SPORTS
India Sports Channel Opportunity
September 25, 2009
1
Executive Summary

SPT currently has 3 sports properties (IPL Cricket, NZ Cricket, FA Cup Soccer)
that air on MAX and PIX; we could better leverage these on a dedicated sports
channel
–
–

BCCI Cricket rights for 4 years are up for bid in November and would be the
cornerstone of a sports channel; we would receive an option for an additional 4
years
–
–

Sports is an opportunity to build equity in a new channel and reach an attractive demographic
(youth / males and southern viewers)
Our sports properties on MAX and PIX (film channels) dilute these brands and would be more
valuable on a sports channel
BCCI Cricket rights include all international cricket matches that are played in India
Working assumption is that the bidding range would be between $350MM and $420MM for
first four years
Based on preliminary analysis, we recommend bidding for BCCI rights with the
intent of launching a Sports channel in August 2010
–
–
–
If bid is won, 3 existing sports properties would also be moved to new channel
Incremental investment in other “filler” properties, G&A, headcount, and marketing
Key economic assumptions (BCCI price, cash flow timing) are preliminary but imply modest
2
incremental profits
MSM India has begun to turnaround
SET
 SET has almost doubled its rating
from GRP’s in the mid 70’s to over
130 since the management change
in February
 SAB during the same period has
grown a further 50% in rating and in
August had the highest advertising
sales in its history
 MAX is still the number 1 movie
channel and has consistently led
amongst the movie channels for the
last 6 weeks
 IPL Sales for Season 3 are
encouraging
– Signed a presenting sponsor for $10.5
MM and is one of the largest contracts
executed in India
– 4 associate sponsors on board for an
average of $6MM each
– 25% of budget sold and expect 60% of
budget to be sold by December
140
120
100
80
60
40
20
0
Feb
Mar
Apr
May
Jun
Aug
Sep
wk 1
Sep
wk 2
Sep
wk 3
Aug
Sep
wk 1
Sep
wk 2
Sep
wk 3
SAB
80
70
60
50
40
30
20
10
0
Feb
Mar
Apr
May
Jun
Source: TAM Media Research: All India CS 4+
3
Strategic Rationale






Opportunity for SONY to create a billion dollar asset (detail on page 7)
Sports channel will help ensure continued growth in distribution revenues
– Easier to monetize distribution on a sports channel than on MAX
– The Sports channel will reinforce bouquet strength and increase diversity making
“One Alliance” a must have / reduce reliance on Colors
The sports channel will create a large revenue opportunity for MAX
– Shifting of IPL to the sports channel will create opportunity for additional ad revenue
on MAX
– Eliminate confusion of MAX positioning which will only grow as IPL teams expand
The sports channel timing is right
– Major rights (BCCI) are coming up for bid
– IPL is likely to increase the number of teams to 10 (from 8) from Season 4 which
will add 34 additional matches
The sports channel can mitigate downside risk to IPL
– Rating declines, if any, can be offset with bonus spots across all properties
– The sports channel will help in IPL brand building
– Will help de-risk the entire network
The sports channel allows for better monetization of NZ cricket, FA Cup and IPL
4
Overview of BCCI Rights

Board of Control for Cricket in India (“BCCI”) is the governing body of Indian
cricket

BCCI tentatively plans on issuing an Invitation to Tender (“ITT”) in October
2009 with the winner being announced in early November 2009

MSM has the opportunity to bid for media rights for India covering all
international country matches and domestic cricket matches played in India
(ODI’s, test matches and Twenty/20)
–
Media rights include Television (Cable, Satellite & Terrestrial)
–
We assume the four year BCCI package would include 55 ODIs, 22 tests, 10 T20s’s resulting
in approximately 50 days of International cricket each year. In addition there are
approximately 110 days of domestic cricket each year

The BCCI rights are for 4 years however MSM will obtain an option for an
additional 4 years with a 10% license fee increase

The BCCI international cricket season extends from September to March
and the domestic cricket goes from September to June

Bank draft of $15M - $30M tender security deposit will be required in FY 10
5
Sports Channel Economics (Mid Case)



MSM expects the bidding range to be between $350 MM and $ 420 MM
Additional rights for the second four years would be 10% higher; no option fee assumed
Ad revenue assumptions have been benchmarked against IPL / current rates commanded by Neo Sports
– Ad rates - ODI: Rs. 275k per 10 seconds vs. IPL Season 2: Rs. 370k per 10 seconds (ODIs for Pakistan
are at Rs. 375k per 10 seconds)
– Sell out - ODI: 96% vs. IPL Season 2: 82%
The Sports channel would go into B3 and be sold through TheOneAlliance
Cash assumptions are 25% of BCCI license fee paid one month in advance and 75% 3 months after the
tournament ends
Superna please align ad rates mentioned in text mid case


