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Tag: Madras

  • BCCI move on cricket tender ‘improper’: Madras HC

    NEW DELHI: In what could be termed a moral victory for Zee Telefilms, the Madras high court today ruled that the cancellation of the tender order by the Indian cricket board for telecast rights was “improper.”

    The court, while refusing to grant any pecuniary relief to the petitioner, however, said that Zee Telefilms could sue the Board of Control for Cricket in India (BCCI) for damages.
     

    Disposing off a petition filed by Zee against the Indian cricket board cancelling a tender process for telecasting rights for the period October 1, 2004 to September 30, 2008, Justice KP Sivasubramaniam directed that fresh tender be initiated for telecast rights for matches in the country after the on-going India-Pakistan series, a Press Trust of India report from Chennai stated.

    Zee Telefilms had moved the Madras HC a few months back after the Supreme Court dealt it a body blow saying BCCI could not declared a `state’ as per Article 13 and 36 of the Constitution and, hence, could not be sued for damages. Still, the apex court had added the Board’s action could be challenged under other Articles of the Constitution in some lower court.
     
     

    “I am inclined to conclude that the series of events, which have ultimately ended in the termination of the tender process was unjust, illegal, and was the result of bias against Zee Telefilms. I am even prepared to assume that Dalmiya did not have a good opinion about Zee Telefilms capacity, capable of satisfying the international standards and quality of televising the matches and honestly believe that the petitioner was not up to the expectation,” an agency reported, quoting the judge, stated, which is a clear indictment of BCCI’s former president Jagmohan Dalmiya.

    “The conduct of the president of such a big institution should be above board and cannot act in unethical manner resulting in causing loss to the petitioner,” the judge added.

    Reacting to this development, Zee Telefilms spokesperson Ashish Kaul said, “The court judgement is a clear reflection of our belief that BCCI was biased against Zee Telefilms. Now, the whole world knows that BCCI is marred with mismanagement.”

    On being asked by indiantelevision.com whether Zee would seek damages, Kaul added, “Yes, we can now sue the BCCI for damages and are presently discussing the development with our management and legal advisors”

    BCCI could not be contacted for comments till the time of writing this report. Though Zee was officially mum on it, court sources told indiantelevision.com that in its affidavit, the petitioner had sought financial relief of about Rs. 2 billion owing to BCCI canceling the tender process, which had seen Zee Telefilms emerge the highest bidder with a quote of $ 308 million for four years of Indian cricket from 2004.

  • Next big cricket fight: ad sales, production & international rights

    Next big cricket fight: ad sales, production & international rights

    MUMBAI: The Indian telecast rights issue continues to provide ever new twists in the tale. Yesterday’s interim ruling by the Madras High Court may mean that the telecast feed of the upcoming India-Pakistan cricket series goes to pubcaster Prasar Bharati for free, but there is still money to be made on air time sales, award of the production contract and the sale of international telecast rights.

    It is on this that the attention of competing lobbies within the Indian cricket board, as well as interested broadcasters and sports marketing agencies, is now firmly fixed.

    NIMBUS OFFERS MINIMUM $ 33 MILLION FOR COMPOSITE RIGHTS

    The first off the blocks as it were appears to have been Nimbus Communications chairman Harish Thawani, who shot of a letter to BCCI president Ranbir Singh Mahendra offering a deal in a “range of estimate is from $ 33 – 45 million”.

    As per the letter sent to the BCCI, a copy of which has been obtained by indiantelevision.com, the payout Nimbus is offering to the board is based on the following calculations:

    Net Revenue from Advertising Sales of Broadcasting within India – Rs 1.1 billion ($25 million) Net Revenue from Sale of International Rights – Rs 352 million ($8 million)

    This totals $ 33 million. Nimbus has also offered a sweetener wherein it states that the contract “can be procured by us and it is
    entirely possible that this revenue may rise to as much as $ 45 million depending upon the quality of coverage, type of the matches, swiftness in decision making, etc.”

    The letter states that Nimbus “would be happy to provide detailed offers in response to any invitation to tender from the BCCI and within 24 hours if required.”

    Thawani’s company has also offered to do the TV production for “much less than $1.5 million, depending on the number of cameras and associated value added components of coverage.”

    Among the other players who have indicated interest on record are broadcasters Sony Entertainment and Dubai-based Ten Sports.

    SET India CEO Kunal Dasgupta has been quoted by PTI as saying, “We are interested to produce the series and would approach the BCCI on the matter.”

    Dasgupta says Sony, which got international rights for 31 cricketing days in 2004, would also be pitching for the same this time too. Interestingly, Dasgupta had told indiantelevision.com earlier that Sony was unlikely to pitch for the international rights if the C&S telecast rights for the Indian territory were not part of the proposition.

