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Star India Pays 82 Crores To Maharashtra Government
Image Courtesy: Twitter

Star India Pays 82 Crores to Maharashtra Government

The deal between Star India and BCCI seems to have benefitted the Maharashtra State Government, as Star had to pay nearly 82 crores to the state government.

An official of the department of stamps and registration claimed the Maharashtra government profited 82 crores form the recent media rights deals for IPL between and BCCI and Star India. They piped Sony Entertainment who held the rights for the past ten years.

Star India Pays 82 Crores to Maharashtra Government 1
Image Courtesy: Twitter

Star India won the rights for a whopping Rs 16,437 crores to broadcast IPL for the next five years. Star India had to pay 83 crores as Stamp duty to the Maharashtra Government. As per the Act, any such event which exceeds Rs 10 Lakhs has a stamp duty of 0.5 percent. The Stamp and registration department approached the BCCI after reading about the deal through print and TV media and took up the matter with the officials. An official from office said,

“After coming to know from print and TV media about the contract, we took up the matter with the Board of Control for Cricket in India (BCCI), with whom Star India signed the contract, as per the Act, the contract agreement covering exclusive rights of telecasting, broadcasting or exhibition of an event or a film attracts stamp duty of 0.5 percent of the amount agreed to in the contract, if the agreement amount exceeds Rs 10 lakh,”

The official also thanked the head of Committee of Administrator (CoA), Vinod Rai for helping them in a speedy recovery of the amount from the party, as he said,

“The positive approach of Vinod Rai, head of the Supreme Court-appointed Committee of Administrators of BCCI, helped in the speedy recovery of the amount.”

Star India paid a stamp duty of Rs 81, 73, 75,500 to the Maharashtra Government. The Official added,

“Till last year, it was observed that parties which entered into contracts with BCCI were not keen to pay the stamp duty amount. As a result, the state government lost a big amount which could have come into its kitty, This year the authorities decided to be proactive and sent teams to BCCI and concerned firms in a bid to garner the stamp duty,”

A few months ago the department also received 5.39 crores as a result of a deal between Oppo electronics and BCCI. He said,

“The stamp duty on the agreement came to Rs 5.39 crore, which was 0.5 percent of the total amount and was paid by Oppo.” 

Facebook bid $610 million for the Rights to Stream IPL, Narrowly Loses out to Fox Star India

After Sony Pictures Network lost to Star India in their bid to telecast IPL from the next year, Facebook is now willing to pay a lot of money for broadcasting sporting events. It is very much evident from the fact that the company had bid for $610 million for the rights to stream games of the Indian Premier League, which is considered as the biggest T20 league across the globe for the next five years.

The Indian Premier League announced that the 21st Century Fox’s Star India had won the exclusive rights to stream IPL after a $2.5 billion bid on Monday defeating Facebook who was ranked 2nd in the bidding process. A spokesperson from Facebook didn’t give an immediate response to a comment.

Despite Facebook not winning the streaming rights, their bids have shown how willing they are to pay for the sports especially after Facebook has its new watch hub for life, scripted and episodic video.

CEO of Facebook, Mark Zuckerberg said that the company would try licensing sports games with the aim of “creating some anchor content” that helps people think of Facebook as a destination for premium videos.

Facebook eventually intends at moving all of its shows and content deals to an ad revenue sharing model, but as of now, it is clearly comfortable spending money up front. They might well go on to the extent of even hundreds of millions of dollars to secure the internet streaming rights of the mega event.

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Star India Have to Double the Ad Rates to Make IPL a Profitable Venture

The Sony Pictures Networks India has been hugely affected by the loss of their media rights for the highly profitable Indian Premier League as the company was extremely dependant on the month and a half long tournament for its profits.

Sony who has been the broadcasting partner of IPL for the last decade has earned around Rs. 1,3000 crores in 2017 while in the previous edition they had a total profit of Rs 1,100 crores from advertising.

The Star Sports Network has paid Rs. 8,200 crores in 2008 for the media rights of IPL for a decade and its India’s head of network has confirmed time and again, that IPL is the most profitable property. While the average rate for an advertisement during an IPL match ranges from Rs 5-6 lakhs, the Star Sports Network confirmed that the inventory sold in the region was Rs. 25 lakh for a 10-minute ad.

The inventory of an advertisement is around 2,300 seconds in an IPL match, and Sony manages to pre sell over 30 of its inventories. The remaining were sold at huge premiums. It won’t be wrong to term IPL as the most established risk-free media property at the moment.

However, the question which has been raised is whether it will continue to be a risk-free property with Star India grabbing the media rights for a staggering Rs. 16,348 crores more than double of what Sony had paid for the media rights in the last ten years.

To make it a profitable property, Star India has to make profits in the region of 20%. Star India would have to spend around Rs. 55 crores for a match which would also signify that they have to double the ad rates.

