Cricket: Indian decision hits cash flow

A recent decision by the Indian government is set to have a far-reaching and potentially crippling effect on cricket here and around the world.

They have issued a directive of intent that states all matches involving India, and other significant cricket matches including World Cup and Champions Trophy matches, must be screened on Doordarshan, India's state-owned, free-to-air broadcaster. All indications are this 'intention' will be ratified into law soon.

New Zealand Cricket (NZC) chief executive Martin Snedden said the decision was "likely to have a significant effect here and around the world". New Zealand, and most national cricketing bodies, make significant revenue by selling the rights to matches into the insatiable cricket markets in Asia, most particularly India.

NZC has a lucrative four-year contract with pay-TV provider ESPN-Star Sports to screen all their matches through Asia. Although Sky Television owns the broadcast rights in New Zealand, part of NZC's deal with Sky is that they own the rights to on-sell the product, which they do through ESPN in Asia and Foxtel in Australia among others.

The prized contract with ESPN runs out after the 2006-07 home season and Snedden said it will be very hard to reach a comparable deal if exclusivity can't be promised.

"With the Indian government saying to ESPN that they have to share the feed, they are going to turn around and say 'OK, we're not buying exclusive rights here', so naturally that's going to have an effect on negotiations.

"It'd be like the New Zealand Government saying to Sky that, irrespective of the deals they've signed to broadcast all All Blacks and Black Caps matches live, they also have to be shown on TV One."

So concerned is the International Cricket Council (ICC), it held an emergency meeting in Karachi on Thursday. Sir John Anderson who is, ironically, the newly-appointed head of state broadcaster Television New Zealand, represented NZC.

Although he hadn't had a chance to speak to Anderson as he was in transit, Snedden said the fact an emergency meeting was convened showed how seriously the ICC was taking the matter.

"I wouldn't like to speculate on how much it would cost us but it would be substantial," ICC president Ehsan Mani said from Karachi.

ESPN has hit out at the decision. Managing director RC Venkateish told India's Hindustan Times: "We will have to look at what is notified before moving further on the issue. Legal action, if at all required, will be the very, very last option."

Snedden said it was too early to speculate about the financial hit NZC could take but admitted that smaller countries like New Zealand, Sri Lanka, Bangladesh and the West Indies were less equipped to handle big losses than the likes of Australia and England.

"I wouldn't have a clue yet [as to the extent of the financial hit] until there are some significant deals done but it's obviously something we're very concerned about.

"The revenue we generate directly out of Asia is significant enough but it also effects the dividends we receive from the ICC from tournaments like the World Cup and Champions Trophy. The value for the rights to broadcast those will obviously be affected too."

If there is a silver lining on this cloud it could be the proposal that Doordarshan pay 75 per cent of all advertising revenue generated during cricket matches back to the pay-TV provider.

- HERALD ON SUNDAY