New Delhi, March 25: The Indian Premier League and Sony entertainment television on Wednesday signed a new nine-year deal worth Rs. 8200 crore.
The deal, which has made Sony the official broadcaster for the lucrative T20 league, will stand till 2017.
Sony had leased the IPL`s subcontinent broadcast rights last year from WSG (India), who had won an original ten-year bid for USD 1.02 billion, and after termination of contract it was speculated that the BCCI`s Twenty20 league would have a new broadcaster for the second season.
“We had agreed on various commercial terms but if we agree to a non-terminable contract, we cannot terminate the arrangement even in case of a serious breach. No one can accept that,” IPL chairman Lalit Modi had told a cricket website.
It is learnt that talks between MSM and the BCCI have resulted in a “full and final” settlement on a new deal that will run for the remainder of the nine-year term the contract has to run with principal rights holder World Sport Group. The parties entered a new agreement after the legal dispute was taken out of court but did not materialise.
The original deal Sony-WSG committed to pay $918 million for the 10 year telecast rights plus an additional $108 million towards marketing and promotion expenses. In that deal, MSM had telecast rights for five years. This has been extended for a further five years.
Sony Max was retained but with a few amendments in the original deal. This was confirmed by highly placed sources after the IPL governing council meeting at the BCCI office in Mumbai on Sunday.
Under the new agreement, MSM will pay the IPL 18 per cent more than the amount in the original agreement and have managed to extend their five-year deal to 10.
Problems first began to appear between BCCI and MSM when Reliance ADAG-owned Big TV, walked out of their Rs 137 crore sponsorship deal and MSM instead signed Airtel Digital as their on-air sponsor for DTH.