Cricket’s High-Stakes Auction: Where’s India’s Back-Up Plan?

The Indian Premier League (IPL) media rights tender has sparked concerns among cricket stakeholders that the Board of Control for Cricket in India (BCCI) may be missing an opportunity to unlock competitive tension and a fair market value for its prized property. Uday Shankar, vice-chairman of JioStar, warned at the ET World Leaders Forum that the absence of credible bidders threatens to stifle growth in the industry.

Cricket’s economic allure is undeniable, with sports like cricket and football drawing massive audiences worldwide. However, monetizing these rights has become increasingly challenging for broadcasters and platforms alike. Shankar noted that “The cost of the rights has risen dramatically, but the ability to monetize those rights hasn’t necessarily risen at the same rate.”

One reason for this disparity lies in the fragmented nature of global media consumption. Traditional sports broadcasting models are no longer tenable, as seen with the rise of streaming services like YouTube and Netflix. These platforms have successfully aggregated and bundled rights, recognizing that sport is not just a standalone commodity but an integral part of their broader ecosystem.

YouTube’s seven-year deal for NFL Sunday Ticket has become a benchmark for the industry. By treating sports as a value-add to its subscription service, YouTube has effectively created a sustainable revenue stream. The same strategy could be applied to the IPL, leveraging India’s massive domestic audience and global diaspora.

Indian cricket remains hesitant to diversify its media rights market, relying heavily on JioStar despite Shankar’s warning that “it feels as if we are the only ones standing.” This lack of diversity threatens to stifle competition and artificially inflate prices. The BCCI’s reluctance to court other bidders may be rooted in an overconfidence in JioStar’s ability to bid competitively.

However, this assumption overlooks the fact that international streaming platforms like YouTube and Netflix have shown a keen interest in exploring the Indian market. Ted Sarandos’ comments on Netflix’s interest in live sport, including cricket, suggest that there may be untapped potential for collaboration between Indian cricket and global media giants.

For any such partnership to succeed, the BCCI must adopt a more proactive marketing strategy, putting the IPL front and center of the international media scene. This would require recognizing the true value of India’s prized assets on the global stage and taking responsibility for marketing them effectively.

Ultimately, India’s media rights market needs a Plan B – or even a Plan C. The lack of credible bidders threatens not only the economic viability of the industry but also its long-term sustainability. Shankar astutely noted that “The economics have to make sense.” It’s time for the BCCI to adapt its approach and court new bidders, engaging with international media platforms and fostering a more collaborative environment.

By doing so, cricket can unlock the full potential of its most valuable asset – the IPL – and reap the rewards of a truly competitive market.