The six-year long international media rights deal of the Bangladesh Cricket Board (BCB) which was won by Gazi TV, a Bangladesh-based private satellite television channel on Friday through an open bid, will earn the board ‘ten times’ more than what the organisation had made within the years 2012-2014.
During these two years, Bangladesh played against the West Indies, New Zealand and Sri Lanka at home, earning the BCB $250,000 in the process while the same three series in the next six-year cycle have been sold for over $2.4m. According to on-record documents, the agreement will also help the BCB get $4.52m more than what they had procured within the years 2000-2012.
The figures had appeared amazing in the past too. Cricket’s governing body had sold the rights for the years 2000-2006 to World Tel and ESPN Star Sports for $11m but had actually received $9.5m.
The Nimbus deal for the years 2006-2012 was sold for $56m including production costs. The deal was eventually quoted by the BCB to be $36m but the deal had only fetched the board $6m due to disputes. These combination of deals saw the BCB lose a total of $31.5m over the span of the last 12 years.
Concerns were also raised this time as to how secured the latest deal is given the fact that a local firm is involved. When queried, BCB marketing and commercial committee chairman Kazi Inam Ahmed informed that the ‘yearly based bank guarantees’ will ensure everything is on track. “We took our legal and chartered accounting firm’s advice before making the contract,” Inam told the Dhaka Tribune yesterday.
“At the beginning of each year we will get a bank guarantee which shall remain as we receive the full year’s payment.
“The first year bank guarantee will only be released once the full payment and the second year’s bank guarantee is received. On top of this, we will hold the security deposit of $2.5m for six years,” Inam explained.
The ‘floor price’ of the media rights was the focal point since the BCB floated the tender on April 28. Through several board meetings, the BCB tried to determine the floor price but failed and eventually hired professional chartered accounts from Australia to assess the ‘value’. The assessment given by the Australian firm was $49m but eyebrows were raised after the BCB set the floor price at $20m.
“First of all, that number [assessed value] includes $15m in production. So as far as the total rights value is concerned, we can say that it is 20 (base price) plus 15 (production costs) equaling $35m. Also, that number is the possible revenue for all global broadcasters/cable TV from advertisements and sponsorships if all of Bangladesh’s games are shown in all the territories. So in reality, the biggest benefit for the BCB is that we have sold a long-term deal, which is always better,” said Inam.