As the legal battle for the Board of Control for Cricket in India's telecast rights for the next four years continues, a feasibility study conducted by two state cricket associations says if the Board floats its own dedicated television channel it would rake in over Rs 16,000 crore in the next five years.
The study says that once the BCCI gives the go ahead, the channel could be launched to coincide with the forthcoming visit of Sri Lanka this September.
Also read: Bindra throws down the gauntlet
It has projected total revenues to the tune of Rs 2,149 crore in the first year to Rs 3,132 crore in the third year to Rs 4,781 crore in the fifth year with an aim to exploit the full potential of South Asian expatriates spread around the world.
The report, which was released to media persons on Wednesday by Punjab Cricket Association president I S Bindra and Rajasthan Cricket Association president Lalit Modi says that with the introduction of a 24-hour pay channel, beaming at least 29 Test matches and 43 ODIs, the BCCI could generate five times more revenue than it would otherwise earn by the way of selling the telecast rights.
"Currently, in India, the primary revenue for every sports channel, be it ESPN, DD Sports or any other channel, is from cricket. Over the years we have seen a number of court cases regarding the award of TV rights by BCCI, but once the Board starts its own channel then there is no issue of bagging the rights as we own the rights," Modi said.
At present the situation is such that the rights for cricket telecast are fragmented among different sports channels. Also the capital markets are buoyant and the time is ripe for an IPO or listing.
Modi said the study has been circulated among the Board members and it will come up for discussion in the Board's next Working Committee meeting.
"I had raised this matter in the last Working Committee meeting in Delhi and was asked to do a study. Everyone is very excited to the idea as it will help the state associations to have more funds at their disposal," Bindra said, when asked whether he had the Board's backing for the venture.
He also said that a round-the-clock cricket channel would promote the cause of domestic cricket in India.
"At the moment we are not marketing our domestic cricket and tapping the market. If we have audiences for college basketball in USA, there will definitely be viewers for the Ranji Trophy final. It is a shame that we were unable to watch the Ranji Trophy final or the Ranji One-Dayers, now on in Mumbai.
"M S Dhoni would have been in the Indian team three years back if we had proper coverage of domestic matches," Bindra said.
The new channel will have 118 days of domestic cricket and suggested a Domestic Cricket League with eight city teams in the fray. The revenue generated will be ploughed back to state Associations, sports persons and in upgrading cricket infrastructure.
"At present, the BCCI says, it will give 26 per cent of its revenue back to the cricketers. With this new channel that fund will really shoot up," Modi said.
The study also says one of the key threats to its success is the international cricket rights. The other is getting the consent of overseas Boards either through bidding or negotiations.
It says BCCI should strive to maximise international cricket played in India and provide for at least two Test match cum one-day series each year and a triangular one-day tournament. Further, India should play only one away series each year by providing higher match fees for visiting teams as an incentive to draw a large number of overseas teams.
Also the Board should negotiate, as a precondition, television rights for the India market as part of the package of reciprocal visits of Indian team to other countries.
If required by law, television rights would be shared with DD or simulcast of all one-day matches involving India. But Test matches will be exclusive on the BCCI channel, with only highlights shared with DD.
It has not factored in the revenues from title and team sponsorship though these are well-established revenue sources.
So are other potential revenues from merchandising, franchising, syndication, events, web casting and radio.
The suggestion is to establish an autonomous body/public limited company with the CEO reporting to a Board of Directors with accent transparency and team building, concludes the study.
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