ICC relents to broadcaster pressure on ‘media rights’ opaqueness, brings some clarity to tender process

The ICC has now decided to do the following:A) The base price (ICC has used the term 'benchmark' price) for the four-year rights cycle for all ICC matches in India is now being pegged at US$1.44b. B) The ICC is about to convey to broadcasters that a '2.8 multiplier formula' will be applied to the eight-year cycle, which means the base price for the eight-year cycle will be calculated at US$1.44b (base for four years) multiplied by 2.8, which works out to around US$4b.

C) The ICC will also confirm how it will determine if Round Two is necessary. Should the difference between the winning bid and the second-highest bid be less than 10%, an e-auction will be called for.

The ICC is calling the 'base price' as the 'benchmark price' because it's not necessary that broadcasters cannot bid below the stipulated number. Broadcasters, it is further learned, are not really convinced with the multiplier formula either, but do not mind "some bit of clarity".

TOI had explained the metrics and the calculation of these base prices here: Exclusive - Base price for ICC media rights for India can work out to approx $1.5b for four-year, $4b for eight yearsViacom, Disney, Sony and Zee – four of the six broadcasters who had picked up the tender document when the ICC had brought it out – had been crying hoarse about the process put in place to carry out the sale of rights until now. Factors like A) not putting out a reserve price, B) not specifying the multipliers for the eight-year bid, C) not explaining how the ICC will decide to conduct Round Two – an e-auction – if Round One (closed bid) is deemed unsatisfactory, D) Not announcing the bid numbers in front of the broadcasters had forced the broadcasters to constantly remind the ICC that they