Market sentiment reflected on Indian cricket as BCCI on Monday awarded the Indian teams’ sponsorship rights to STAR India Private Limited for Rs. 1.42 crore less per match than the previous sponsor Sahara India.
STAR India are now the title/series sponsors for all home bilateral and domestic matches, have the broadcast, internet and mobile rights, and also the jersey logo rights.
The BCCI has put the reserve price at Rs. 1.50 crore in the tender document and STAR India bid Rs. 1.92 crore for each international match that India will play while Sahara India was paying Rs. 3.34 crore.
Of the seven companies that bought the tender document, which cost Rs. 2 lakh, only two bid.
Sahara India was the only other bidder, but its bid was rejected on the ground that the company is in a legal dispute with the BCCI. Sahara bid Rs. 2.34 crore per bilateral match.
Had the Sahara bid qualified, the BCCI would have been better off.
"Sahara has gone to court, praying for directions to the BCCI on certain matters, but the court has not accepted it. So they are going to appeal against that court order," an official told Mail Today. "That’s why their bid was rejected."
The rights period is three years and three months — from January 1, 2014, to March 31, 2017.
During this period, India will play a minimum of 35 Tests, 65 One-Day Internationals, and 17 T20 Internationals, as mentioned in the tender document.
The other segment of the bid was matches in International Cricket Council (ICC) and Asian Cricket Council (ACC) events.
For this, Rs. 60 lakh was the reserve price and STAR India bid Rs. 61 lakh per match.
Hence, the BCCI would make at least Rs. 199.75 crore from the number of matches mentioned above.
Unlike all India bilateral series, during which logos are displayed on the chest and the leading arm of players, at ICC and ACC events, players can display the sponsor’s logo only on the leading arm.
The BCCI, in a statement released after a marketing committee meeting in Chennai, at which the tenders were opened, did not provide many details.
"STAR India Pvt. Ltd. have been awarded the team sponsorship rights covering BCCI events, ICC events and ACC events, for the period 1st January 2014 to 31st March 2017," said BCCI secretary Sanjay Patel.
"Rights include the right to be called the 'official team sponsor’, and to display a commercial logo on the team clothing of the senior men’s team, the under-19 men’s team, the men’s 'A’ team and the women’s team." The media release, unlike on previous occasions, did not mention the price at which the sponsorship was awarded.
However, BCCI sources said that STAR would pay Rs. 1.92 crore per bilateral match and Rs. 61 lakh for each match in ICC and ACC tournaments.
"STAR India Pvt. Limited, Sahara India, Airtel, Multi Screen Media, Games Unlimited, United Spirits, and the World Sports Group had purchased the tender document and only STAR and Sahara eventually bid," the official said.
The BCCI stands to lose a lot of money compared to the previous sponsorship period. But a BCCI official, while pointing to the recession, said whatever was bid was good enough.
"We can’t help it. But this is better than nothing, looking at the market in India. Taking everything into consideration, it certainly looks better and much more than the base price (of Rs. 1.50 crore/ match)," he said.
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