The loss of IPL media rights will be a huge setback for the Sony Pictures Network but it won’t be the end of the game as Star India’s rights of BCCI matches is ending this year, and the Sony Network will take every possible measure to ensure to take the Team India media rights.

Lalit Modi. Image Courtesy: Getty Images
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Lalit Modi Disappointed with the Value of IPL’s Media Rights

Indian Premier League (IPL) has been a revolution in the cricket. It’s been ten years since IPL’s inception, and it has completely changed the way cricket is played.

Star India bagged the IPL media rights for the next five years for a whopping Rs. 16,347.50 crore on Monday. IPL started in 2008 under the chairmanship of Lalit Modi. The IPL was Lalit Modi’s brainchild. He made IPL a cash-rich and glittery extravaganza it is right now.

Start India piped 23 other companies in a bidding-war in Mumbai to bag the media rights for a five year period from 2018 till 2022. It was estimated that the rights would fetch over Rs 20,000 crore through the traditional bidding process. Star India managed to get the rights for Rs. 16,347.50 crore which has got some eyes rolling. This value has drawn a lot of attention in the Indian media as well.

The bidding process was divided into two parts, Broadcast and Digital. Digital includes the internet and mobile rights. However, this value hasn’t impressed Lalit Modi, as he feels the value should have been much higher because of IPL’s huge success in the ten years of its existence. Lalit Modi was expelled from the IPL in 2010 because he was accused of rigging bids and money laundering.

Still, Modi has never backed out from expressing his feeling in the public through social media, whether its favour of the BCCI or against them. On early Monday morning, Modi Tweeted

“Looking forward to seeing a number greater or equal to 5 billion US Dollars for @ipl rights over the next five years. Most valuable sports right”

Modi has been removed from all the posts under BCCI and was also barred from electing in the Rajasthan Cricket Association elections.  He expressed disappointment by Tweeting,

So #StarSports wins global rights for @IPL I would’ve hoped a larger figure Deserved greater value after 10yrs of success #IPLMediaRights.”

 

 

               

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Twitter Reacts on Star India’s Record Bid to Get IPL Rights

Star India has managed to win the race for the IPL media rights for a whopping 16,347.5 Crore INR.

The bid can be considered as one of the biggest sporting deals in history and which could potentially see Star India becoming the most dominant sports Network in the subcontinent.

Sony Pictures Network which previously held the TV rights of IPL for the first ten seasons had failed to match the massive bid made by Star on the day. It will be a huge blow for SPN going forward especially it is the single most important sports event in its broadcasting.

Ever since the news broke out over the new media rights deal, Twitterati was quick to react to the situation. Star India already hold rights for some of the biggest events which include English Premier League, Indian Super League, Pro Kabaddi, all Indian home series and also ICC events.

The deal could be the defining moment for the company as they look to become the most dominant sports Network. Here we look at how Twitter reacted to the new IPL deal.

 

https://twitter.com/imsharmarahul/status/904619140262096897

 

https://www.twitter.com/manishkmrdbi/status/904630410369478657

Despite all the positives and negatives, BCCI once again proved to be the winner at the end of the day, as they sold off the media rights to a record amount. The deal would mint more money to BCCI as well as Star India, but it remains to be seen how Star plans to get profit from after paying for such a colossal deal.

Star India Bags IPL Rights for a Whopping 16,347 Crores

Indian Premier League has been one of the biggest sporting events in the world ever since its inception in 2008. The tournament has garnered attention from all across the world, as it was one of a kind. The stakeholders have all had profits in the past decade.

Sony Pictures Network (SPN) had the IPL rights for the first ten seasons when they bid 8200 Crores to BCCI back in 2008. However, the tender process for the next cycle had begun since the rights were expired at the end of last season. SPN and Star India were considered as the favourites with both the parties desperate to bag the media rights auction for the next five years.

However, it was Star India who managed to pip their counterparts with a mountainous 16347.50 Crore bid for both TV and digital rights for next five seasons (2018-2022).

As many as 24 companies had accepted the invitation from BCCI to bid for the digital and TV rights of IPL both in India and across the world. However, the likes of ESPN Digital Media, Discovery, Gulf DTH, Sky Uk Ltd, Amazon, Media India, BTG Legal Services, Taj TV, BT PLC, Twitter, Group M have not submitted any bids despite accepting the invitation.

India is considered as one of the biggest consumer markets in the world, and this is playing a huge part in making money for BCCI. IPL being one of the most celebrated events in the country, advertisers are looking to make the most of the ad space which is paying dividends to the broadcasting channels.

Earlier Vivo also renewed their deal to be title sponsors, as they increased their bid by almost 500% to be part of IPL for the coming years. The digital and TV rights were sold to different networks last time but BCCI’s decision to sell both rights to a single company has paid riches to the board this time around.