Blow for SLC
Sri Lanka Cricket ( SLC) has suffered a major blow as Sony Pictures Networks, its longstanding media rights holder, has pulled out from the bid to earn rights for the next three- year cycle. This has left the board few options to choose from.
The sale of broadcast rights contributes significantly to the board's coffers. SLC will now, in all probability, be forced to go to the market once more, seeking a competitive bid for the cycle that starts in April this year. Sony signed a seven- year deal in 2013 and had initially shown interest. Along with two other entities, it had paid the non- refundable deposit and signed the NonDisclosure Agreement to own both broadcast rights (television, radio and digital). But it had pulled out, just days ahead of this Thursday's bids acceptance.
It remains unclear whether Sony's exit is connected with the Sri Lanka national team's dwindling international fortunes. In a letter, the media giant had expressed reservations about the transparency of the bid selection process, sources close to SLC said.
Bids were acce pted on February 20. While they were to be opened at 3pm on the same day, the board postponed it to Friday one hour after the deadline closed. This was because SLC top management had to present themselves before the Committee on Public Enterprises ( COPE) in parliament that afternoon.
The bids were opened on Friday morning in the presence of Alex Marshall, ICC’s Head of Anti- Corruption Unit, but no information is available on the amounts quoted by the bidders who applied separately for TV and radio broadcast rights, digital rights and production rights.
Sources said they had received two bids each for TV and radio broadcast rights and digital rights while three entities submitted bids for production rights. Technical and financial evaluations will be done on Monday after a representative from the Sports Minister failed to attend the bid- opening as it was a government holiday, the SLC said.
Sony's exit left just two bidders. Lax Sportel Vision Pvt Ltd ( which runs the pay television channel 1Sport in other Indian subcontinent territories), Lex Entertainment and Media Pvt Ltd are in the running for media rights. These two are both registered at the same address: D- 583, Basement, Chittaranjan Park, New Delhi, South Delhi DL 110019 IN.
Lax Sportel Vision is a small player compared with Star or Sony. Its portfolio includes Indian I- League football, minor cricket tournaments, golf, mixed martial arts and minor wrestling.
According to reports, Lex Sport Vision ran DSport in partnership with international media group Discovery until recently. It fell apart and a legal dispute is underway over control of the DSport brand and channel assets. This could force SLC to rethink its options: whether to go ahead with the process already begun or call a fresh tender.
Unlike in previous years, SLC floated three separate tenders for TV and radio broadcast rights, TV production rights and digital broadcast rights spanning the next three years in view of its partnership with Sony ( formerly Ten Sports) ending on March 31 this year. In 2013, digital rights were not offered separately. There is speculation that this may also have influenced Sony's decisions.
Broadcast rights are one of the main sources of SLC income. It had hoped to generate more funds by going to the market separately. It might have backfired.
Television giant Star India Pvt Ltd - who owns the rights of the world’s biggest franchise tournament IPL - was among 22 firms that expressed initial interest in buying TV, radio and digital rights. It later withdrew from the contest. This left Sony Pictures, Lex Entertainment and Media Pvt Ltd and Lex Sportel Vision Pvt Ltd running for the TV and radio broadcast rights. Sony along with Fancode-Sporta Technologies Pvt Ltd and Lex Sportel Vision Pvt Ltd and ITW Consulting Pvt Ltd bid for digital rights. For production rights, ITW Consulting Private Ltd, I MG Re l i a n c e L i m i t e d , Sportsworkz Pvt limited, Real Impact Pvt Limited and the IGP Group paid the non- refundable deposit but only three of them submitted bids.
The new rights cycle begins in April and the first major fixtures are the tours of Sri Lanka by South Africa, India and Bangladesh between May and August. SLC's international media rights have historically been acquired by Indian broadcasters, with that market accounting for most of their value.