PSL TV Rights Sold for 6.3 Billion Rupees.

Picture from espncricinfo

An auction featuring the Pakistan Super League (PSL) broadcasting rights has resulted in a successful bid of 6.3 billion rupees. This amount is notable because it is 2 billion rupees more than the previous deal, indicating the significant interest and value attached to the broadcast rights for the well-known cricket league.

The channel with the highest bid from the first round of bidding increased its offer by an additional one billion rupees, securing the broadcasting rights for the next two years at a total of Rs. 6.30 billion. During the first round of bidding, the competitors included a state-owned TV channel, a previous rights holder, and two other competitors. Nevertheless, none of the initial bids matched the reserve price set at Rs. 7.358 billion.

The Pakistan Cricket Board (PCB) has approved this deal, subject to the noteworthy condition that 95% of the earnings go to the PSL franchises. This financial distribution means that the franchises stand to gain more than Rs. 3 billion a year, which would be a substantial improvement to their financial position. In addition, digital rights were purchased separately for a substantial amount of Rs. 1.85 billion, demonstrating the increasing significance of digital platforms in the distribution of sports content.

Remarkably, the PCB adopted a discriminating stance, allowing only businesses that owned sports channels or those that had purchased rights from another channel to engage in the bidding process. This calculated move was made to guarantee that organizations with experience and resources in sports broadcasting were the front-runners.

The PCB reserved the right to reevaluate the offers or even to halt the process altogether if the reserve price was not reached, however the outcome of the second round of bidding and the winning channel's sizable offer resulted in an agreement.

The background information indicates that the reserve price for the previous broadcasting contract was Rs. 3.7 billion. The rights were eventually sold for Rs. 4.3 billion for a two-year period. It is interesting to note that the broadcasting rights were once again secured by the same entity that held the previous rights, indicating a continued partnership.

Prior to the bidding, the PCB hired the foreign firm "Colganbauer" to appraise the PSL media rights. They came to the conclusion that the rights were worth 6 billion rupees, which served as the foundation for the auction that followed.