SLC's failed TV Rights show open doors to Sony
As the deadline to submit fresh Expression of Interests (EOIs) for Sri Lanka Cricket’s ( SLC) media rights for the 2020- 2023 ends today, Sony who pulled out from the bidding citing lack of transparency, is likely to enter the fray this time after SLC combined broadcasting rights - TV/Radio and Digital.
SLC had no option but to 're-tender' after it failed to attract a satisfactory bid following the withdrawal of a number of main players including Sony and Star.
"We remain committed to participate in a re-bidding process, should the SLC undertake to address our genuine concerns, inter alia, regarding the bifurcation of rights," wrote Mr. Rajesh Kaul, Head Sports Chief Revenue Officer-Distribution, Sony Pictures Networks (SPN) India Private Ltd.
"We are certain and strongly believe that a combined bid will bring in synergy not only from an exploitation and monetization perspective for SPN, but also for SLC in terms of values."
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. This is the first time SLC floated digital rights separately.
This decision seems to have cost the board dearly. Apart from the lack of transparency another concern of Sony Pictures is the separation of digital rights from TV/ Radio broadcasting rights.
The bifurcation of rights - TV/Radio and Digital Rights - resulted in SLC receiving below par offers with the highest bid for TV/Radio rights of US$ 16 million and digital rights fetching only US$ 6 million.
"Additionally, considering SPN is your incumbent partner and an international brand in the sporting arena, continuing the existing partnership will be nothing but mutually beneficial to both parties and shall create better value for sponsors and SLC as well," Mr Kaul wrote.
Unlike in previous instances, SLC this time sought assistance from their parent body - the ICC for the sale of international media rights. SLC key officials including President and CEO visited, ICC headquarters few times to discuss with top officials and industry expects in order to strategize and determine the methodology which SLC ought to adopt for the media rights tender which ensures the transparency in the process and maximize the revenue generation for SLC.
ICC not only advised SLC on assisting in preparing the EOI, REP and bid documents and assisting the evaluation bids, for which two officials including ICC’s Head of AntiCorruption Alex Marshall was present.
This was to ensure high level of integrity and transparency of the process which Sony in their letter to SLC accused SLC of not maintaining.
"Unless SLC had amended its responses to reflect the transparency in the bidding process that you have touted and addressed, the glaring concerns that we had raised, SLC’s response to our queries confirm gaping holes in the entire bidding process," Sony Pictures wrote to SLC in a letter dated February 20.
"Further, it has come to our attention that SLC has selectively invited the potential bidders to the opening of the bids while no such invitation is extended to us, the incumbent media rights holders of SLC. This underlines the opaqueness of the bidding process undertaken by SLC," the letter further stated.
Sony’s existing contract with SLC will end on March 31, 2020.