Low Case (Values in $MM)
Monthly
Annual
Before Terminal
Bid Level
EBIT
DWM
NPV
IRR
w/ Terminal Value
NPV
IRR
Before Terminal
EBIT
DWM
NPV
IRR
w/ Terminal Value
NPV
IRR
4 years
$ 350 MM
35
(31)
2
14%
123
82%
35
(15)
8
64%
134
142%
$ 375 MM
10
(45)
(17)
n/a
34
38%
10
(15)
(10)
n/a
42
88%
$ 400 MM
(15)
(64)
(36)
n/a
n/a
n/a
(15)
(15)
(29)
n/a
n/a
n/a
$ 420 MM
(36)
(80)
(52)
n/a
n/a
n/a
(36)
(22)
(44)
n/a
n/a
n/a
$ 350 MM
306
(31)
142
59%
571
79%
306
(15)
151
105%
594
119%
$ 375 MM
254
(45)
108
45%
491
68%
254
(15)
119
83%
514
102%
$ 400 MM
201
(64)
75
33%
411
58%
201
(15)
87
61%
434
87%
$ 420 MM
159
(80)
48
24%
347
50%
159
(22)
61
44%
370
75%
8 years
Note: For purpose of NPV and IRR of incremental investment in BCCI and channel infrastructure, 4 year calculation applies 13X
multiple to FY14 EBITDA; 8 year calculation applies 13x to FY18 EBITDA.
6
Sports Channel Economics (High Case)



MSM expects the bidding range to be between $350 MM and $ 420 MM
Additional rights for the second four years would be 10% higher; no option fee assumed
Ad revenue assumptions have been benchmarked against IPL / current rates commanded by Neo Sports
– Ad rates - ODI: Rs. 275k per 10 seconds vs. IPL Season 2: Rs. 370k per 10 seconds (ODIs for Pakistan
are at Rs. 375k per 10 seconds)
– Sell out - ODI: 96% vs. IPL Season 2: 82%
The Sports channel would go into B3 and be sold through TheOneAlliance
Cash assumptions are 25% of BCCI license fee paid one month in advance and 75% 3 months after the
tournament ends
Superna please align ad rates mentioned in text with high case


Low Case (Values in $MM)
Monthly
Annual
Before Terminal
Bid Level
EBIT
DWM
NPV
IRR
w/ Terminal Value
NPV
IRR
Before Terminal
EBIT
DWM
NPV
IRR
w/ Terminal Value
NPV
IRR
4 years
$ 350 MM
35
(31)
2
14%
123
82%
35
(15)
8
64%
134
142%
$ 375 MM
10
(45)
(17)
n/a
34
38%
10
(15)
(10)
n/a
42
88%
$ 400 MM
(15)
(64)
(36)
n/a
n/a
n/a
(15)
(15)
(29)
n/a
n/a
n/a
$ 420 MM
(36)
(80)
(52)
n/a
n/a
n/a
(36)
(22)
(44)
n/a
n/a
n/a
$ 350 MM
306
(31)
142
59%
571
79%
306
(15)
151
105%
594
119%
$ 375 MM
254
(45)
108
45%
491
68%
254
(15)
119
83%
514
102%
$ 400 MM
201
(64)
75
33%
411
58%
201
(15)
87
61%
434
87%
$ 420 MM
159
(80)
48
24%
347
50%
159
(22)
61
44%
370
75%
8 years
Note: For purpose of NPV and IRR of incremental investment in BCCI and channel infrastructure, 4 year calculation applies 13X
multiple to FY14 EBITDA; 8 year calculation applies 13x to FY18 EBITDA.
7
Creation of Equity Value

