GECs
Sony withdraws from ICC rights bid process
MUMBAI: Sony Entertainment Television India, the “incumbent” holder of telecast rights for ICC cricket in the subcontinent, has withdrawn from the bidding process for the next round of bids, for which the deadline for bids submission is 10 November.
Up for grabs are the audio-visual rights for 18 ICC tournaments starting from the second half of 2007 till the World Cup in 2015. The last agreement began in 2000 and ends with the ICC Cricket World Cup 2007 in the West Indies next March.
The Sony Pictures Television International (SPTI) board was unwilling to bankroll the bid, which was seen as being too fraught with financial risk.
Confirming the developments to Indiantelevision.com, Set India CEO Kunal Dasgupta had this to say: “We believe that the terms (of the tender) are quite onerous. We do not want to put our company at risk so we are constrained to hold back our bid. But that does not take away our right to enter into post-bid arrangements with the winning bidders.”
Dasgupta made it clear that Sony did not want to get sucked into a bidding frenzy similar to what was witnessed in February when Harish Thawani’s Nimbus Communications walked away with the telecast rights to India cricket after putting in a bank-breaking $612.18 million composite bid. Nimbus’ bid was nearly $ 200 million higher than the base price of $425 million that had been set by the Indian cricket board.
A point also worth noting is that Sony’s composite bid for the BCCI rights, made through Set Satellite Singapore Pte, was $478 million for the global rights and $397 million for the India territory.
AGAIN A FACE-OFF BETWEEN MURDOCH AND CHANDRA?
With Sony out of the reckoning, it could well be the same two who finally face off for the current block of cricket property, with Subhash Chandra squaring off against one time ally and now bitter foe Rupert Murdoch. It was Murdoch who won that particular skirmish so there will be some interesting history at play when the bids are opened at the ICC’s headquarters in Dubai tomorrow.
To rewind to 1999, the News Corp controlled Global Cricket Corporation (GCC) had paid out $550 million to secure the rights after a fierce bidding war with Chandra’s Zee Telefilms. At the time of bidding, the GCC was a 50:50 JV between News Corp and World Sport Nimbus (itself a 50:50 JV between Nimbus and the UK-headquartered World Sport Group). News Corp subsequently bought out WSN’s stake in the JV.
The GCC had sold the satellite rights for the Indian subcontinent territory to Sony Entertainment Television India for $ 208 million.
One player that will definitely not be in this particular game is Nimbus. It has been taken out of the equation by the News Corp distribution deal. And neither, for that matter, will News Corp be bidding as a separate entity from ESPN Star Sports.
Market speculation on how high the bidding will go this time round ranges from at least a billion dollars to even crossing $ 1.7 billion.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
