By Karan Taurani/Elara Caps

– As per industry reports, IPL bidding will commence on 12th June ; the bidding will be held in two tranches – 12th June (Digital and TV rights) and 13th June (Non exclusive cluster and overseas). This will be an open bid wherein the

– As per media reports, the number of matches are expected to move up towards 94 in the last year of the 5 year cycle; the first two cycles will have 74 matches, the next two years with 84 Matches; which means on an average there will be 84 matches per year for the 5 year cycle

– As per above, the number of matches vs earlier cycle has gone up 40%; our assumption on media rights (basis INR 500-600bn) implies a growth of 3-4x vs earlier cycle; after deducting the match growth, like to like growth in media rights will be in the range of 2.5-3.5x

– We estimate 50% of the rights to be allocate for digital (including 18 match cluster), which means that basis above rights for digital will grow 6-7x vs earlier cycle ( on a like to like basis, digital rights growth with will be in the range of 5.5x -6.5x); higher growth over earlier cycle is primarily on the back of 1)aggressive bidding by multiple players and 2) strong growth rates in digital revenue

– We estimate balance 50% rights towards TV and overseas, of which TV rights portion is estimated to grow 2x -2.5x vs earlier cycle (on a like to like basis, TV rights will grow 1.6-2x); growth here is lower due to converging growth rates in the TV industry and lower competitive intensity (only three large broadcasters to bid – TV18, Sony/Zee and Star)

Details on the bidding process

– The bidders will be bidding from their respective premises, while they would be able to see the highest bid on the screen

– However, the bidder’s name will not be displayed while the auction is on. Following the highest bid, the other bidders will have 30 minutes to counter the offer, failing which the highest bidder will grab the rights. The bidding can continue for days