2nd April 2012, 10:10 AM
Star bags TV rights for Indian cricket
Star TV, owned by Rupert Murdoch, has won the rights to broadcast Indian cricket for 2012-2018. The deal was valued at Rs 3851 crores (approximately $750 million) for 96 matches. The other bidder was Sony, which currently owns the rights to the IPL. Star TV also won the digital media rights.
The board was forced to issue a new tender after it terminated its contract with Nimbus in December 2011, claiming the latter had defaulted on its payments. The matter has subsequently been referred for arbitration, with the Bombay High Court ruling that Nimbus must deposit Rs 305 crores (approx US$60 million) with the court as security for the amount the BCCI claims it is owed by the company. Nimbus has also made a counter-claim of Rs 600 crores (approx US$118 million) from the board.
The BCCI's marketing committee set the price for category A games at Rs 31.25 crores per match (approx $6.1 million) plus Rs 1 crore (approx $0.2 million) while category B games were set at Rs 34 crores (approx $6.67 million) plus Rs 1 crore. The contract with Nimbus had a base price of Rs 31.25 crores (approx $6.1 million) per game for each of the three formats purely for the broadcast rights.
The board did attempt to sell the internet rights separately last year, but the tender found no takers at the initial base price of Rs 3 crores (approx $0.6 million) or its subsequently reduced price of Rs 2 crores (approx $0.4 million).
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