    Also making pitches, according to industry sources, are Pakistan-based broadcast company ARY Digital and sports marketing firm TWI.

    When asked by indiatelevision.com what the response of the board to the Nimbus proposal was, Mahendra, without confirming or denying having received any communication from Thawani, said, “I cannot comment on any specific offer. The working committee of the board will take a decision on these issues over the next two to three days.”

    Meanwhile, there is pressure coming in from other fronts as well. According to industry sources, a special general body meeting of the BCCI is being requisitioned demanding a full debate on the matter.

    Additionally, Indiantelevision.com is in possession of copies of letters from two state associations affiliated to the BCCI who have dashed off missives to the board president raising concerns about the potential of further loss of revenues if what happened during the last two series (India Vs Australia and India Vs South Africa) in October-November were to be repeated.

    RCA CHIEF LALIT MODI SUGGESTS CONTRACTS BE AWARDED THROUGH SHORT TENDER

    One letter came from newly elected president of the Rajasthan Cricket Association Lalit Modi (head of Modi Enterprises), who on Monday ended the three-decade rein of Jagmohan Dalmiya faction loyalist Kishore Rungta.

    Modi suggested that the ad sales rights be handed over to independent agencies. Modi alluded to DD’s offer of Rs 800 million minimum guarantee as a pittance and stated that a short tender would fetch over Rs 1.75 billion.

    According to Modi, the potential revenues from overseas rights was in the region Rs 500 million.

    Modi’s formula: Award contracts through a short notice tender process.

    PCB CHIEF BINDRA CALLS FOR BCCI WORKING COMMITTEE MEETING

    Weighing in to the dispute was also Punjab Cricket Association president IS Bindra who demanded an emergent meeting of the working committee to “take appropriate decisions”.

    Bindra, in his letter to Mahendra referred to the offer from Nimbus when he stated the event management companies were offering a guaranteed amount of $ 45 million within the legal parameters of the court order. Bindra also suggested short notice tenders be issued for production, airtime sales and marketing and international rights. All tenders should be backed by irrevocable bank guarantees, the PCB chief added.

    In his letter, Bindra also criticised the award of international rights for the Australia/Pakistan series to Sony for a “paltry” Rs 300 million.

    When Mahendra’s attention was drawn to the letters sent by Modi and Bindra, he, however, tersely refused comment.

  • Prasar Bharati to telecast, production BCCI’s choice

    Prasar Bharati to telecast, production BCCI’s choice

    NEW DELHI: Acting on expected lines, the Madras High Court, in an interim order today, ruled that the upcoming India-Pakistan cricket series telecast be done by pubcaster Prasar Bharati.

    According to sources in the BCCI, board members met today to decide on various aspects of the Indo-Pak series, including the still vexed telecast issue.

    However, till late in the evening, no decision had been taken on who would do the marketing and production of the cricket matches. Neither has any decision been taken on the overseas rights. BCCI has also conveyed to Prasar Bharati that the marketing would be done by an independent agency on behalf of the cricket board.

    The court also ruled that the production contract for the cricket series would go to any organisation that the Indian Cricket board deemed fit OTHER THAN the two warring parties to the dispute.

    What this in essence means is that, like the previous three fixtures that were held last October-November involving Australia, South Africa and Pakistan (BCCI silver Jubilee ODI), it will be national broadcaster Doordarshan that telecasts the matches. And if the precedent of those fixtures are anything to go by, it looks likely that Dubai-based Ten Sports will do the production.

    When contacted by indiantelevision.com, BCCI chief Ranbir Singh Mahendra cautiously said, “I will have to study the ruling with my lawyers before we make any decision on who will do the production.”

    Zee Telefilms, of course, expressed happiness about the ruling. When contacted, Ashish Kaul, vice president, Zee Telefilms Limited said,”We are extremely pleased with the judgment of the Madras court. Though this is an interim judgement, we believe that the final judgement will put this entire case in a right prespective. For the first time, the courts have been able to see the nexus between BCCI and ESPN over telecast of cricket and hence has not allowed BCCI to give the production rights to ESPN.”

    While Zee may have put up a brave front, the stock markets didn’t see the developments in quite the same light. The media major’s scrip was down 3.37 per cent on the day from its opening of Rs 153.85 and closed at Rs 147.25.

    ESPN India MD RC Venkateish expressed his disappointment, but said that the company still respects the courts observations.

    “Under the circumstances, it would seem that Prasar Bharati is in the drivers seat,he said. Asked, whether ESPN and Star Sports bottomlines would get hit because of the loss of the high-grosser Indo-Pak series, Venkateish explained that given the telecast impasse and the short notice at which things would have had to be organised, it would not have been possible to maximise revenue.

