IPL media rights delay impacts ICC's valuation strategy: Report
What's the story
The Board of Control for Cricket in India (BCCI) is yet to decide on the IPL media rights tender, as per Times of India. This comes as the International Cricket Council (ICC) has already formed a five-member working group to explore price-discovery models for its own media rights cycle from 2028-2031. The ICC's move isn't surprising, given that they want to keep or even increase their current value during this period.
Strategic pause
BCCI yet to issue IPL media rights tender
BCCI's delay is also hindering the process for other global properties, including the ICC.
The Indian cricket board is yet to decide on hiring a financial agency to determine suitable price-discovery models.
This is similar to what they did during the last rights cycle when they hired KPMG as a financial advisory firm for drafting the IPL tender document.
Financial advisory
KPMG was hired to draft IPL tender document
In 2022, KPMG was hired by the BCCI to draft the IPL tender document.
The document included a special non-exclusive digital-rights package for selling a select "bouquet" of high-value matches in the Indian subcontinent.
This package alone fetched ₹3,273 crore at ₹33.24 crore per game, making internet rights more lucrative than traditional TV rights for BCCI from the subcontinent for the first time ever.
Revenue potential
Potential benefits for BCCI in exploring revenue patterns and models
Industry executives strongly believe that if the BCCI explores these changing revenue patterns and models for IPL, it can be hugely beneficial.
They cite the YouTube sports-bundling model in the US as an example.
The executives also emphasize on building a separate non-live consumer base to monetize premium properties selectively, which could be another potential revenue stream for BCCI beyond live match feeds.
Upcoming discussions
BCCI AGM to discuss monetization strategies beyond live match feeds
BCCI members are set to meet in Mumbai for their Annual General Meeting (AGM) starting Friday.
The upcoming sale of media rights is expected to be a major topic of discussion among the members.
An industry executive said, "India has a strong cricket platform. The IPL is already a premium property on that platform."
They also stressed the need for effective monetization strategies beyond live match feeds such as archives, highlights, documentaries, and regional storytelling.