The study suggests that a lack of competitive bidding for the next IPL media rights cycle could result in a more conservative approach in light of the merger between Star India and Viacom18 and the delay in entry of tech giants in the IPL media rights bidding arena.
Santosh N, managing partner of D and P Advisory, said he anticipates demand-side constraints in the next media rights cycle auction since two of the biggest buyers of sports content have merged and the delay in the entry of tech giants Amazon, Meta, and Apple in the IPL media rights arena.
Apart from the demand-side constraints, he added that the failed merger between Sony and Zee has also contributed to the downward revision in IPL’s valuation. The Sony-Zee merger could have created a strong competitor to the Star-Viacom18 combined entity.
Star India and Viacom18 purchased the IPL media rights for ₹48,390 crore from 2023-27, an increase from the ₹16,347 crore they paid for the 2018-22 cycle. Apart from Star and Viacom 18, Sony and Zee were the other bidders for the IPL media rights auction held in June 2022. The merger between Reliance Industries-owned Viacom18 and Walt Disney-owned Star India will create a monopoly in sports broadcasting, with the combined entity having all the major cricket rights, including the IPL, the International Cricket Council (ICC), and the Board of Control for Cricket in India (BCCI).
Recently, Board of Control for Cricket in India (BCCI) secretary Jay Shah had sounded confident that new players will bid for the next cycle of the IPL media rights notwithstanding the Star-Viacom18 merger.”My job is to ensure the growth of the game and increase the brand value of Indian cricket. As it happens, the broadcasters come automatically,” he had told ET.As per the report, Mumbai Indians is the most valued IPL franchise in 2024, followed by Chennai Super Kings, Kolkata Knight Riders, Royal Challengers Bangalore, Delhi Capitals, Gujarat Titans, Sunrisers Hyderabad, Lucknow Super Giants, Rajasthan Royals, and Punjab Super Kings.