Launching a dedicated Sports Channel represents the opportunity to establish a channel that
could exceed $1 Billion in long-term value
Public Indian Comparables
Values in $MM
Enterprise
EBITDA (1)
EV/EBITDA
$2,382
$163
14.6X
$114
$14
8.1X
$1,915
$122
15.7X
Value
Sun TV Limited
Ten Sports
Zee Entertainment Ent.
Average
Value Implications
12.8X
FY17 EBITDA (2)
Multiple
$350
$121
13.0X
$1,574
$375
$112
13.0X
$1,460
$400
$104
13.0X
$1,347
$420
$97
13.0X
$1,256
Bid Level
Average
Potential Risk on Renewal (3)
Value
$1,409
($30-$50)
13.0X ($390-$650)
Risk Adjusted
(1) Sun TV Limited and Zee Entertainment based on 2009 EBITDA projections; Ten Sports based on 3 year forward average EBITDA
as of the time that Zee Entertainment acquired 50% of company (11/13/2006).
(2) FY17 demonstrates high profitability in a year with BCCI and IPL both highly profitable.
(3) Risk of decreased EBITDA if properties are renewed at higher cost, not renewed, or replaced with lower value properties.
$759-$1,019
8
Risks and Mitigators
Risk
Mitigation
Cost of acquisition of key sports
properties (BCCI)
Limit bid amount
ODI format for cricket may see a
decline in viewership
Conversion of One Day into T-20 –
value remains unchanged
Distribution revenues may be
impacted with adverse regulatory
environment
Current government favors less
regulation
Current lack of experience in
managing a sports channel
Talent identified to manage this
shortfall
Perpetual need to acquire
increasingly expensive sports rights
to program the channel
Cricket is the main stay of the
channel and both key properties are
secure for 8 years
9
Schedule
Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Time Band
Midnight
FA Cup
FA Cup
Prime
BCCI
IPL
BCCI
Evening
Afternoon
Mid-morning
BCCI Domestic
Morning
NBA
Early Morning
NBA
PGA / Equivalent
Night
NZ
NZ
NZ
IPL
BCCI
BCCI Domestic
EPL / FA cup
NBA
PGA or Equivalent
NZ
10
Two new IPL franchises

BCCI have informally signaled their intent to add 2 new teams to the IPL
competition from season 4 onwards
–
This results in 34 extra matches within the competition up from the current 59/60

MSM have the option within their contract to pick up the broadcast rights to
these extra matches at a pre determined fixed price

The total License cost to MSM of picking up the option would be $400m from
season 4 through season 9 (includes an assumed fee for the 3rd/4th place play
off)
–
–

$29m of non License fee costs would also need to be incurred as a result of the extra matches
MSM will try to negotiate this predetermined License fee cost down at the appropriate time
Due to the increase in adsales inventory and the mix of matches skewing
unfavorably to daytime from prime, it is anticipated that MSM will not be able to
recover all of the extra License fees through increased revenues. $357m in extra
revenue is forecasted across the period
–
This creates an EBIT shortfall of $72m

However, unconnected to the two new teams, non License fee cost savings
have been identified of $89m that more than cover the EBIT shortfall

