The broadcasting rights for the Pakistan Super League (PSL) have been the subject of a competitive and lucrative auction, culminating in a successful bid of 6.3 billion rupees. This figure represents a noteworthy increase of 2 billion rupees compared to the preceding deal, underscoring the substantial interest and value associated with the broadcast rights for the popular cricket league.
In the initial round of bidding, the contenders included a previous rights holder, a state-owned TV channel, and two additional competitors. However, none of the initial bids matched the reserve price set at Rs. 7.358 billion, triggering a second round of bidding. During 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 upcoming two years at a total of Rs. 6.30 billion.
The Pakistan Cricket Board (PCB) has given its approval to this deal, with a notable stipulation that 95% of the proceeds will be directed towards the PSL franchises. This financial allocation implies that the franchises are poised to receive over Rs. 3 billion annually, a significant boost to their financial standing. Additionally, digital rights were separately acquired for a substantial sum of Rs. 1.85 billion, reflecting the growing importance of digital platforms in broadcasting sports content.
It’s noteworthy that the PCB implemented a selective approach in permitting only companies with their own sports channels or those that had acquired rights from another channel to participate in the bidding process. This strategic decision aimed to ensure that entities with expertise and infrastructure in sports broadcasting were the primary contenders.
In the event that the reserve price was not met, the PCB retained the authority to reconsider the bids or even postpone the entire process. However, the successful conclusion of the second round of bidding and the substantial offer made by the winning channel brought about a consensus.
The historical context reveals that the reserve price for the previous broadcasting contract was Rs. 3.7 billion, with the rights eventually being sold for Rs. 4.3 billion for a two-year duration. Intriguingly, the same entity that held the rights previously has once again secured the broadcasting rights, signaling a continued partnership.
The PCB engaged the services of the international company ‘Colganbauer’ to conduct a valuation of the media rights of PSL before the bidding, determining a value of 6 billion rupees, providing a basis for the subsequent auction.
