Zee outbid ESPN-Star for Indian telecast rights

The Zee network has emerged as a surprise front-runner in the tussle to win telecast rights for cricket matches to be played in India over the next four years. The bidding process closed on Saturday, and the result will be announced next week, with industry sources suggesting that Zee had outbid ESPN-Star Sports.

According to a report in The Hindu, Zee were thought to have tabled a bid worth approximately US$262million, about $14million more than the ESPN-Star Sports offer. Prasar Bharati, the national broadcaster, are said to be willing to cough up $153million, with Sony Entertainment Television ($148million) and the Dubai-based Ten Sports ($141million) the rank outsiders.

Prasar Bharati had managed to win the existing rights for just $46million, over a period of five years. But the increased interest in the game has meant that the Indian telecast rights have become the Holy Grail for all broadcasters.

The Hindu report also quoted a BCCI source as saying, "The bids were opened today in the presence of BCCI officials and audit firm PricewaterhouseCoopers. A decision will be taken not just on the basis of financial strength but after evaluating parameters such as prior experience in cricket broadcasting as well."

Prasar Bharati and ESPN-Star have already signed an agreement for the sharing of rights, which involves a minimum guarantee, a revenue-sharing agreement and a percentage of the advertising revenue. Despite Zee's higher bid, it appears as if ESPN-Star's greater expertise, and strategic tie-ups, could tilt the scales in its favour.