PSL broadcasting rights sold for Rs. 6.3 billion

The broadcasting rights for the Pakistan Super League (PSL) underwent a competitive and lucrative auction, resulting in a successful bid of 6.3 billion rupees. This marked a significant increase of 2 billion rupees from the previous deal, emphasizing the substantial interest and value associated with the broadcast rights for the popular cricket league.

In the initial bidding round, participants included a previous rights holder, a state-owned TV channel, and two additional competitors. However, none of the initial bids met the reserve price set at Rs. 7.358 billion, leading to a second round of bidding. In this phase, the channel with the highest bid from the first round increased its offer by an additional one billion rupees, securing the broadcasting rights for the next two years at a total of Rs. 6.30 billion.

The Pakistan Cricket Board (PCB) has granted approval to this deal, with a notable condition that 95% of the proceeds will go to the PSL franchises. This financial distribution implies an annual boost of over Rs. 3 billion for the franchises, significantly enhancing their financial position. Additionally, digital rights were separately acquired for a substantial sum of Rs. 1.85 billion, highlighting the growing importance of digital platforms in sports content broadcasting.

It’s noteworthy that the PCB adopted a selective approach, allowing only companies with their own sports channels or those with rights from another channel to participate in the bidding. This strategic decision aimed to ensure that entities with expertise and infrastructure in sports broadcasting were the primary contenders.

In the event the reserve price wasn’t met, the PCB retained the authority to reconsider the bids or postpone the entire process. However, the successful conclusion of the second round of bidding and the substantial offer by the winning channel brought about a consensus.

Historically, the reserve price for the previous broadcasting contract was Rs. 3.7 billion, and the rights were eventually sold for Rs. 4.3 billion for a two-year duration. Interestingly, the same entity that previously held the rights has once again secured the broadcasting rights, indicating a continued partnership.

To conduct a valuation of the media rights of PSL before the bidding, the PCB enlisted the services of the international company ‘Colganbauer,’ determining a value of 6 billion rupees, providing a basis for the subsequent auction.

Leave a Reply

Your email address will not be published.