Inside IPL’s Blockbuster Media Rights Auction

The IPL's blockbuster media rights auction was sold for Rs 48,390.5 crore for the next five years, making the league among the wealthiest in the world of sports. 

On an overall basis, BCCI will now earn approximately Rs 118.0 crore per live IPL match. IPL has become second to the NFL, and ahead of the hugely popular football/soccer leagues of Europe and the likes of NBA, MLB, etc., in terms of the live per match earnings from broadcasting rights. 

Understanding the numbers game  

Disney Star retained the TV rights in the subcontinent for Rs 23,575 crore, while Viacom 18 secured the digital rights in the same region and media rights (both TV and digital) across three global regions – Australia + New Zealand, the UK and South Africa for Rs 23,758 crore.  

Media rights for two other global regions – the Middle East (Rs 205 crore) and the USA (Rs 258 crore), was bagged by Times Internet. 

The overall deal for the 2023-27 cycle is 2.96 times or 196 per cent higher than the previous IPL rights deal (2018-22) of Rs 16,347.5 crore. 

If we look at the previous cycle, it comprised 60 matches per season for five years. For the new five-year cycle, the IPL has listed a varying number of matches per season ranging from 74 games each in 2023 and '24, 84 matches each in 2025 and '26, and a maximum of 94 matches for the final year of the deal in 2027. 

For IPL teams, media rights are the bread and butter as they account for 69-75 per cent of revenue. Other sources of revenue include sponsorship deals and several tournament-linked incomes. 

Going by BCCI’s earlier statement on revenue sharing from the broadcasting rights, franchises have a right to 40 per cent of the revenues, with the rest staying with the Board.  

Each IPL team is likely to earn almost Rs 400 crore a year solely from the media rights, a 137.5 per cent jump from Rs 163 crore a year. Further, the teams finishing among the top four in every edition will get another 10 per cent share of the media rights sales. Players will also stand to gain from the additional revenue inflow to teams. Auction purse will increase in the future and the players will earn more. 

"IPL’s growth story and its phenomenal rise in the sporting world is a result of people’s immense faith and belief in the BCCI leadership and its workforce to keep on delivering under all adversities. I am sure with the constant support of everyone in the eco-system we will be able to take brand IPL to new heights on the global sports stage”, said BCCI President, Sourav Ganguly. 

Rise of digital valuation 

It was the digital pack that drove the rights this time around. In this rights cycle, digital rights have exceeded the value of TV and have been the biggest driver of growth in the value of the IPL rights.  

The highest bid for the TV rights in the subcontinent was 17.3 per cent higher than the per-match base price of Rs 49 crore. The corresponding number for digital rights in the region saw a massive jump of 51.5 per cent higher than the per-match base price of Rs 33 crore. 

It is important to note that this time, advertisers will have an option of advertising on either or both the platforms. According to experts, this can be Voot’s (Viacom’s OTT platform) hot-star moment. Just like how IPL 2017 rights changed the dynamics for Hotstar, this can change the fortune for Voot. Experts are already saying that Disney+Hotsar could lose 15 mn to 25 mn subscribers on losing the IPL Digital Rights. 

Speaking about the recently concluded IPL Media Rights, BCCI Honorary Secretary, Jay Shah said, “I express my gratitude to the market forces for believing in the brand and showing their faith and confidence in BCCI to take IPL to newer heights. I am sure, together, we will keep adding value to brand IPL and make it the biggest sporting league in the world in terms of revenue, participation and performance.” 

“The whole idea is to balance cricket and commercial interests as BCCI is committed to developing sports in the country through cricket. The money we generate through media rights will ultimately benefit grassroots cricket in India and that is what ultimately matters", he added. 

“Sports entertain us, inspire us and bring us together. Cricket and IPL personify the best of sport and the best of India, which is why we are proud to be deepening our association with this great game and this wonderful league. Just like with everything we do, our mission is to take the joyful experience of IPL to cricket fans wherever they are – in every part of our country and around the world,” said Nita Ambani, Director, Reliance Industries. 

Media Rights Holders: IPL 2023-27

TV ( Indian Subcontinent)-DISNEY STAR 

DIGITAL (Indian Subcontinent) & Digital Special Bouquet (India) -VIACOM 18 

TV + Digital (Rest of The World)--Times Internet (MENA, US), VIACOM 18 (AUS-NZ, SA, UK) 

Breakdown- IPL Media Rights 2023-27 

TV Rights For Indian Sub-continent: Rs 23,575 crore 

Digital Rights For Indian Sub-continent: Rs 20, 500 crore 

Digital Rights, Special Bouquet (India Only): Rs 3,257.5 crore 

TV/Digital Rights (Rest of the World): Rs 1,058 crore