|
|
| October 23, 2005 | Sunday | Ramzan 18, 1426 |
PCB has devalued England series: TWI official
KARACHI, Oct 22: The present ad hoc committee of the Pakistan Cricket Board (PCB) had underestimated, from marketing point of view, the value of the forthcoming home series against England, according to Cdr Malik Arshad Gilani, Chief Area Coordinator of Trans World International (TWI).
Gilani disclosed that TWI, which had a long and for PCB a very profitable association upto 2003, had declined to bid for the In-Stadia rights for the England series and the Bundled Rights (which covers Pakistan’s home series between Jan 2006 and March 2008).
“The reasons (for TWI’s refusal) were the very onerous condition of both the bids. Even if a particular bidder had made the highest bid and was above the ‘reserved price’, he would need to re-bid once again with all those companies that had submitted lower offers,” he explained.
Thus a company, he further went on, could possibly get a second chance whilst providing lower bid bonds. As it happened, the highest bidder for the England series In-Stadia rights did not initially get the contract but was made to re-bid.
In the re-bid another company ostensibly made a higher bid but then failed inspite of all leeway, surprisingly, to provide the financial guarantees. The original company then ended up in an auction situation, he added.
“It was felt this that it was not a level playing-field and did not justify the time and effort needed to expend in providing a bid.”
According to the procedure laid down by the PCB, if the reserve price has been met by one bidder, this bidder be declared successful.
Further, if the reserve price has been met by more than one bidder, those bidders who have bid at least the reserve price shall qualify for round two of the bidding to be held 24 hours after the end of round one, during which the bidders will be required to again submit sealed bids to the PCB who will open the sealed bids and announce the successful bidder, And in case of a tie, there will be an open auction between such bidders.
Gilani lamented the PCB’s procedure of bidding which as can be noted from the above is long-winded.
“One of the conditions of the bidding was that the bidder had no rights at all. Even if the bidder had made their best bid, provided all the documents and guarantees, the PCB could award the contract to anyone it chose without giving any justification.”
According to PCB, the cricket board reserves the right to accept or reject any or all bids in discretion and the board is neither obliged to provide reasons for accepting or rejecting such bids nor is it obliged to accept the highest bid.
Moreover, the PCB reserves the right to vary and amend these bid documents or the terms and conditions contained herein at any stage or to cancel the entire bidding process and privately negotiate any or all rights available and no bidder will have any claim against the PCB.
The TWI, Gilani further stated, had requested a few days’ extension for the bundled rights for five series (India, Australia, West Indies, South Africa and Zimbabwe) to be able to put in a considered and competitive bid. “It was felt that as even the England series had not being decided, there was some time available for the second bid. Unfortunately, this request was denied.”
Gilani added that bundling of rights is exercised by rights owners so that lower value tours are covered by the more profitable ones. However, to achieve best results bidders should have the right to bid for any one or more rights. In this manner the rights owner can choose from the highest of each category. The PCB surprisingly had required bidders to bid for all or nothing.
Gilani revealed that whilst TWI was individually able to raise US$4 million for only the title sponsorship of the last Indian tour, the present bidding system has only raised about $1 million for all the rights i.e. title sponsorship, co-sponsorship and In-Stadia rights for the England tour.
“This is considered to be surprising when one considers that since the India’s tour of Pakistan in 2004, the advertising values have actually gone up. The rise in the value Indian and UK rights can act as an indication in this direction. England is a country that has a bigger or an equal advertising market to India and cricket has taken a huge jump in popularity in recent times,” he pointed out.
The last India tour (three Tests and five ODIs) grossed some $6.5 million. Some two to three years later five tours inclusive of India (a total of 15 Tests and 25 ODIs) have only raised around US$8 million.
|
|
