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ICC Media Rights Tender Explained: FAQs about what’s going on, what’s not and the buzz around it all | News about cricket
MUMBAI: Facts International Cricket Council (ICC), by a tender document, has requested interest TV to proceed and submit bids.
There has been enough talk about the bidding process being “too complicated” and “lack of transparency”.
But what exactly are these complications? this is a Frequently asked questions detail the entire process.
What: Bid for all ICC events for four or eight years.
What does it mean: Tenders are being invited for the following events and cycles: first) There is an option to submit bids for a four-year cycle that includes a bid over 50 World Cuptwo T20 World Cupsone Championships from 2024 to 2027. 2) There is also an option to submit bids for an 8-year cycle that includes two World Cups spanning over 50, four T20 World Cups and two Champions Trophy events.
When: The ICC has called for a closed (financial) auction on August 26. They say if the bids are “unsatisfactory”, they will call for an electronic auction in Round Two on August 28. .
Who can bid: The technical bid needs to be submitted by August 22. Any broadcaster that deletes it can participate.
What is Round 1 & Round 2: Round 1 is a close bid. Only when the ICC indicates it is “not satisfied” with the Round 1 bids, will the ICC request a Round 2 bid – held in an electronic auction format. For Round 2, the ICC will want broadcasters to participate in a mock auction.
Where is the confusion: The ICC did not clarify what the indicators that emphasize the word “satisfaction” are. They said: We will open the financial tenders privately (not in front of the bidders) and decide if we are okay with it. They also say, it is not necessary to empower the highest bidder or the bidder for eight or four years. They kept it all public, didn’t explain the process and said “Only the ICC will take the call”.
Is there any more confusion: Financial bids will be submitted by August 26. Two representatives of each bidder will be allowed into the room, once submissions are completed. But all bids will not be opened in front of all representatives. They will be asked to leave the room and bids will be opened privately. Broadcasters neither like nor trust this process.
What the broadcasters say: This process is too complicated, unclear and lacks logic. first. Do not share how they distinguish between four and eight years; 2. Saying that it is not necessary that the highest bidder wins; 3. Do not open bids in front of people or give immediate notice; 4. Does not explain why 8 years is required in the first place; 5. The process lacks transparency – broadcasters have a long list that makes them wary and suspicious of the process.
What is the need for an eight-year cycle: The ICC has not officially commented on this, but the industry points out that “only an eight-year bid would allow six or seven baseball boards around the world (facing bankruptcy) to monetize ICC revenues for a steady period of time and allow them to receive upfront payments against guaranteed participation in events”.
Does this mean: The process is complicated because broadcasters are not informed in writing of how the ICC will determine the value of an eight-year versus four-year bid. Furthermore, while other cricket boards are expecting revenue over a sustainable period, they also have no idea how much they will earn over the course of the next eight years.
What the ICC says: The ICC said it has identified “the best possible process” and expects all potential bidders to participate. The ICC also said, “we can only hope they will come to the bidding table”. They also believe that closed bids – like an electronic auction – will help with better price discovery.
Does round 2 make sense: BCCI Secretary Jay Shah asked the ICC – during a meeting of the Executive Director – to conduct an electronic auction itself in Round 1. The logic, among other things, is also based on the fact that if broadcasters set their numbers equal to how to place a closed bid in Round 1, on what basis will Round 2 start and if Round 2 is clearly the more transparent and possible way, why not hold an e-auction in the first round itself.
Do closed bids help with better price discovery: It’s a classic case of what comes first – the chicken or the egg. One can never know. That said, for a state agency, say industry executives and top membership councils – transparency becomes far more important than top dollar levels.
Will fake auctions happen: The ICC said “several” (unidentified) broadcasters have agreed to participate in fake auctions, a kickstart to electronic auctions. There are several broadcasters though unconfirmed. The mock auctions are scheduled for August 17.
