a study in contrast.

On Saturday, Disney-Star retained the right to broadcast ICC tournaments on digital and television for four years for $3 billion (nearly Rs 24,000 crore; based on the current exchange rate). It had picked up the same rights in the previous cycle (2015-23) for approximately $2.1 billion (or nearly Rs 13,081 crore; based on the exchange rate in October 2014, when the ICC media rights auction had happened).

Also, the winning bid of $3 billion by Star-Disney was double the base price of $1.44 billion set by the ICC for a four-year cycle. The base price for an eight-year cycle was $4 billion. Sources in the know say that Disney's bid far outpaced that of rival broadcasters who had put in bids in the region of $2 billion, ensuring it emerged the clear winner in a single round. 

"The reason the second round wasn't triggered was because Disney's bid was far higher than its rivals. Had the difference between the two highest bidders been under 10 per cent, it would have pushed the auction into the second round," an executive in the know said.

The IPL auction for the 2023-27 cycle, which concluded in June, on the other hand, was an e-auction that stretched over three days, raking in Rs 48,390 crore for the Board of Control for Cricket (BCCI), which organises the T20 tournament annually. This was over two-and-a-half times the previous rights value of Rs 16,347.50 crore, paid by Disney-Star for both television and digital rights.

While Disney-Star retained the IPL television rights for Rs 23,575 crore, rival Viacom18 had bagged the digital rights for Rs 20,500 crore, marking a first for the world’s second-most valuable league to have two broadcasters in a single media cycle.

The ICC media rights auction for the 2024-31 period, meanwhile, was a closed-loop exercise, implying broadcasters had to submit their financial bids in sealed envelopes. Unlike the IPL e-auction, which was fixed for five years in terms of tenure, broadcasters in the ICC media auction had the option to bid for either four years or eight years in terms of tenure.

"We are delighted at being able to continue our association with the International Cricket Council (ICC). Under the new four-year agreement, Disney-Star has retained the exclusive digital streaming and television rights for both men’s and women’s events through 2027. We look forward to strengthening our partnership with ICC in the years ahead," K Madhavan, country manager and president, Disney-Star, said.

Concerns around transparency had increased in the run-up to the ICC media auctions on Friday, after the process auditor PriceWaterHouse Coopers walked out before submission of bids. 

"A four-year cycle will mean that ICC will have to conduct auctions again in 2026," an executive from one of the broadcasting networks said. "A fixed tenure like the IPL ensures uniformity. That is one. Also, the first round was in sealed envelopes. In the event there was a tie between two players, there would be an e-auction in the second round. This process seemed cumbersome and opaque," he said, declining to be quoted owing to the sensitivity of the matter.

Viacom18 had written to ICC recently, asking for an e-auction process throughout the bidding process.

“We strongly urge ICC to consider and adopt e-auction as the sole process for the current bid in the interest of complete transparency and fairness. Strong steps are needed to safeguard the sanctity of the entire process,” the letter by Viacom18 to ICC said.