Factoring a decrease in business as usual adsales on MAX, of $14m, as a result 11
of airing more IPL matches, the total EBIT impact of the changes is $3m
Two new IPL franchises
 It is both strategically and financially important for MSM to
control all of the IPL broadcast rights in India
–
–
Marketplace and viewer confusion if the IPL was split across broadcasters could reduce the value of the property for all
participants
It is anticipated that MSM revenues would drop $178m across season 4 to season 9, compared to current forecast levels,
if MSM do not have the rights to the new teams
• Revenues would drop on a per match basis from current levels no matter who was selling the inventory
 MSM is $102m better off in EBIT terms exercising the option
than letting a competitor secure the rights to the extra matches
Summary of Impact of Two New Teams versus Current Forecast
Season 1 through Season 9 Totals ($'ms)
If MSM take
two teams
If MSM don't take
2 teams
Revenue impact of 2 teams
357
(178)
Cost impact from 2 teams
(429)
(10)
Impact on MAX
(14)
0
Impact of new deal
(86)
(188)
Cost savings
89
89
3
(99)
Incremental EBIT compared to
current ultimate
Note: also includes impact of 3rd/4th place playoff
12
Estimated Timelines
BCCI / Sports Channel
IPL: 2 Additional Teams
Oct 7
GEC Meeting (preview for Oct 28 GEC MTG)
Now
Analysis / Informal discussions
Oct 14
SPE Business Meetings (NY)
May 2010
Investment Committee Meeting (Tokyo)
Oct 17
Investment Committee Application Due
May 2010
GEC Meeting (Tokyo)
Oct 23
Investment Committee Meeting (Tokyo)
Jul 1 2010
BCCI issues formal notice to MSM
Oct 3rd wk
BCCI issues Invitation to Tender
Jul 2010
Sony Corporation Board Meeting (Tokyo)
Oct 28
GEC Meeting (Tokyo)
Sep 15 2010
MSM responds to BCCI re: 2 add’l teams
Early Nov
MSM submits BCCI bid
Mid Nov
BCCI announces bid winner
Note: Items in italics are best estimates
13
Appendix Mid Case
14
Scenario 1: Incremental Channel Economics
BCCI License Fees at $350MM
INCREMENTAL SPORTS CHANNEL ECONOMICS
Low $350
FY10
FY 11
FY 12
FY 13
-
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
Total
Increased inventory on Max
-
5
7
8
9
10
11
12
RODP Billing (bonus spots on chnl)
-
1
1
1
1
1
1
2
2
-
13
75
10
Net BCCI Advertising
-
59
68
82
100
78
93
156
124
-
760
Net BCCI Distribution
-
-
14
30
35
42
48
56
66
77
Total Revenue
-
73
103
125
151
137
161
234
215
369
License Fees
-
(60)
(81)
(96)
(117)
(71)
(83)
(123)
(112)
-
Expenses
-
(10)
(15)
(18)
(20)
(20)
(22)
(25)
(29)
-
EBITDA
-
3
7
11
14
45
55
85
73
13
306
Inflows
-
37
95
116
139
145
150
198
224
101
1,206
License Fees
(15)
Outflows
-
Cash Flow
Cume NCF
13
1,213
(743)
(160)
-
1st 4 years
(3)
(73)
(84)
(99)
(99)
(80)
(92)
(109)
(87)
(743)
(12)
(19)
(23)
(26)
(26)
(18)
(23)
(26)
(9)
(183)
(15)
21
3
10
14
20
51
82
88
5
280
(15)
6
9
19
33
52
104
186
275
280
Monthly
Total EBIT
Annual
Full 8 years
Monthly
34.8
34.8
Total EBIT
306.5
(30.7)
(15.0)
DWM
(30.7)
NPV before Terminal Value
$2.0
$8.5
NPV
IRR before Terminal Value
NPV with Terminal Value (1)
$122.8
DWM
IRR with Terminal Value
(1)
14%
81.6%
64%
$141.5
$134.3
IRR
NPV with Terminal Value (1)
142.3%
IRR with Terminal Value
(1)
59%
$571.0
79.1%
(1) For purpose of NPV and IRR of incremental investment in BCCI and channel infrastructure, 4 year
calculation applies 13X multiple to FY14 EBITDA; 8 year calculation applies 13x to FY18 EBITDA.
Annual
306.5
(15.0)
$150.6
105%
$594.0
118.7%
15
Scenario 2: Incremental Channel Economics
BCCI License Fees at $375MM
INCREMENTAL SPORTS CHANNEL ECONOMICS
Low $375
FY10
FY 11