What can happen now: Broadcasters won’t budge from their positions and wait until the last minute to see if they want to bid. While no one was convinced with the ICC process, there was also a “fear of missing out” that no one wanted to experience.
There has been enough talk about the bidding process being “too complicated” and “lack of transparency”.
But what exactly are these complications? this is a Frequently asked questions detail the entire process.
What: Bid for all ICC events for four or eight years.
What does it mean: Tenders are being invited for the following events and cycles: first) There is an option to submit bids for a four-year cycle that includes a bid over 50 World Cuptwo T20 World Cupsone Championships from 2024 to 2027. 2) There is also an option to submit bids for an 8-year cycle that includes two World Cups spanning over 50, four T20 World Cups and two Champions Trophy events.
When: The ICC has called for a closed (financial) auction on August 26. They say if the bids are “unsatisfactory”, they will call for an electronic auction in Round Two on August 28. .
Who can bid: The technical bid needs to be submitted by August 22. Any broadcaster that deletes it can participate.
What is Round 1 & Round 2: Round 1 is a close bid. Only when the ICC indicates it is “not satisfied” with the Round 1 bids, will the ICC request a Round 2 bid – held in an electronic auction format. For Round 2, the ICC will want broadcasters to participate in a mock auction.
Where is the confusion: The ICC did not clarify what the indicators that emphasize the word “satisfaction” are. They said: We will open the financial tenders privately (not in front of the bidders) and decide if we are okay with it. They also say, it is not necessary to empower the highest bidder or the bidder for eight or four years. They kept it all public, didn’t explain the process and said “Only the ICC will take the call”.
Is there any more confusion: Financial bids will be submitted by August 26. Two representatives of each bidder will be allowed into the room, once submissions are completed. But all bids will not be opened in front of all representatives. They will be asked to leave the room and bids will be opened privately. Broadcasters neither like nor trust this process.
What the broadcasters say: This process is too complicated, unclear and lacks logic. first. Do not share how they distinguish between four and eight years; 2. Saying that it is not necessary that the highest bidder wins; 3. Do not open bids in front of people or give immediate notice; 4. Does not explain why 8 years is required in the first place; 5. The process lacks transparency – broadcasters have a long list that makes them wary and suspicious of the process.
What is the need for an eight-year cycle: The ICC has not officially commented on this, but the industry points out that “only an eight-year bid would allow six or seven baseball boards around the world (facing bankruptcy) to monetize ICC revenues for a steady period of time and allow them to receive upfront payments against guaranteed participation in events”.
Does this mean: The process is complicated because broadcasters are not informed in writing of how the ICC will determine the value of an eight-year versus four-year bid. Furthermore, while other cricket boards are expecting revenue over a sustainable period, they also have no idea how much they will earn over the course of the next eight years.
What the ICC says: The ICC said it has identified “the best possible process” and expects all potential bidders to participate. The ICC also said, “we can only hope they will come to the bidding table”. They also believe that closed bids – like an electronic auction – will help with better price discovery.
Does round 2 make sense: BCCI Secretary Jay Shah asked the ICC – during a meeting of the Executive Director – to conduct an electronic auction itself in Round 1. The logic, among other things, is also based on the fact that if broadcasters set their numbers equal to how to place a closed bid in Round 1, on what basis will Round 2 start and if Round 2 is clearly the more transparent and possible way, why not hold an e-auction in the first round itself.
Do closed bids help with better price discovery: It’s a classic case of what comes first – the chicken or the egg. One can never know. That said, for a state agency, say industry executives and top membership councils – transparency becomes far more important than top dollar levels.
Will fake auctions happen: The ICC said “several” (unidentified) broadcasters have agreed to participate in fake auctions, a kickstart to electronic auctions. There are several broadcasters though unconfirmed. The mock auctions are scheduled for August 17.
What can happen now: Broadcasters won’t budge from their positions and wait until the last minute to see if they want to bid. While no one was convinced with the ICC process, there was also a “fear of missing out” that no one wanted to experience.
