IPL auctions bids' meteoric rise, reach Rs43,000 crore on Day 1

13 Jun 2022 , 10:09 AM

Bidders had offered more than $5.5 billion (about Rs43,000 crore) for the combined broadcast and digital media rights of one of the world's biggest sports leagues at the end of a stressful and long Sunday of offers and counter-bids. And it was only the first day. The second day will begin tomorrow.

Along with continued bidding for TV and digital rights on the second day (June 13), an auction for rights to 18 matches and worldwide media rights will be held.

The value of TV rights per match reached Rs57 crore on the first day of the media rights auction, and the value of digital rights per match reached Rs48 crore, bringing the total to Rs43,050 crore, up from the base price of Rs30,340 crore for TV and digital rights.
"There is no sustainable business case at these levels," said a media planner who is keeping a close eye on the auction. "It appears that the bidders are willing to take losses in order to maintain market share."

According to Bloomberg, Amazon has pulled out of the bidding war for the IPL's 2023-2027 media rights cycle. The company's $6 billion investment in India was mentioned as the basis for Amazon's decision to withdraw from the competition. According to those familiar with the situation, Amazon's investment in the league's internet streaming rights did not make financial sense.

It's also worth noting that the IPL is commanding a high premium at a time when India's inflation is at an all-time high. Inflation based on the Consumer Price Index (CPI) was 7.8%, the highest rate since May 2014, when it was 8.3%. Inflationary pressures are also placing a strain on broadcasters, such as Zee Entertainment, which reported a drop in ad revenue in Q4FY22.