FY 12
FY 13
-
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
Total
Increased inventory on Max
-
5
7
8
9
10
11
12
RODP Billing (bonus spots on chnl)
-
1
1
1
1
1
1
2
2
-
13
75
10
Net BCCI Advertising
-
59
68
82
100
78
93
156
124
-
760
Net BCCI Distribution
-
-
14
30
35
42
48
56
66
77
Total Revenue
-
73
103
125
151
137
161
234
215
369
License Fees
-
(64)
(86)
(103)
(125)
(76)
(89)
(132)
(120)
-
Expenses
-
(10)
(15)
(18)
(20)
(20)
(22)
(25)
(29)
-
EBITDA
-
(1)
1
4
6
40
49
76
65
13
254
Inflows
-
37
95
116
139
145
150
198
224
101
1,206
License Fees
(15)
Outflows
-
Cash Flow
Cume NCF
13
1,213
(795)
(160)
-
1st 4 years
(4)
(78)
(90)
(106)
(106)
(86)
(99)
(117)
(93)
(795)
(12)
(19)
(23)
(26)
(26)
(18)
(23)
(26)
(9)
(183)
(15)
20
(2)
4
7
13
46
76
81
(1)
227
(15)
5
3
6
13
26
72
148
228
Monthly
Total EBIT
Annual
Full 8 years
Monthly
9.7
9.7
Total EBIT
253.8
(44.9)
(15.0)
DWM
(44.9)
NPV before Terminal Value
($17.2)
($10.1)
NPV
IRR before Terminal Value
NPV with Terminal Value (1)
$33.5
$42.0
IRR
NPV with Terminal Value (1)
38.0%
87.5%
IRR with Terminal Value
DWM
IRR with Terminal Value
(1)
n/a
n/a
$108.2
(1)
45%
$491.0
68.0%
(1) For purpose of NPV and IRR of incremental investment in BCCI and channel infrastructure, 4 year
calculation applies 13X multiple to FY14 EBITDA; 8 year calculation applies 13x to FY18 EBITDA.
227
Annual
253.8
(15.0)
$118.6
83%
$513.8
102.3%
16
Scenario 3: Incremental Channel Economics
BCCI License Fees at $400MM
INCREMENTAL SPORTS CHANNEL ECONOMICS
Low $400
FY10
FY 11
FY 12
FY 13
-
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
Total
Increased inventory on Max
-
5
7
8
9
10
11
12
RODP Billing (bonus spots on chnl)
-
1
1
1
1
1
1
2
2
-
13
75
10
Net BCCI Advertising
-
59
68
82
100
78
93
156
124
-
760
Net BCCI Distribution
-
-
14
30
35
42
48
56
66
77
Total Revenue
-
73
103
125
151
137
161
234
215
369
License Fees
-
(69)
(92)
(110)
(133)
(81)
(95)
(141)
(128)
-
Expenses
-
(10)
(15)
(18)
(20)
(20)
(22)
(25)
(29)
-
EBITDA
-
(5)
(5)
(3)
(2)
35
43
67
57
13
201
Inflows
-
37
95
116
139
145
150
198
224
101
1,206
License Fees
(15)
Outflows
-
Cash Flow
Cume NCF
13
1,213
(848)
(161)
-
1st 4 years
(6)
(84)
(96)
(114)
(113)
(92)
(106)
(125)
(99)
(848)
(12)
(19)
(23)
(26)
(26)
(18)
(23)
(26)
(9)
(184)
(15)
19
(8)
(2)
(0)
6
40
69
73
(7)
175
(15)
4
(4)
(6)
(6)
(1)
39
109
182
Monthly
Annual
Full 8 years
Monthly
175
Annual
Total EBIT
(15.4)
(15.4)
Total EBIT
201.1
DWM
(64.3)
(15.0)
DWM
(64.3)
(15.0)
NPV before Terminal Value
($36.4)
($28.7)
NPV
$75.0
$86.7
IRR before Terminal Value
NPV with Terminal Value (1)
n/a
n/a
($55.7)
($50.2)
n/a
n/a
IRR with Terminal Value
(1)
IRR
NPV with Terminal Value (1)
IRR with Terminal Value
(1)
33%
$411.1
58.0%
(1) For purpose of NPV and IRR of incremental investment in BCCI and channel infrastructure, 4 year
calculation applies 13X multiple to FY14 EBITDA; 8 year calculation applies 13x to FY18 EBITDA.
201.1
61%
$433.7
86.8%
17
Scenario 4: Incremental Channel Economics
BCCI License Fees at $420MM
INCREMENTAL SPORTS CHANNEL ECONOMICS
Low $420
FY10
FY 11
FY 12
FY 13
-
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
Total
Increased inventory on Max
-
5
7
8
9
10
11
12
RODP Billing (bonus spots on chnl)
-
1
1
1
1
1
1
2
2
-
13
75
10
Net BCCI Advertising
-
59
68
82
100
78
93
156
124
-
760
Net BCCI Distribution
-
-
14
30
35
42
48
56
66
77
Total Revenue
-
73
103
125
151
137
161
234
215
369
License Fees
-
(72)
(97)
(115)
(140)
(84)
(100)
(148)
(134)
-
Expenses
-
(10)
(15)
(18)
(20)
(20)
(22)
(25)
(29)
-
EBITDA
-
(9)
(9)
(9)
(9)
31
39
60
51
13
