The Hindu Business Line : Zee not to re-bid for cricket rights

"The board of directors in its meeting on September firmly decided against re-bidding," ZTL said in a press release issued here on Tuesday. ZTL's board had met on Monday following Bombay High Court's suggestion to go in for a fresh and final bid.

The Board for Control of Cricket in India (BCCI) had awarded the broadcast rights of cricket matches to be played in India between October 2004 and September 2008 to ZTL, which emerged as the highest bidder at $308 million. ESPN-Star Sports, the second highest bidder, took BCCI to court challenging its decision to grant rights to ZTL.

ZTL on Tuesday filed an affidavit in the Bombay High Court stating that it does not intend to re-bid. The company said it has served the copies of its affidavit to ESPN-Star Sports and other respondents including BCCI and the Union Sports Ministry.

This decision now brings the issue of awarding of cricket rights back to the court.

The matter will come up for direction at the Bombay High Court before Chief Justice Mr D.S. Bhandari and Mr Justice D.Y. Chandrachud on Wednesday. Hearing on the ESPN-Star Sports case will come up on Thursday.

The Union Sports Ministry as well as BCCI also filed their affidavits in the Bombay High Court.

The legal tussle has to end shortly as the first of the domestic cricket series commences on October 6 when India meet Australia in a test match at Bangalore.

Although there was no word from ZTL today on the reason why it chose not to re-bid, industry sources pointed out that re-bidding would mean taking the price of rights above $308 million. Analysts and industry sources were sceptical that broadcasters would find the property financially viable at prices above $308 million.

Analysts say at $308 million itself, ZTL may face a shortfall in earnings or just about cover the costs.

According to ESPN-Star Sports, it was the highest eligible bidder under the rules of bidding specified by BCCI. ESPN-Star Sports said that Zee does not qualify because it does not have any experience of broadcasting or producing live international cricket event as specified in the tender.

However, ZTL officials say that most sports broadcasters including ESPN-Star Sports outsource cricket production and programming.

Industry sources maintain that in the event ZTL eventually bags the rights it will be able to leverage the cricket property to drive growth not only in advertising sales, but push distribution through cable and satellite as well as DTH.

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