ICC makes multiple changes to sale of media rights process after pressure from broadcasters
ICC makes multiple changes to sale of media rights process after pressure from broadcasters
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The International Cricket Council (ICC) has decided to make some changes to the sale of the media rights process for the India market after caving in to pressure from broadcasters.
According to a report on The Times of India, the ICC could end up revealing bidding figures in the presence of participants at an event in Dubai on Friday, 26 August, besides conditions that could lead to an e-auction.
The tender process could enter an e-auction in the second round if the top two bids are within 10 per cent of one another.
“Considering now they have to share if the difference between the winning bid and the second-highest bid is less than 10 per cent for Round Two to go ahead, they will now have to announce all the bid numbers on 26th itself in front of broadcasters,” said a source in the TOI report.
The development comes after the said broadcasters — Viacom18, Disney, Sony and Zee — refused to attend ICC's proposed mock auctions citing "opaqueness" of the tender process to which they demanded more clarity.
It also revealed the 'Benchmark Price' for the four as well as the eight-year cycles along with the multiplier that could help the ICC decide which cycle to go with.
According to the report, the benchmark price for the four-year cycle has been set at US$1.44 billion, while the same for the eight-year cycle has been calculated with the '2.8 multiplier formula' — which amounts to US$4 billion.
"The multiplier that will be used to determine whether IBC (the commercial arm of the ICC) will consider bids on a 4-year or 8-year basis will be 2.8. If the 8 year bid/combination bids meet or exceeds 2.8 times the highest 4 year bid/combination bid, IBC will be considering the 8 year bids," a source was quoted as saying according to Cricbuzz.
The reports state that the broadcasters will have to submit technical bids by Monday, 22 August followed by their final bids no later than 26 August.
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