159
Inflows
-
37
95
116
139
145
150
198
224
101
1,206
License Fees
(15)
Outflows
-
Cash Flow
Cume NCF
13
1,213
(890)
(161)
-
1st 4 years
(7)
(88)
(101)
(119)
(119)
(96)
(111)
(131)
(104)
(890)
(12)
(19)
(23)
(26)
(26)
(18)
(23)
(26)
(9)
(184)
(15)
18
(12)
(7)
(6)
(0)
36
64
67
(12)
133
(15)
3
(9)
(16)
(22)
(22)
14
78
144
133
Monthly
Annual
Full 8 years
Monthly
Annual
Total EBIT
(35.5)
(35.5)
Total EBIT
158.9
DWM
(79.9)
(21.8)
DWM
(79.9)
(21.8)
NPV before Terminal Value
($51.7)
($43.6)
NPV
$48.3
$61.1
IRR before Terminal Value
NPV with Terminal Value (1)
n/a
n/a
($127.1)
($124.0)
n/a
n/a
IRR with Terminal Value
(1)
IRR
NPV with Terminal Value (1)
IRR with Terminal Value
(1)
24%
$347.1
50.5%
(1) For purpose of NPV and IRR of incremental investment in BCCI and channel infrastructure, 4 year
calculation applies 13X multiple to FY14 EBITDA; 8 year calculation applies 13x to FY18 EBITDA.
158.9
44%
$369.5
75.0%
18
Scenario 1: BCCI P&L
BCCI License Fees at $350MM
Low Case
FY 10
8 year P&L
Revenue
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
TOTAL
350
$ mn
Gross Advertising Income
69
80
96
118
92
110
184
146
894
Net Advertising Income
59
68
82
100
78
93
156
124
760
Net Distribution Income
14
30
35
42
48
56
66
77
369
Syndication Income
-
-
-
(0)
(0)
(0)
(0)
(1)
-
Bad Debts
(0)
(0)
(1)
(4)
Total Income
73
97
116
141
126
149
221
201
1,125
Licensee fee
59
80
95
116
70
82
122
111
735
Programming
1
2
3
4
3
2
4
5
23
Boardcast Cost
2
2
2
3
2
2
3
3
19
Sales & Marketing
1
1
1
1
1
1
1
2
9
Dealer Incentive
0
0
0
0
0
1
1
1
3
Cricket Insurance
0
1
1
1
1
1
1
1
7
Bank Gaurantee Charges
0
0
0
0
0
0
0
0
3
G&A
0
0
0
0
0
1
1
1
4
64
86
104
125
78
91
133
123
803
8
12
13
16
48
59
88
77
322
Expenses
Total Cost
EBIT
19
Scenario 2: BCCI P&L
BCCI License Fees at $375MM
Low Case
FY 10
8 year P&L
Revenue
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
TOTAL
375
$ mn
Gross Advertising Income
69
80
96
118
92
110
184
146
894
Net Advertising Income
59
68
82
100
78
93
156
124
760
Net Distribution Income
14
30
35
42
48
56
66
77
369
Syndication Income
-
-
-
(0)
(0)
(0)
(0)
(1)
-
Bad Debts
(0)
(0)
(1)
(4)
Total Income
73
97
116
141
126
149
221
201
1,125
Licensee fee
64
85
102
124
75
88
131
119
788
Programming
1
2
3
4
3
2
4
5
23
Boardcast Cost
2
2
2
3
2
2
3
3
19
Sales & Marketing
1
1
1
1
1
1
1
2
9
Dealer Incentive
0
0
0
0
0
1
1
1
3
Cricket Insurance
0
1
1
1
1
1
1
1
7
Bank Gaurantee Charges
0
0
0
0
0
0
0
1
3
G&A
0
0
0
0
0
1
1
1
4
68
91
111
133
83
96
141
131
856
4
6
6
8
43
53
80
69
269
Expenses
Total Cost
EBIT
20
Scenario 3: BCCI P&L
BCCI License Fees at $400MM
Low Case
FY 10
8 year P&L
Revenue
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
TOTAL
400
$ mn
Gross Advertising Income
69
80
96
118
92
110
184
146
894
Net Advertising Income
59
68
82
100
78
93
156
124
760
Net Distribution Income
14
30
35
42
48
56
66
77
369
Syndication Income
-
-
-
(0)
(0)
(0)
(0)
(1)
-
Bad Debts
(0)
(0)
(1)
(4)
Total Income
73
97
116
141
126
149
221
201
1,125
Licensee fee
68
91
109
132
80
94
140
127
840
Programming
1
2
3
4
3
2
4
5
23
Boardcast Cost
2
2
2
3
2
2
3
3
19
Sales & Marketing
1
1
1
1
1
1
1
2
9
Dealer Incentive
0
0
0
0
0
1
1
1
3
Cricket Insurance
0
1
1
1
1
1
1
1
7
Bank Gaurantee Charges
0
0
0
0
0
0
0
1
3
G&A
0
0
0
0
0
1
1
1
4
Total Cost
73
97
117
142
88
102
150
139
908
EBIT
(0)
0
38
47
71
61
216
Expenses
(1)
(0)
21
Scenario 4: BCCI P&L
BCCI License Fees at $420MM
Low Case
FY 10
8 year P&L
Revenue
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
TOTAL
420
$ mn
Gross Advertising Income
69
80
96
118
92
110
184
146
894
