BCCI Cancels Domestic Broadcast Rights with Nimbus Communications Amid Fading Popularity of Cricket

Strategic Insights -

The Board of Control for Cricket in India (BCCI) has cancelled the domestic broadcast rights given to Nimbus Communications, citing defaulting on payments and a forfeited bank guarantee amount of an unspecified value, just days after India crushed West Indies in Test and One Day series. This move comes as a result of slumping ad rates and falling viewership, raising questions over the continued popularity of India's biggest sport. Nimbus Communications had paid Rs2,000 crore for the rights in 2009. The BCCI will now have to float a new tender for the broadcasting rights, which may face difficulties due to falling TV viewership and poor advertiser response.

Key Takeaways:

  • The BCCI has accused Nimbus Communications of defaulting on payments and has forfeited the bank guarantee amount, leading to the cancellation of the domestic broadcast rights.
  • Nimbus paid Rs2,000 crore for the rights in 2009, but has now failed to meet its contractual obligations.
  • The cancellation of the rights is a result of slumping ad rates and falling viewership, which has raised questions over the continued popularity of cricket in India.
  • The BCCI will now have to float a new tender for the broadcasting rights, which may face difficulties due to the current market conditions.
  • The industry experts suggest that survival is difficult at anything below Rs4 lakh per ten seconds, which is the current rate charged by Nimbus under the contract with BCCI.
  • The plethora of cricket matches over the past year has led to a general fatigue with cricket, according to a senior official from one of the IPL teams.
  • The official stated that things are not as buoyant as they were in the past, with falling television ratings between the IPL seasons.

Statistics:

  • Nimbus Communications paid Rs2,000 crore for the domestic broadcast rights in 2009.
  • The cricket contract stipulates Nimbus to pay an approximate Rs32 crore per match to the BCCI.
  • Survival is difficult at anything below Rs4 lakh per ten seconds, according to industry experts.
  • The BCCI has forfeited the bank guarantee amount of an unspecified value.

Sources:

  • The Times of India
  • BCCI (Board of Control for Cricket in India)