In one after another dramatic turns of events, MSM finally wins back the IPL deal. The price for it? A cool Rs3500 crore! The Bombay High Court was spared pronouncing its verdict; before that the two parties have made out- of- the- court settlement, where the IPL chief made the entertainment giant cough up these extra crores. The followers of cricket are happy that they are spared the bizarre drama that has been taking place for over a month between Indian Premier League and the entertainment company. With IPL deal in MSM’s kitty, you have to tune your television to SET Max channel for catching up all 59 cricket matches live on your television screen.

(Read Cricket360 related article "Sony Would Telecast the IPL After All")    

Last year’s contract that IPL had signed with WSG-Sony for $1.026 billion for 10 years included additional $108 million for marketing and promotion. Only a week ago, this 10 year contract was terminated by BCCI on the ground of two-pronged violation of the contract by MSM - first on the quality of broadcasting and secondly on ground sponsor rights. In response, MSM moved the court questioning the legal validity of the termination. The court withheld the decision asking more documents from both side. Meanwhile, the two parties were trying to reach a common point of agreement so that the matter settles out of the court itself. When MSM offered to pay a few extra crores, the Indian Premier League was quick to accept.

MSM which was reported to make huge profits from the Indian Premier League in is inaugural season, was ready to give in the demands of IPL to avoid the termination of the contract. The present deal, that makes MSM and WSG the official broadcaster for nine years - upto 2017 - cost the company a whopping Rs. 8,200-crore. Last year the company signed the agreement for a 10-year period and the price was nearly Rs. 4,700 crore. MSM though it better to pay the extra than facing termination simply because much was at stake for Sony in its relation with IPL. Already 70-80 per cent air-time deals with advertisers have been signed, crores already spent in promotions and marketing initiatives.

(Read Cricket360 related article "BCCI – MSM Deal Falls Through")

 

However, IPL gained hugely from the renewal on two aspects; first there was a windfall of money and secondly, it saved IPL the trouble of finding a new broadcaster on an exceptionally short notice. One can not help smelling the fish in the whole incident; the industry insiders hint that it might be a shrewd tactics on the part of cricket board and Indian Premier League to extort some extra cash from the broadcaster that was reported to cut big profits from previous year’s telecast of live IPL cricket.

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3.25 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."

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