After Star India pipped Sony Pictures Network (SPN) to seal the deal for the next five years for the Indian Premier League (IPL) broadcast media rights, BCCI had entangled in an ugly dispute with the Sony Pictures Network (SPN) over the multi-crore payment deal when Lalit Modi was league’s commissioner.
The Sony management, however, has paid the sum of INR 300 crore while revealing the remaining amount would be paid only after ‘due-diligence’ as a part of final payment procedure.
According to a report published by Times of India, Sony was obliged to pay the whopping amount sum of Rs 425 crore, as Governing Council of IPL had also recorded the matter which further has witnessed BCCI and SPN has had exchanged the emails over the embroiled controversy.
On the other side, Sony was bound to pay INR 115 crore as facilitation fee was made compulsory in 2009 for the broadcast firm, in a bid to fetch the contract for next nine years.
To extend the media rights and which subsequently included an additional payment rose up to the staggering INR 310 for the Multi Screen Media (MSM) back then.
Moreover, the dispute over the payment could strain the relationship between the cricket body and the Sony Corporation.
“The Indian cricket media rights tender is coming up in January and the BCCI knows it better than anyone else that if it considers taking Sony head on, it will be to its own detriment,” business analyst was quoted as saying by ToI.
Pertinently, the broadcasting giant Sony had telecasted the first ten editions of the widely-acclaimed IPL which would now see a brand new firm reaching out to the millions of viewers in the eleventh edition of the IPL which will kick off in 2018.
In September, this year, Star India was declared as the media rights winner between 2018 and 2022 after the whopping bid of INR 16347.50.
However, the ousted broadcast company Sony offered INR 11058 crore as 24 companies were in the fray after the tender was released for the broadcast and digital rights for next five editions.
“As it is, there are only two broadcast players in the sports market,” analyst added.
However, the money under consideration that Sony was bound to pay the amount to BCCI in the second edition of IPL in 2009-10.
The ugly dispute over 125-crore has become a hot debate to talk about in the Indian cricket which has further a potential to overhaul the broadcasting firm.
On the other side, BCCI has asked the Sony to make the payment which further saw the SPN management having a tough stand after failing to negotiate.
VIDEO OF THE DAY:
As many believe the tussle over the payment could be resolved following the mutual understanding, but both the factions are standing firm on its decision respectively, as of now.