Sony to return but with conditions
Sony Pictures Networks has shown an interest in competing for TV/Radio and digital rights but wants the cricket board to also provide territorial rights including over Sri Lanka to the successful bidder.
Sony, who is Sri Lanka Cricket’s existing rights partner, has made two other requests contingent to it placing its bid. One of its earlier concerns was taken positively by SLC which responded by combining TV/Radio broadcast rights with digital broadcast rights when floating the tender again earlier this month. In a letter to SLC, Sony said that, by combining these, the board will be on a better footing to attract good value.
“The media platforms have converged and the distribution of television channels is undertaken on internet and mobile,” says a letter from Ashok Nambissan, General Counsel for Sony, on March 9, 2020, to the SLC Chief Executive Officer. “This distribution cannot be snapped temporarily while broadcasting SLC matches. This has the potential to erode the commercial value of media rights which a potential broadcaster might be willing to bid for.”
Sony also pointed out that SLC has reserved all broadcast related rights for the territory of Sri Lanka. IN all previous contracts with Sony, only the terrestrial rights were reserved for the territory of Sri Lanka.
“The Indian broadcasters, including us, distribute the India feed of sports channels in Sri Lanka,” Mr Nambissan wrote. “It would be technically difficult if not impossible to decouple what is being broadcast in India.”
“We are the only party with sufficient distribution and experience that can fully unlock the value of the broadcast rights in Sri Lanka– a value that will be reflected in our overall bid,” he pointed out. “We would suggest that SLC should continue to retain terrestrial rights and allow parties to bid for the television/radio rights for the territory of Sri Lanka.”
Sony is also concerned about segregating ground rights which SLC is selling separately.
“The previous SLC ITT completely reverses the priority pyramid for commercial rights holder by providing sponsors protection to the Title and Ground Rights sponsors to the utter detrimental of the TV Rights holders,” he wrote. “This is contrary to all Sports TV Rights norms and contracts around the world. The Title sponsor(s) can be afforded protection via a first right of refusal clause. This is a balanced approach and affords a level playing field for all commercial Rights Holders.”
As previously reported by the Sunday Times, a decision to re-tender SLC broadcast rights was anticipated after Sony Pictures Networks – SLC’s longstanding broadcasting partner – pulled out, leaving it with few options. According to SLC sources, the highest bid for TV and radio broadcasting rights received was US$ 16 million for the three-year cycle. The highest bid for digital broadcasting rights was US$ 6 million. The figures quoted were well below expectation, they said, leading to a decision at the Executive Committee to go to the market once again.