Asian Cricket Council to Confronts a Rigorous Media Rights Test

The Asian Cricket Council's media rights sale will be put to the test since it will be the first auction since Walt Disney and Reliance Industries got regulatory approval to unite Viacom18 and Star India.

According to the ACC's September 16 tender, the basic price for media rights for the 2024-31 cycle is $170 million, nearly double the $80-90 million paid by Star, the incumbent rights holder, for the 2016-23 cycle, according to persons familiar with the subject. According to industry analysts, continued consolidation and constraints encountered by media organizations may result in reduced bidding.

The media rights will be offered through an e-auction, with a September 30 deadline for purchasing the tender documents. Unlike other cricket products, the TV and internet rights to ACC events will not be sold individually.

The rights package covers men's and women's Asia Cup tournaments, as well as Under-19 and developing team championships. Four editions of the Men's Asia Cup are planned for 2025, 2027, 2029, and 2031. India will host the Asia Cup next year.

The Asia Cup remains the market's final large cricket rights agreement. It will provide insight into the possible future of big cricket properties. Major contenders such as Star India, Viacom18, Sony Pictures Networks India (SPNI), Zee Entertainment, and Dream Sports' FanCode are expected to buy the tender documents.

However, it is unclear how many will make serious offers. Analysts also point out that the Indian Premier League (IPL), International Cricket Council (ICC), and Board of Control for Cricket in India (BCCI) media rights have already consumed a large chunk of the sports rights budget.

These three properties, along with Cricket Australia, Cricket South Africa, the England and Wales Cricket Board, and New Zealand Cricket, have received more than $10 billion in commitments from Star, Viacom18, and SPNI. IPL media rights alone are valued at $6 billion, while ICC rights are worth $3 billion.

According to D and P Advisory, the IPL's value has declined by 11.7% year on year to $9.9 billion in 2024, demonstrating the impact of consolidation on media rights values. According to analysts, an exorbitant base price will dissuade genuine bidders.

"The ACC media rights auction is taking place at a time when the business is changing dramatically. On the one hand, Star-Viacom18, which already owns most of the key cricket rights, may be reluctant to acquire another property," said Rajesh Sethi, senior advisor for media and entertainment at PwC and former CEO of Ten Sports.

"On the other hand, Sony is eager to reestablish its India business following the failed merger with Zee. Meanwhile, Zee is focused on profitability and is unlikely to take a gamble on cricket. "Tech giants are expected to pass up this opportunity once more," Sethi said.

Following provisional permission from the Competition Commission of India, Star and Viacom18 may proceed with caution, wary of potential additional regulatory scrutiny, according to high-level media executives who spoke on the condition of anonymity.

The executives added that SPNI, under new CEO Gaurav Banerjee, is likely to be interested in bidding for ACC rights, providing the price is appropriate. The business barely lost out on BCCI rights to Viacom18 and currently retains rights to England, Sri Lanka, and New Zealand cricket, among others. To ensure profitable growth, it has avoided chasing high-cost sports properties.