Asia Cup: Asian Cricket Council faces a tough media rights test

According to the tender released by the ACC on September 16, the base price for the media rights for the 2024-31 cycle is $170 million, which is almost double of the $80-90 million that Star, the incumbent rights holder paid for the 2016-23 cycle, people privy to the matter told ET. Industry experts say the ongoing consolidation in the industry and the challenges faced by media companies may result in subdued bidding.

The media rights will be sold through an e-auction, with the deadline to purchase the tender document set for September 30. Unlike other cricket properties, the TV and digital rights of the ACC events will not be sold separately. The rights package includes the Asia Cup tournaments for men and woman, as well as Under-19 and emerging teams’ competitions. Four editions of the Men’s Asia Cup are slated for 2025, 2027, 2029, and 2031. India will host the Asia Cup next year.

The Asia Cup remains the last significant cricket rights deal available in the market. It will offer insights into the potential future of major cricket properties. Major contenders like Star India, Viacom18, Sony Pictures Networks India (SPNI), Zee Entertainmentand Dream Sports-owned FanCode are expected to purchase the tender documents. However, it remains uncertain how many will make serious bids.
Analysts also highlight that the Indian Premier League (IPL), International Cricket Council (ICC), and Board of Control for Cricket in India (BCCI) media rights have already absorbed a significant portion of the sports rights budgets.These three properties, along with Cricket Australia, Cricket South Africa, the England and Wales Cricket Board and New Zealand Cricket, have secured over $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. The value of the IPL has decreased by 11.7% year-over-year to $9.9 billion in 2024, reflecting the impact of consolidation on media rights values, according to D and P Advisory. An aggressive base price will also discourage serious players from bidding, said analysts.
“The ACC media rights bidding is taking place amid significant shifts in the industry. On the one hand, Star-Viacom18, which already holds most of the major cricket rights, may lack interest in acquiring another property,” said Rajesh Sethi, senior advisor for media and entertainment with PwC and ex-CEO of Ten Sports.”On the other hand, Sony is eager to rebuild its India business after the failed deal with Zee. Meanwhile, Zee is prioritising profitability and is unlikely to take a risk on cricket. Tech giants are expected to pass on this opportunity once again,” Sethi said.

Following conditional approval from the Competition Commission of India, Star and Viacom18 may tread cautiously, mindful of potential additional scrutiny from regulators, according to high-level media executives who spoke on condition of anonymity.

The executives noted that SPNI, under new chief Gaurav Banerjee, is likely to be keen on bidding for ACC rights, provided the cost is reasonable. The company narrowly missed out on BCCI rights to Viacom18 and holds the rights for England, Sri Lanka and New Zealand cricket, among others. It has steered clear of pursuing high-cost sports assets to maintain profitable growth.