IPL Media Rights Value May Touch $10 Billion: Lalit Modi
Lalit Modi, the original architect of the Indian Premier League (IPL), has made a bold prediction that the IPL media rights bid might touch $10 billion. The IPL media rights e-auction began today with Disney, Sony, Viacom18, and Zee in the fray.
"I predict that this new IPL media rights tender will fetch close to 8 to 10 billion dollars. I believe this is the value of a genuinely global and world-class product," Lalit Modi said in a blog on his personal website.
Modi argued that the explosion in digital consumption and the inherent strength of linear TV will ensure that the bids will touch $10 billion.
"The explosion in the digital space, which we first explored briefly back in 2010, is now a reality. Every life is dictated by the mobile phone and IPL will be no different. Linear TV is still very much the lifeline for an Indian audience. So that is going nowhere. Now add the digital boom and the strength of Linear TV, and we have close to 10 billion dollars!" he averred.
He further stated that the media rights value will match the action on the field. "I am confident that this value will match the fun on the field with several close contests and a lot richer talent bursting through with their performances," he stated.
Reminiscing the initial days of the IPL, Modi said IPL as an idea was written off by many naysayers in 2007. "When we conceived the idea back in 2007, there were a lot of naysayers. Will this work? Why would companies own teams? What about the auction? Isn’t it immoral? We had all these questions thrown at us right at the start. But we knew just what we were aiming for. We had a lot of friends to thank for believing in our product," he added.
He also pointed out that IPL investors like Reliance and GMR have diversified their sports portfolios by investing in new sporting leagues. According to him, the credit for attracting corporates to sports should go to IPL.
"Today those very people have grown into massive cricket business houses investing in leagues worldwide, like what we have with Knight Riders! There are others also, like the GMR and Reliance, who are keen to diversify into other leagues. It is all due to the success of the IPL that these companies have the belief in expanding their vision and growing in other territories. But nothing will be bigger than their IPL investment, ever!" he said.
