Amazon prime video, dream 11 google, and Disney star are all vying for IPL 2023-2027 media rights. For the past couple of weeks, the broadcast rights auction of the Indian premier Ligue (IPL) is a high auction drama that’s about to unfold. The questions arise in everyone’s mind that is: will a cost of Rs 100 crore or more per match be tenable for broadcasters? Or, will this end up as a classic case of the winning bidder driving up the media property in an attempt to secure IPL 2023-2027 rights? Will the winning bidder even recoup its investment?
From 2018 to 2022, star India acquired the IPL media rights at Rs 16,348 crore. The board of control for cricket in India has set the new base price at Rs 32,890 crore for the period of 2023-2027. After, the national football Ligue (NFL), English premiere Ligue (EPL), and major league baseball (MLB), the IPL media rights are the fourth highest, globally. Santosh N, managing partner, D and P Advisory (an international market advisory that studies IPL’s brand valuation said “as per our analysis, the final price could settle around Rs 100 crore per match.
BCCI president, Sourav Ganguly estimated that the board could fetch upwards of Rs 40,000 crore from the sale of IPL media right After the BCCI raised Rs 12,725 crore from the sale of two new teams in 2021. A10- second IPL 2022 advertise spot cost brands about Rs 14 lakh on an average, up from Rs 10 lakh in 2018. The question is, will the advertiser be willing to pay double the current rate for an a10-second spot. Jehil Thakkar, partner, Deloitte India said a 10-15 percent hike over the previous season’s advertising rates, could be palatable to the advertisers.
Brands belonging to established categories like FMCG and smartphones brands, are already sitting out and giving IPL a miss. “brans who have reputation among customers, are not receiving the kind of returns that justify crores of expenditure over a property like IPL” said the marketing head.
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