    The advertising cost could have covered the cost of acquisition,but to successfully enhance the scope of affiliate revenue (susbscription revenue) ideally more time is needed, which would not have happened with the Indo-Pak
    series,Venkateish said.

  • Madras High Court verdict on television rights Thursday

    Madras High Court verdict on television rights Thursday

    NEW DELHI: The cricket saga lurches on from one twist to another.

    Even as the Madras High Court today said it would deliver tomorrow interim orders on telecasting arrangements for the upcoming India-Pakistan cricket matches, ESPN Star Sports matched Zee Telefilms offer to produce, telecast and share the revenues with the Indian cricket board for the matches, while sharing a feed with the pubcaster Doordarshan.

    According to a report filed from Chennai by the Press Trust of India, reserving orders on a writ petition filed by Zee Telefilms challenging the Indian cricket boards decision cancelling the tender process, Justice KP Sivasubramanian said he would deliver orders tomorrow on live telecast of one-day as well as
    Test matches between the two sides.

    The judge will deliver orders on the main petition later.

    Meanwhile, in a letter to the Board of Control for cricket in India (BCCI), ESPN Star Sports MD Rik Dovey has said,In the event that the foregoing suggestion is acceptable to the BCCI, we suggest ESS and the BCCI jointly approach the honourable court and recommend that it authorises the implementation of this solution.

    Zee Telefilms had made a similar offer on telecasting the matches through a submission in the high court yesterday. However, pubcaster Prasar Bharati has rejected the “proposals” put forth by Zee and ESS and asserted that it would manage the production of the event on its own.

    Prasar Bharati today admitted that the BCCI had made it an offer to produce and market the India-Pakistan cricket matches that could be telecast by Doordarshan on mutually agreed commercial terms.

    Pointing out that such a scenario was acceptable to Prasar Bharati, which manages DD, its CEO KS Sarma said, “The BCCI offer is fine as far as the cricket board pays a minimum guarantee fee for the matches.”

    The revenue, as per the BCCI offer, was to be shared in the ratio of 70:30 in favour of the cricket board.

    Essel Group vice-president (corporate brand development) Ashish Kaul states, “It is strange that it took ESPN Star Sports so long to make an offer to BCCI and that too almost similar to our offer. Now it is quite apparent that these people are only interested in exploiting Indian cricket. Had they been so well intentioned and concerned about the welfare of cricket then they should have made an offer a long time ago”

    Despite repeated attempts, BCCI chief RS Mahendra could not be contacted for comments.

    The ESS letter to BCCI states that the media company would provide production of international standards and “at a minimum as required by the BCCI’s invitation to tender of 7 August last.” However, in return, ESS wants that it would get the rights to telecast the Indian-Pakistan cricket matches, while sharing the feed with DD on terms acceptable to the cricket board.

    ESS will deposit the advertising revenues which it receives following deduction of applicable agency commission, any cost incurred and fees payable to Prasar Bharati in relation to its telecast, any applicable taxes and mutually agreed production cost with the BCCI, Dovey has a conveyed to the BCCI
    secretary SK Nair.

    Yesterday, Zee had said that it is completely ready and willing, pending the final decision in the writ petition, to cover and telecast the forthcoming India vs Pakistan Cricket match series to be played in India.

    ZTL would do this entirely at its risks and costs and without any
    equity in its favour.

    The company had further said that it should deposit the entire advertisement revenue collected thereof (net of agency commission) both on its channel as well as Doordarshan, with the BCCI.

    ZTL will only require to be paid production costs as mutually agreed as well as any telecast fee, which ZTL would be required to pay to Prasar Bharati. ZTL shall also deposit with BCCI the entire amount which it may collect from international syndication sales without deducting our sales commission there from (BCCI had paid 15 per cent commission for the last series for international syndication sales),Zee had said.

  • Madras HC restrains BCCI from awarding telecast rights till 17 February

    Madras HC restrains BCCI from awarding telecast rights till 17 February

    NEW DELHI/MUMBAI: The Madras High Court today passed an injunction restraining the Indian cricket board from awarding television telecast rights to any broadcaster or party till the next date of hearing on 17 February.

    The court’s observations came on a petition filed yesterday by Zee Telefilms contending that cancellation of the bidding process by the Board of Control for Cricket in India (BCCI) amounted to breach of its fundamental rights under Article 226 of the Indian Constitution.

    The court’s observations today also means that the BCCI would find it hard to negotiate with any broadcaster, including Indian pubcaster Doordarshan, on the rights for the upcoming India-Pakistan cricket home series beginning early March.

