After the recent #IPLMediaRights auction, the value of a single game touched US$15.1m (US$6.2b for a total of 410 games). That's Rs 118 cr per game (total of Rs 44,390 cr for 410.)
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In doing so, the per-match value in IPL crossed the per-match value of the English Premier League (EPL). That bit is right. EPL per-match value at present exchange stands at US$11m.
At 380 games, that's a total of US$12b for a three-year rights cycle.
But fair enough.
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However, the comparisons with NFL (at US$17m per game) are not correct. There are some calculation errors on the chart.
We have been making an enormous mistake in determining the value of the NFL rights from a per-match perspective.
The money that's come in from sale of #IPLMediaRights and the sponsorships that'll come in over the next five years promise to take the overall central revenue pool of the Indian Premier League just beyond Rs 54,000 crore approx.
Just a broad figure.
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In the previous rights cycle -- that same value was around Rs 21,000 cr.
Around 24% of this figure (we'll take Rs 90 cr per season as avg) was set aside as player-purse / season.
That's approx 4500 cr for 5 yrs across 10 teams (Rs 450 cr / team).
Money reserved for players.
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Now if the same percentage value has to be applied to the new commercias that are in place, then 24% of Rs 54,000 crore would mean an approximate Rs 12,500 cr.
(Although I believe that 24% should also go up). Anyway...
These are just broad back-of-the envelope figures.
1) The e-auction won’t be televised.
Why? Because numbers can’t be revealed mid-process and if numbers can’t be shared then there’s nothing to share. : )
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2) E-auction will begin at 11 am Sunday.
In the fray: Viacom, Disney-HotStar, Sony, Zee, Times Internet, SuperSport, FunAsia.
Almost all names are familiar. FunAsia is a content aggregation company with firm footing in FM markets.
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3) Auction will begin for Pkgs A & B. Each incremental bid is of Rs 50 lac for these packages (which will later be increased to Rs 1 cr per bid and more, if need be).
Incremental bids for Pkg C will be at Rs 15 lac and for D at Rs 10 lac (both can be increased as required).
When BCCI first announced the sale of IPL media rights, the total reserve price -- from where the bidding will start -- was pegged at Rs 32,890 cr.
That number was based on 74 matches per year for five years.
That was just an average count.
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Potential bidders sought clarifications over that number and asked BCCI to give a more exact idea on the possible number of matches every season for the next five years.
BCCI is planning an expansion of IPL. However 2024 is an election year in India.
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Therefore, until 2024, they cannot increase the number of matches -- at least that's what the Board was advised internally.
So what has the BCCI done for now... It has asked broadcasters to take the following into consideration:
First things first. To set the mood for this thread, I’ll recommend listening to the Jeff Bezos song on YouTube, if you haven’t already. It’s a “masterpiece” 😊 ().
Funnily, I keep thinking, Amazon executives will be warming up listening to this.
(2/25)
Just the reference of #Viacom & #Amazon in the same sentence lays down so many subtexts.
It makes us think of so many battles within battles – Reliance vs Amazon, Mukesh Ambani vs Jeff Bezos, e-retail wars, giant market footprints, Forbes rich list, etc etc etc…