ICC may have to reduce its media rights value as firms focus on profitability

The International Cricket Council (ICC) may have to reduce its media rights value within India as broadcasters and streaming platforms remain cautious of large investments and focus on profitability, according to industry experts.

- ROSHNI SHEKHAR

They said JioStar’s reasoning for exiting the current contract with ICC is the financial burden it has from the deal while the company has already kept a huge amount under provisions for expected losses from such engagements. The company had more than doubled its provisions for expected losses from onerous sports contracts in the 2024-2025 period to ₹5,760 crore, according to a media report. While JioStar is obliged to continue its current contract with ICC till 2027, industry experts noted that India’s largest media conglomerate will look to negotiate the deal value or test if the ICC reduces the media rights value for other players in the industry. ICC did not respond to the email sent by Business Standard on whether the cricket body has reached out to other broadcasters for media rights starting from next year. Meanwhile, a person aware of the development said that JioStar is bound by the agreement, and that the company intends to continue its contract with ICC for the remaining years.

Santosh N, managing partner, D&P Advisory, said that they had expected this to happen as JioStar is working on reducing its losses from all aspects.