Why the current ICC broadcast rights are unsustainable

The development around JioStar’s ultimatum to the International Cricket Council (ICC) that it cannot service the remaining two years of the media rights contract due to “deep financial losses” conveys many things, but certainly not them exiting the deal.

Like conjoined twins, the federation and the broadcaster have no choice but to follow the unique and challenging reality of their existence — they can neither afford to live with each other nor live without each other.

On one hand, cricket has only one major broadcaster in Jio Star, and on the other, cricket is JioStar’s only recourse if they need to keep their subscription game going. So, nobody’s going anywhere.

Unsustainable prices

In 2023, when Disney India bought the ICC media rights at $3.04 billion, there were a total of 179 matches for the taking over the four-year cycle.

Technically speaking, Disney India bid Rs 138.7 crore per game. The cost of a single IPL game at today’s global broadcast rights value is Rs 114 crore, which JioStar has been finding it difficult to sustain. Here, we’re talking about a tournament played at India prime time, involving top Indian and global cricketers, and is perched right up there among the global sports properties. Then, how exactly at Rs 138 crore per game will the broadcaster ever be able to sustain the value of ICC cricket rights? For the record, of the 179 matches, India will play only 28 games plus knockouts, if they qualify.

In 2024, when Jio was taking over Disney India, did they not know the repercussions of the deal? They did, and that is the only reason why Disney exited the India market at a discounted value. Today, having acquired those rights at a discount, Jio expects the ICC to further renegotiate, only because they know there’s no other broadcaster in the fray.

All eggs in one basket

Today, if JioStar decides to stay away from cricket rights, cricket federations – read ICC, IPL, BCCI – simply do not have a Plan B.

In fact, their Plan B will be to renegotiate and come back to Plan A, which is to stick with JioStar at a discounted price. It is precisely this lack of choice that leaves the members of the ICC with no other option but to be at the mercy of the current broadcaster. The ICC has two major events coming up in 2026 and 2027 — the men’s T20 World Cup, followed by the men’s 50-over World Cup. It is to be waited and seen if the ICC members will sit across the table with JioStar ahead of these events to guarantee them a better pricing in the next rights cycle to allow the cricketing caravan to keep moving. That is clearly the only end game to this whole exercise.

What next?

The ruckus is not lost on the IPL franchises. In fact, ever since the mega merger between Jio and Disney happened, they had seen this coming. When a brand valuation and consultancy firm like Brand Finance comes out with a report that says IPL’s 2025 brand value is down by 20% — from $12b to $9.6b — one can pin it down to the broadcast rights, IPL’s biggest revenue source. In 2022, multiple bidders had fought tooth and nail to grab IPL rights, and it brought in a cash influx of Rs 48,300 cr. In 2026-27, only two broad casters will be in the fray (and one of them only for TV). What kind of a hike can the industry expect? The IPL rights stood at a billion in 2008, got sold for $2.6b in 2017 and got resold for $6.5b in 2022.

While franchises are wondering what next, the industry is speculating a five to 10% hike, no more. That’s the long and short of the media rights story.