Net Advertising Income
59
68
82
100
78
93
156
124
760
Net Distribution Income
14
30
35
42
48
56
66
77
369
Syndication Income
-
-
-
(0)
(0)
(0)
(0)
(1)
-
Bad Debts
(0)
(0)
(1)
(4)
Total Income
73
97
116
141
126
149
221
201
1,125
Licensee fee
71
96
114
139
83
99
147
133
882
Programming
1
2
3
4
3
2
4
5
23
Boardcast Cost
2
2
2
3
2
2
3
3
19
Sales & Marketing
1
1
1
1
1
1
1
2
9
Dealer Incentive
0
0
0
0
0
1
1
1
3
Cricket Insurance
0
1
1
1
1
1
1
1
7
Bank Gaurantee Charges
0
0
0
1
0
0
1
1
4
G&A
0
0
0
0
0
1
1
1
4
Total Cost
76
102
123
148
92
107
157
146
951
EBIT
(3)
34
42
64
55
174
Expenses
(4)
(6)
(7)
22
Scenario 1: Channel P&L
BCCI License Fees at $350MM
Consolidated P&L - Sony Sports starting July 2010
Revenue
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
0
Total
$ mn
Advertising Income
147
288
343
403
414
473
417
147
Locked Content
Gross
66
178
211
244
274
309
199
0
BCCI
59
68
82
100
78
93
156
124
1
1
1
1
1
1
2
2
10
(1)
(1)
(2)
(2)
(2)
(2)
(2)
(1)
(13)
RODP Billing
Bad Debts / others
Advertising Income Total
125
245
292
343
351
402
355
2,632
1,481
0
125
0
760
2,237
Distribution Income
Locked Content
5
14
7
8
9
10
12
0
65
14
30
35
42
48
56
66
77
369
20
43
42
50
58
67
78
77
434
Locked Content
3
4
5
5
6
6
3
0
32
BCCI
0
0
0
0
0
0
0
0
0
3
4
5
5
6
6
3
0
32
BCCI
Total Distribution NBA
Revenue
Syndication
Total Syndication Revenue
Impact of Content Shift
5
7
8
9
10
11
12
13
151
300
347
407
425
486
448
216
Locked Content
59
151
168
194
219
246
162
-
BCCI
59
80
95
116
70
82
122
111
1
1
1
1
1
1
1
1
8
119
231
264
311
289
330
285
112
1,941
Property
4
9
11
12
12
12
10
5
75
Corporate
3
5
5
6
7
8
9
10
53
4
5
5
6
6
6
5
4
Total Income
75
-
2,778
Expense
License Fees
Other Content
License Fees
1,198
735
Expenses
Programming
Broadcast & Uplink Cost
Marketing
-
-
-
-
-
-
-
41
-
Property
2
4
3
4
4
4
3
2
Distribution + Corporate
1
2
1
1
1
1
1
1
7
1
2
2
2
2
3
3
4
18
Dealer Incentives
0
1
1
1
1
1
1
1
6
Cricket Insurance
1
2
3
3
3
4
3
1
21
Bank Guarantee Charges
2
3
4
4
4
5
3
0
26
G&A
1
1
1
1
2
2
1
1
11
17
33
36
40
42
45
40
29
283
136
264
300
351
331
375
325
141
2,224
Salaries & Incentives
Total Fixed Expenses
Total Expense
EBITDA
-
25
15
36
46
56
93
111
122
74
555
10%
12%
13%
14%
22%
23%
27%
35%
20%
23
Scenario 2: Channel P&L
BCCI License Fees at $375MM
Consolidated P&L - Sony Sports starting July 2010
Revenue
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
0
Total
$ mn
Advertising Income
147
288
343
403
414
473
417
147
Locked Content
Gross
66
178
211
244
274
309
199
0
BCCI
59
68
82
100
78
93
156
124
1
1
1
1
1
1
2
2
10
(1)
(1)
(2)
(2)
(2)
(2)
(2)
(1)
(13)
RODP Billing
Bad Debts / others
Advertising Income Total
125
245
292
343
351
402
355
2,632
1,481
0
125
0
760
2,237
Distribution Income
Locked Content
5
14
7
8
9
10
12
0
65
14
30
35
42
48
56
66
77
369
20
43
42
50
58
67
78
77
434
Locked Content
3
4
5
5
6
6
3
0
32
BCCI
0
0
0
0
0
0
0
0
0
3
4
5
5
6
6
3
0
32
BCCI
Total Distribution NBA
Revenue
Syndication
Total Syndication Revenue
Impact of Content Shift
5
7
8
9
10
11
12
13
151
300
347
407
425
486
448
216
Locked Content
59
151
168
194
219
246
162
-
BCCI
64
85
102
124
75
88
131
119
1
1
1
1
1
1
1
1
8
123
237
271
319
294
336
294
120
1,993
Property
4
9
11
12
12
12
10
5
75
Corporate
3
5
5
6
7
8
9
10
53
4
5
5
6
6
6
5
4
Total Income
75
-
2,778
Expense
License Fees
Other Content
License Fees
1,198
788
Expenses
Programming
Broadcast & Uplink Cost
Marketing
-
-
-
-
-
-
-
41
-
Property
2
4
3
4
4
4
3
2
Distribution + Corporate
1
2
1
1
1
1
1
1
7
1
2
2
2
2
3
3
4
18
Dealer Incentives
0
1
1
1
1
1
1
1
6
Cricket Insurance
1
2