    Along with the Zee petition, ESPN Star Sports too moved an application some time back in the Supreme Court seeking legal protection against BCCI awarding cricket rights to anybody else without considering ESS’ bid too.

    Earlier this month, the Supreme Court had dismissed Zee’s petition but suggested that a lower court could take up such cases under Article 226.

    Zee’s scrip reacted positively to the court’s verdict today, moving up by two per cent to Rs 154.75 at the time of filing this report.

    In case the Madras high court case drags, the board could revisit an earlier proposal it had been considering, which envisaged producing the cricket matches itself, buying time on a channel for telecast like producers of sponsored serials on Doordarshan do and then market the commerical time itself.

  • Cricket: Zee moves Madras High Court

    Cricket: Zee moves Madras High Court

    NEW DELHI: Zee Telefilms has moved the Madras High Court challenging the cancellation of its telecast rights bid by the Indian cricket board, which it argues has led to a breach of its fundamental rights under Article 226 of the Indian Constitution.

    According to company sources, the hearing is slated for tomorrow.

    On 2 February, the Supreme Court ruled that the Board of Control for Cricket in India (BCCI) was not a ‘State as defined under Article 12 of the Indian Constitution and, hence, cannot be sued for alleged violation of fundamental rights.

    However, the apex court, while dismissing Zee’s petition, had also suggested that some lower court could take up such cases under Article 226. The three-two split SC ruling is important,as the Indian cricket boards case would have a major impact on the autonomy of various sports bodies in the country and their subsequent functioning.

    Zee Telefilms had contended that the BCCI was a’State’ as it was selecting the Indian team and was given de facto recognition by the Indian government to carry out its functions. The petition had requested the apex court to scrutinise the Boards action of cancelling the bid for telecast under writ authority.

    Zee Telefilms had originally won the cricket rights by bidding the highest amount of $ 260 million on 5 September, 2004 amongst other competitors that included ESPN Star Sports ($ 230 million), Indian pubcaster Prasar Bharati ($ 150 million), Sony Entertainment TV India ($ 140 million) and Dubai-based Ten Sports ($ 115 million).

    Subsequently, as a drama unfolded revolving around the bidding process and various aspects of it, including technical criteria, Zee committed another Rs 940 million for the development of domestic cricket. ESS too, got into the act and upped the ante with a mind-boggling bid figure of $ 308 million, which Zee subsequently matched to be awarded the rights.

    Then ESS, apart from legally challenging the award of the telecast rights by BCCI to Zee, later approached the Supreme Court seeking legal redressal against cancellation of the bidding process by the cricket board.

  • SC stays Madras HC order on BCCI office bearers

    SC stays Madras HC order on BCCI office bearers

    NEW DELHI: The Indian cricket board can function as usual as the Supreme Court today stayed a Madras High Court order restraining office-bearers from taking over the board.

    But the apex board also kept cricket board’s past chief Jagmohan Dalmiya on the back foot by restraining him from becoming the board’s patron-in-chief.

    A bench, comprising Justices N Santosh Hegde and SB Sinha, felt that prima facie the high court did not act properly by passing the order restraining the newly elected board while entertaining a review petition filed by Netaji Cricket Club (NCC), the petitioner before the high court, agencies reported today.

    The Bench noticed skeletons tumbling out of the cupboards as NCC pointed out serious irregularities in the recent elections of the Board and observed that “if we are satisfied, we may order holding of fresh elections for the board.”

    After hearing the Board of Control for Cricket in India, Delhi District Cricket Association (DDCA), NCC and DC Agashe, representing the Maharashtra Cricket Association, the bench fixed 26 October for final hearing on the petitions and passed an interim direction staying the Madras High Court order.

    Taking into account alleged irregularities in the election of Ranbir Singh Mahendra as the board president and the apprehension that Dalmiya would become patron-in-chief of the board, the Bench said that “in the meanwhile, Dalmiya is restrained from getting elected/appointed as the patron-in-chief.”

    The BCCI had filed a Special Leave Petition (SLP) in the Supreme Court on Saturday challenging a Madras HC order restraining newly-elected board officials from functioning and the appointment of Supreme Court judge S Mohan as its interim administrator.

    The BCCI in its SLP had contended that if the high court order was implemented, it would bring Indian cricket to a standstill as even selection of the Indian team for the India-Australia series would not be possible.

    Meanwhile, Justice Mohan filed a report today in the Madras High Court regarding the “treatment meted out to him” when he had gone to the BCCI office in Mumbai to take charge on Saturday. It may be recalled that when Justice Mohan reached the office on Saturday, he was greeted by a locked door.

    “The matter is confidential. But I have filed a factual report,” the Press Trust of India filed from Chennai quoted Justice Mohan as saying.