IPL tender for media rights draws flak from WSG

The Indian board has invited bids for the IPL broadcast rights for certain markets, as well as the global internet and mobile rights, for 2011-2014. However, the decision has been criticised by World Sport Group (WSG), which bought the global broadcast rights prior to the first IPL and is locked in a legal battle with the board over its decision to cancel their contract last year over allegations of fraud.

The tender, published in the Indian media on Tuesday, is for the rights to distribute live feed of IPL matches on television to several territories excluding, among other, India, South Africa and Australia; and worldwide radio, internet and mobile rights.

WSG's objection is that the tender violates the undertakings the board has given to the Bombay High Court and the Indian Supreme Court that it would not sell the rights to a third party until their dispute is resolved.

The case has already passed through the Bombay High Court, with a division bench of the court ruling, on February 23, that the BCCI had failed to prima facie establish that fraud had been committed and directed the two parties to appoint an arbitrator to hear the case. "Till the Arbitrator is appointed, the respondent [the BCCI] is restrained from giving the contract in question to anyone," the order said. "During the pendency of this appeal, a statement was made by the respondent that they will not create any third party interest."

The board subsequently appealed against the decision to the Supreme Court, while providing an assurance that it would not enter into an agreement with anyone else until the dispute was resolved. Tuesday's tender notice says the tenders are available till March 15 and are to be submitted by March 20.

In a statement, WSG said the tender was an "unfair, unwarranted and unnecessary attempt by the BCCI to create facts on the ground in the context of the Supreme Court's forthcoming consideration of the admissibility of an appeal itself". It noted that the "unusually worded" public tender notice made no mention of the current proceedings before the Supreme Court.

The BCCI had, in June 2010, terminated all its IPL media license agreements with World Sports Group (Mauritius) over the payment of the Rs 425 crore-facilitation fee (about US$90m) by the parent company of the tournament's Indian broadcast partner to WSG. The board claimed it was rightfully owed the money as the rights to the tournament were with the BCCI.

WSG said the board's decision to sell the rights "illustrates its continuing unwillingness to follow due legal process" and that the agency "will take the necessary action to protect its commercial rights and those of its licensees around the world."