3
3
3
4
3
1
21
Bank Guarantee Charges
2
3
4
4
4
5
3
1
26
G&A
1
1
1
1
2
2
1
1
11
17
33
36
40
42
45
40
29
283
140
270
307
359
336
381
334
149
2,276
Salaries & Incentives
Total Fixed Expenses
Total Expense
EBITDA
-
25
11
30
39
48
88
105
114
66
502
7%
10%
11%
12%
21%
22%
25%
31%
18%
24
Scenario 3: Channel P&L
BCCI License Fees at $400MM
Consolidated P&L - Sony Sports starting July 2010
Revenue
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
0
Total
$ mn
Advertising Income
147
288
343
403
414
473
417
147
Locked Content
Gross
66
178
211
244
274
309
199
0
BCCI
59
68
82
100
78
93
156
124
1
1
1
1
1
1
2
2
10
(1)
(1)
(2)
(2)
(2)
(2)
(2)
(1)
(13)
RODP Billing
Bad Debts / others
Advertising Income Total
125
245
292
343
351
402
355
2,632
1,481
0
125
0
760
2,237
Distribution Income
Locked Content
5
14
7
8
9
10
12
0
65
14
30
35
42
48
56
66
77
369
20
43
42
50
58
67
78
77
434
Locked Content
3
4
5
5
6
6
3
0
32
BCCI
0
0
0
0
0
0
0
0
0
3
4
5
5
6
6
3
0
32
BCCI
Total Distribution NBA
Revenue
Syndication
Total Syndication Revenue
Impact of Content Shift
5
7
8
9
10
11
12
13
151
300
347
407
425
486
448
216
Locked Content
59
151
168
194
219
246
162
-
BCCI
68
91
109
132
80
94
140
127
1
1
1
1
1
1
1
1
8
127
243
278
327
299
342
302
128
2,046
Property
4
9
11
12
12
12
10
5
75
Corporate
3
5
5
6
7
8
9
10
53
4
5
5
6
6
6
5
4
Total Income
75
-
2,778
Expense
License Fees
Other Content
License Fees
1,198
840
Expenses
Programming
Broadcast & Uplink Cost
Marketing
-
-
-
-
-
-
-
41
-
Property
2
4
3
4
4
4
3
2
Distribution + Corporate
1
2
1
1
1
1
1
1
7
1
2
2
2
2
3
3
4
18
Dealer Incentives
0
1
1
1
1
1
1
1
6
Cricket Insurance
1
2
3
3
3
4
3
1
21
Bank Guarantee Charges
2
3
4
4
5
5
3
1
26
G&A
1
1
1
1
2
2
1
1
11
17
33
36
40
42
45
40
29
283
145
276
314
367
341
386
343
157
2,329
7
24
32
39
83
99
105
59
449
5%
8%
9%
10%
20%
20%
23%
27%
16%
Salaries & Incentives
Total Fixed Expenses
Total Expense
EBITDA
-
25
25
Scenario 4: Channel P&L
BCCI License Fees at $420MM
Consolidated P&L - Sony Sports starting July 2010
Revenue
FY 10
FY 11
FY 12
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
0
Total
$ mn
Advertising Income
147
288
343
403
414
473
417
147
Locked Content
Gross
66
178
211
244
274
309
199
0
BCCI
59
68
82
100
78
93
156
124
1
1
1
1
1
1
2
2
10
(1)
(1)
(2)
(2)
(2)
(2)
(2)
(1)
(13)
RODP Billing
Bad Debts / others
Advertising Income Total
125
245
292
343
351
402
355
2,632
1,481
0
125
0
760
2,237
Distribution Income
Locked Content
5
14
7
8
9
10
12
0
65
14
30
35
42
48
56
66
77
369
20
43
42
50
58
67
78
77
434
Locked Content
3
4
5
5
6
6
3
0
32
BCCI
0
0
0
0
0
0
0
0
0
3
4
5
5
6
6
3
0
32
BCCI
Total Distribution NBA
Revenue
Syndication
Total Syndication Revenue
Impact of Content Shift
5
7
8
9
10
11
12
13
151
300
347
407
425
486
448
216
Locked Content
59
151
168
194
219
246
162
-
BCCI
71
96
114
139
83
99
147
133
1
1
1
1
1
1
1
1
8
131
247
283
334
303
346
309
134
2,088
Property
4
9
11
12
12
12
10
5
75
Corporate
3
5
5
6
7
8
9
10
53
4
5
5
6
6
6
5
4
Total Income
75
-
2,778
Expense
License Fees
Other Content
License Fees
1,198
882
Expenses
Programming
Broadcast & Uplink Cost
Marketing
-
-
-
-
-
-
-
41
-
Property
2
4
3
4
4
4
3
2
Distribution + Corporate
1
2
1
1
1
1
1
1
7
1
2
2
2
2
3
3
4
18
Dealer Incentives
0
1
1
1
1
1
1
1
6
Cricket Insurance
1
2
3
3
3
4
3
1
21
Bank Guarantee Charges
2
3
4
4
5
5
3
1
26
G&A
1
1
1
1
2
2
1
1
11
17
33
36
40
42
45
40
29
283
148
280
320
374
345
391
350
163
2,371
4
20
27
33
79
94
98
52
407
2%
7%
8%
8%
19%
19%
22%
24%
15%
Salaries & Incentives
Total Fixed Expenses
Total Expense
EBITDA
-
25
26
Appendix High Case
27