On the eve of the highly anticipated IPL media rights auction, the tech giants’ flirtation with the coveted sports property appears to be over. Amazon, backed by Jeff Bezos, pulled out of the media rights race and Google India also failed to submit its technical bid to the Board of Control for Cricket India (BCCI).
This ends expectations of a mega battle between Amazon and Mukesh Ambani-backed Reliance Group to acquire the media rights to one of the world’s most popular live sporting events.
” Strict rules “
The highly anticipated auction for the 2023-2027 Indian Premier League media rights will take place on June 12. On Friday, companies had to submit their offers to the BCCI. The bids were then technically assessed by BCCI’s legal and financial team. Bidders who have qualified technically have qualified for the bidding round which will take place on Sunday.
According to senior sources, Amazon was initially very interested in obtaining the rights, however, “The (BCCI) rules are very strict, they (BCCI) are not willing to change them, it no longer makes business sense. for us, so we retire from the race. An email sent to Amazon went unanswered.
Google sources said Activity area that the company was never interested in cricket ownership. Google did not even participate in the mock IPL auction organized by the BCCI on Monday. Contrary to several reports, Google was never interested in acquiring the IPL media rights,” they said.
What BCCI could lose
The participation of tech giants, particularly Amazon, was expected to drive up the selling price of these rights, especially for the digital category of rights. BCCI has set the base price for media rights at a combined total of 33,000 crore. Analysts such as Elara Capital have estimated that the sale of these rights will earn cricket bodies around 50,000 to 60,000 crore. The digital rights were expected to fetch the highest premium (100%). Therefore, this development could be a blow for BCCI.
As the auction date nears, the final list of potential high bidders will likely be Reliance-Viacom18, Sony and the historic Disney Star, who can credit IPL media rights as the reason that catapulted the company to market supremacy. market. Sony will also be looking to acquire IPL media rights to give its curated sports portfolio the boost it needs. Prior to the Zee-Sony merger, having IPL on its roster will ensure that the merged entity can emerge as a market leader in media and entertainment.
June 10, 2022