TV Rights Deal – Key factors
|1.||Existing agreement between Taj TV (Owning company of Ten Sports) Dubai and SLC signed on January 29, 2009 for host broadcasting rights for the period of April 1, 2009 to March 31, 2013.|
|2||The contract was worth US $ 67,874,000.|
|3||SLC was governed at the time by Sports Ministry Secretary S. Liyanagama who acted as the SLC Competent Authority.|
|4||Clause 2.6 of the agreement states that six months prior to the expiry of contract, negotiations should commence between SLC and TAj TV for a period of 60 days to determine the award of rights for the next term.|
|5||If negotiations with Taj TV fails, SLC can negotiate terms with another TV company or can call for tenders.|
|6||SLC agreed to a request by Taj TV to extend the negotiation period to December 31, 2012.|
|7||SLC top officials and Taj TV officials had an official meeting on November 26 at SLC headquarters.|
|8||Taj TV officials draw SLC attention to the clause 4.7 (ii) of the agreement, under which SLC had failed to deliver two Triangular series involving India as scheduled and which have to be delivered to them during the next contract period, even if SLC TV rights go to another party.|
|9||As realistically no other bidders would sign a deal without Indian tours, SLC Secretary Nishantha Ranatunga requests the Minister to get Attorney General’s views on whether to negotiate with Taj TV or call for fresh tenders.|
|10||Negotiation period with Taj TV extended to January 15, 2013.|
|11||Without in-bound Indian tours, TV rights would only fetch a minimal bid.|
|12||The next scheduled Indian tour will happen only in 2017, so signing another four year deal was not financially viable for SLC. So, they opt to go for a seven year period, but even within that period Ten Sports will have the rights of the Indian tour, putting realistically as best candidates|
|13||Any deviation from the previous agreement make Taj TV likely to invoke arbitration, obtain a court stay order for tendering for an Indian series resulting in problems for SLC like cash flow, Legal fees with likely financial damage in a massive scale which financially weak SLC cannot face.|
|14||SLC informs the Minister of these facts.|
|15||At a meeting on January 13, Taj TV agrees to a binding price of US $ 60 million for the TV rights for the next seven years from April 1, 2013 to March 31, 2020.|
|16||Ten Sports also undertakes to meet the production cost which is estimated to total as much as US $ 20 million. SLC estimates the offer by Taj to reflect a 40 percent increase compared with the previous contract.|
|17||Taj TV writes officially to SLC on January 11, 2013 asking for SLC confirmation to the agreement to finalise and conclude the deal by January 15. “We Thank You for the spirit in which these negotiations were carried out” Taj TV tells in their letter to SLC Secretary Nishantha Ranatunga.|
|18||Deputy Solicitor General Viraj Dayaratne informs Sports Ministry Secretary on January 21, 2013 that “it will be improper for the Hon. Attorney General to advice Sri Lanka Cricket at this stage” as the agreement had been approved by private lawyers.|
|19||SLC CEO Ajit Jayasekara informs the AG through the Sports Ministry on February 6, 2013 that one of the two Indian tours has been delivered and only one Indian tour remains to be delivered to Ten Sports.|
|20||On the same day, AG’s department writes to Sports Ministry Secretary to say that the due Indian tours have to be delivered to Taj TV and gives the opinion that SLC can call for bids if the negotiations with Taj have failed.|
|21||Sports Minister Mahindananda Aluthgamage orders SLC on the same day (Feb 6) to call for worldwide tenders as per government guidelines and informs SLC not to include the 2017 Indian tour in the tender.|
kay parker Friday, 08 February 2013 08:23 AM
Any luck for CSN
Kiwi Saturday, 09 February 2013 03:55 AM
These are the results of the Gentlemans' Game becoming a Bookies Game.
Cricket Lover Saturday, 09 February 2013 03:00 AM
CSN got local TV right just for Rs. 100 million (1 mln USD) per year . According to current market rates of advertising CSN can earn 10-15 mln from a one day match. Did minister got advice from Attorney General’s on the matter. Also as the head of CSN how Nishantha Ranatunga in this panel, where his station has direct interest with the bidder when it come to certain production cost sharing.
nicky karunarathna Saturday, 09 February 2013 02:12 AM
Minister is right in this matter. What minister wants open tendering process without any in betweens. So let it do it that way. It clearly shows that some interested parties waiting to get oppurtunity to castigate govt, if something goes wrong - to say govt is corrupt. It was the same stroy with former CJ's affair too. It was opoosition who pointed out that CJ and her hubby both corrupt to the core.
Andare Saturday, 09 February 2013 01:19 AM
Since becoming the sports minister he has told mountain of lies to fool the public. He is mistaken. Jayawewa.
Hoodwink Saturday, 09 February 2013 01:08 AM
This is a typical 7th Grade only qualified mentality.
Kumar Saturday, 09 February 2013 12:00 AM
Something is going to hit the fan via DM iPad app
Dhammika Friday, 08 February 2013 01:24 PM
Mr Minister how come CSN is above the stipulated procedure
The sports ministry is a hindrance to sports
ratakema Friday, 08 February 2013 01:16 PM
Give it to CSN. Ape kastiya ne.
Then no problem. both sideswill be happy and SLC get poorer and who cares?
RMSD Friday, 08 February 2013 01:12 PM
Please give Broadcasting rights to channel just like Channel 9...because they used modern technology..
bryan Friday, 08 February 2013 01:06 PM
any sports these days around the world is a gambling and the stakeholders make huge money often by rogue deals.
Saliya Wickremasuriya Friday, 08 February 2013 12:00 AM
A political match is about start. via DM Android App
Agentky Friday, 08 February 2013 08:16 AM
Only thing is.. both the parties are dogs.. after their own benefits. the general public will have to wake with the fleas.
Vajira Herath Friday, 08 February 2013 08:01 AM
everything in Sri Lanka is controversial, anyway this will also end up with losing huge amount of money for SLC :-(
Countryman Friday, 08 February 2013 07:05 AM
Due to government regulations that help ministers take commissions
Jamis Banda Friday, 08 February 2013 06:52 AM
Sleep with dogs and wake up with fleas !!!!!111
Lobo Friday, 08 February 2013 06:49 AM
This is whats happens when rogues fall out. The shit hits the fan and its us who get sprayed.
Laiya Friday, 08 February 2013 06:23 AM
Whatever said and done, we are sure that all are after their own benefits.
Thummulle_Modawansa Friday, 08 February 2013 06:19 AM
Fair N Square Friday, 08 February 2013 05:41 AM
it's a case of who gets the biggest piece of the pie... SLC was a money spinner and due to the fault of those who ran the institution, its a white elephant.(as it is potrayed)...
Player salaries are NOT paid on time BUT the officials monthly salaries are paid on time. IF the players weren't playing the Officials will NOT have a job to do at SLC....
Clifford Friday, 08 February 2013 05:35 AM
Everyday and every time things will not be in the favor of corruption and malpractices, there will be a end for everything soon.
Bigsam Friday, 08 February 2013 05:36 AM
Come on, if you are contractually obliged to extend with Ten Sports, why are you asking the Minister for permission??
Mason Friday, 08 February 2013 05:25 AM
It appears that the deals are being struck for the benefit of those negotiating and not the viewing public.
Anyway, now who is trying to undercut whom - The Minister wants the Chairman to look a culprit or the other way around ?
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