Sony Entertainment TV India (now known as Multi Screen Media) will cough out around Rs 49.20 billion for getting the Indian Premier League (IPL) rights for nine years.
Sony has taken only the TV telecast rights for the subcontinent including India, Pakistan and Sri Lanka. “In the last agreement, Sony had the rights to extend the deal after five years. There is nothing like this in the fresh deal and Sony will have the rights for nine years. The payout is around Rs 49.20 billion,” says a source close to the development.
World Sport Group (WSG) has kept all the global and other media rights. An official announcement had been earlier made that the nine-year IPL rights running through till 2017 was valued at Rs 82 billion ($1.6 billion).
WSG had signed long-term contracts with international TV broadcasters. Those stand valid as there was a clause of revising the rates from time to time. WSG will now spend time upping the rates. Besides, it believes that the other new technology platforms will emerge during this nine-year course. Even in India, WSG has kept the other media rights except television,” the source says.
The earlier ten-year contract, which Sony couldn’t protect, was worth $918 million for telecast and $108 million for promotion of the tournament. Sony, the source says, had paid $40 million for the first of the ten-year deal it had with IPL.