STAR India Rescued The Board Of Control For Cricket In India From Crisis
The "popular perception" is that STAR India got the Board of Control for Cricket in India sponsorship deal for int'l and domestic matches cheap at Rs 2 crore ($326,000) a match, "but the other way of looking at it would be that the entertainment network actually bailed out BCCI from a deep crisis," according to Digbijay Mishra of the Indian BUSINESS STANDARD. This "is not the first such crisis" for the BCCI. Earlier in the year, "it saw a drastic drop in insurance cover amount for the cricketing extravaganza, the Indian Premier League." At its peak, the IPL had a cover of Rs 900 crore ($14.7M), but that dropped to Rs 550-600 crore ($90M-98M) "owing to the lack of interest of advertisers in IPL and the continuous erosion of credibility." The reason for the current blow to the BCCI "is clearly the recent controversies it has found itself in." Former BCCI President Jagmohan Dalmiya said that the reasons for such a crisis "were more than one." Dalmiya said, "There is more than one reason for this situation. Of course, the recent controversies are there, playing a key role for fueling such crisis." According to an analyst at Angel Broking, "economic slowdown and too much of cricket all round the year has made matters worse for the richest cricket controlling body in the country." The analyst said, "Controversies have had the most impact, but I think, there is too much of cricket going on through out the year. People are not even aware of the participating countries or clubs at times." For STAR India, the deal could not have "worked out better." Apart from getting the main deal done at a base price, "it has advantages like it can sell the on-ground rights, pitch branding and on its channels" (BUSINESS STANDARD, 10/5).