MUMBAI: Relenting to the extreme pressure from the four broadcasters after they refused to attend the mock auctions – a workshop to understand technicalities – this week, the International Cricket Council (ICC), late Friday evening, finally decided to cut down on the “opaqueness” of the tender process for sale of media rights.
The ICC has now decided to do the following:
A) The base price (ICC has used the term ‘benchmark’ price) for the four-year rights cycle for all ICC matches in India is now being pegged at US$1.44b.
B) The ICC is about to convey to broadcasters that a ‘2.8 multiplier formula’ will be applied to the eight-year cycle, which means the base price for the eight-year cycle will be calculated at US$1.44b (base for four years) multiplied by 2.8, which works out to around US$4b.
C) The ICC will also confirm how it will determine if Round Two is necessary. Should the difference between the winning bid and the second-highest bid be less than 10%, an e-auction will be called for.
The ICC is calling the ‘base price’ as the ‘benchmark price’ because it’s not necessary that broadcasters cannot bid below the stipulated number. Broadcasters, it is further learned, are not really convinced with the multiplier formula either, but do not mind “some bit of clarity”.
TOI had explained the metrics and the calculation of these base prices here: Exclusive – Base price for ICC media rights for India can work out to approx $1.5b for four-year, $4b for eight years
Viacom, Disney, Sony and Zee – four of the six broadcasters who had picked up the tender document when the ICC had brought it out – had been crying hoarse about the process put in place to carry out the sale of rights until now.
Factors like A) not putting out a reserve price, B) not specifying the multipliers for the eight-year bid, C) not explaining how the ICC will decide to conduct Round Two – an e-auction – if Round One (closed bid) is deemed unsatisfactory, D) Not announcing the bid numbers in front of the broadcasters had forced the broadcasters to constantly remind the ICC that they could “stay away from the auctions altogether”.
It could not be confirmed if the ICC has agreed to announce the bid numbers presented by the broadcasters as soon as the envelopes are opened, in the presence of the representatives from bidding companies.
“Considering now they (ICC) have to share if the difference between the winning bid and the second-highest bid is less than 10% for Round Two to go ahead, they will now have to announce all the bid numbers on 26th itself in front of the broadcasters,” say those tracking developments.
The ICC has asked for technical bids to be submitted on August 22 and closed bids to be submitted on August 26. The governing body had said that if the closed bids were “unsatisfactory” – without explaining the terms of ‘satisfaction – an e-auction would be called in Round Two.
Here is a FAQ on the issues that broadcasters had raised on the bidding process: ICC media rights tender explained – FAQ on what’s happening, what’s not and the clamour around it all
The ICC will send an official email to broadcasters on the same on Saturday morning.
The ICC has now decided to do the following:
A) The base price (ICC has used the term ‘benchmark’ price) for the four-year rights cycle for all ICC matches in India is now being pegged at US$1.44b.
B) The ICC is about to convey to broadcasters that a ‘2.8 multiplier formula’ will be applied to the eight-year cycle, which means the base price for the eight-year cycle will be calculated at US$1.44b (base for four years) multiplied by 2.8, which works out to around US$4b.
C) The ICC will also confirm how it will determine if Round Two is necessary. Should the difference between the winning bid and the second-highest bid be less than 10%, an e-auction will be called for.
The ICC is calling the ‘base price’ as the ‘benchmark price’ because it’s not necessary that broadcasters cannot bid below the stipulated number. Broadcasters, it is further learned, are not really convinced with the multiplier formula either, but do not mind “some bit of clarity”.
TOI had explained the metrics and the calculation of these base prices here: Exclusive – Base price for ICC media rights for India can work out to approx $1.5b for four-year, $4b for eight years
Viacom, Disney, Sony and Zee – four of the six broadcasters who had picked up the tender document when the ICC had brought it out – had been crying hoarse about the process put in place to carry out the sale of rights until now.
Factors like A) not putting out a reserve price, B) not specifying the multipliers for the eight-year bid, C) not explaining how the ICC will decide to conduct Round Two – an e-auction – if Round One (closed bid) is deemed unsatisfactory, D) Not announcing the bid numbers in front of the broadcasters had forced the broadcasters to constantly remind the ICC that they could “stay away from the auctions altogether”.
It could not be confirmed if the ICC has agreed to announce the bid numbers presented by the broadcasters as soon as the envelopes are opened, in the presence of the representatives from bidding companies.
“Considering now they (ICC) have to share if the difference between the winning bid and the second-highest bid is less than 10% for Round Two to go ahead, they will now have to announce all the bid numbers on 26th itself in front of the broadcasters,” say those tracking developments.
The ICC has asked for technical bids to be submitted on August 22 and closed bids to be submitted on August 26. The governing body had said that if the closed bids were “unsatisfactory” – without explaining the terms of ‘satisfaction – an e-auction would be called in Round Two.
Here is a FAQ on the issues that broadcasters had raised on the bidding process: ICC media rights tender explained – FAQ on what’s happening, what’s not and the clamour around it all
The ICC will send an official email to broadcasters on the same on Saturday morning.
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