Walt Disney-controlled Star and Viacom18 won Packages A and B, respectively, in the just-completed round of rights auctions that ranked the cricket league as the second-richest sporting event in the world.
Disney will spend 23,575 crore and Viacom 18 ₹ 20,500 crore to broadcast the games on television and digital media in India until 2027 respectively.
Of course, Viacom18 has won bids in other categories as well, and its projected total payments are over 23,750 crore.
“Both companies are required to provide bank guarantees (BGs) to meet their obligations to the Cricket Board and are in advanced discussions with more than half a dozen lenders to finalize their respective deals,” said a person providing information on the negotiations is.
Disney Star and Viacom18 are jointly arranging approximately 9,600 crore of non-funded guarantees to be redeemed by BCCI if there are problems with payments over the next five years.
Disney star is in talks with at least four banks — BNP Paribas, Deutsche Bank, HSBC and Standard Chartered Bank — over guarantees that will be renewed every year, people with knowledge of the negotiations told ET. This covers approximately 80% of the sum payable for the first year of insurance, which is estimated at ₹4,715 crore.
“For the remaining 20%, the company can turn to US-based lenders — like Bank of America or JP Morgan,” said a second person with knowledge of the negotiations.
Meanwhile, Viacom18 is in the process of finalizing a deal with SBI, ICICI Bank and others
. “These talks are nearing completion,” said a third person with knowledge of the process.
Viacom18 and select banks did not respond to ET’s email inquiries. Disney-Star, BNP, Deutsche, HSBC and Standard Chartered declined to comment.