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ICC relents to broadcaster pressure on ‘media rights’ opaqueness, brings some clarity to tender process | Cricket News


MUMBAI: Relenting to the acute pressure from the 4 broadcasters after they refused to attend the mock auctions – a workshop to perceive technicalities – this week, the International Cricket Council (ICC), late Friday night, lastly determined to minimize down on the “opaqueness” of the tender process on the market of media rights.
The ICC has now determined to do the next:
A) The base worth (ICC has used the time period ‘benchmark’ worth) 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 components’ will probably be utilized to the eight-year cycle, which implies the bottom worth for the eight-year cycle will probably be calculated at US$1.44b (base for 4 years) multiplied by 2.8, which works out to round US$4b.
C) The ICC may also verify the way it will decide if Round Two is important. Should the distinction between the profitable bid and the second-highest bid be lower than 10%, an e-auction will probably be referred to as for.
The ICC is looking the ‘base worth’ because the ‘benchmark worth’ as a result of it isn’t mandatory that broadcasters can not bid under the stipulated quantity. Broadcasters, it’s additional discovered, should not actually satisfied with the multiplier components both, however don’t thoughts “some bit of clarity”.
TOI had defined the metrics and the calculation of those base costs right 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 – 4 of the six broadcasters who had picked up the tender doc when the ICC had introduced it out – had been crying hoarse in regards to the process put in place to perform the sale of rights till now.
Factors like A) not placing out a reserve worth, B) not specifying the multipliers for the eight-year bid, C) not explaining how the ICC will determine to conduct Round Two – an e-auction – if Round One (closed bid) is deemed unsatisfactory, D) Not asserting the bid numbers in entrance of the broadcasters had compelled the broadcasters to always remind the ICC that they might “stay away from the auctions altogether”.
It couldn’t be confirmed if the ICC has agreed to announce the bid numbers offered by the broadcasters as quickly because the envelopes are opened, within the presence of the representatives from bidding firms.
“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 these monitoring developments.
The ICC has requested for technical bids to be submitted on August 22 and closed bids to be submitted on August 26. The governing physique had mentioned that if the closed bids have been “unsatisfactory” – with out explaining the phrases of ‘satisfaction – an e-auction can be referred to as in Round Two.
Here is a FAQ on the problems 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 ship an official e-mail to broadcasters on the identical on Saturday morning.

Source: timesofindia.indiatimes.com

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