MADRAS, 6 September 2004 — Zee Telefilms yesterday bagged the telecast rights for all cricket matches to be played in India for the next four years for Rs. 14.25 billion ($308 million). Zee beat ESPN STAR Sports to win the telecast rights, the national cricket board said. Hong Kong-based ESPN STAR Sports, however, called the Indian cricket board’s decision “a violation of rules.”
“I am disappointed to learn that Zee had been even offered the cricket rights,” ESPN STAR Sports Managing Director Rik Dovey said in a statement. “The BCCI (Board of Control for Cricket in India) had changed the entire process of bidding in violation of rules set by themselves.” Zee won the rights after it raised its offer to $308 million from the original bid of $260 million.
The company now must deposit at least $20 million with the cricket board in two to three days before the rights are formally granted, said Jagmohan Dalmiya, the board’s president.
“We have invited them to have the rights. Once they deposit the amount, the rights will be theirs,” Dalmiya said. ESPN STAR Sports had offered $230 million in its original bid, but raised it to $308 million during discussions with the BCCI on Saturday, Dalmiya said.
But, because Zee’s original bid was higher than ESPN STAR Sports, the board asked the company if it can match the latest offer from its competitor. And the company agreed, he said.
ESPN STAR Sports, however, rejected Dalmiya’s explanation, saying the board had told the company that it was “very impressed” by its credentials. “Today we were asked to attend a meeting to provide what was described as further clarification. However, when we met the committee we were informed that the BCCI had changed their position from yesterday,” the statement said.
