IPL media rights auction: 4x bidding value expected; big players in fight

The upcoming auction of Indian Premier League (IPL) media rights on June 12 could be as high as four times the previous one.

Brokerage firm Elara Securities said the broadcasting rights of the IPL for the next five years (2023-28) to soar three-to-four times to Rs 50,000 - 60,000 crore, highlighting the trailblazing growth of the cash-rich domestic T20 cricket tournament.

There are big names who are contesting for IPL media rights this time. According to a Bloomberg report, Amazon's Primevideo, Disney plus Hotstar, Mukesh Ambani's Reliance Industries, Zee Entertainment-Sony India, and Dream11 are among those in the race to acquire the media rights to the fourth biggest professional sports league in the world by revenues.

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The brokerage firm also expects digital rights for broadcasting IPL matches to be auctioned at a premium of 100 percent from the current base. It also values IPL teams at 14-to-15.5 times market cap-to-sales in the light of its expectation of a blockbuster media rights auction. Media rights account for 70 percent of IPL teams’ revenues.

IPL's 15th edition has recently been concluded, with debutants Gujarat Titans taking home the trophy in a tournament that expanded to 10 teams. Lucknow Super Giants were the second team to make their debut this year.

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