The Lahore High Court on Tuesday disposed of the petition challenging a deal of Pakistan Television Corporation (PTV) with Ten Sports TV for sub-licensing of broadcasting rights of ICC cricket matches for 2012-2015.
The petition was filed by Independent Music Group SMC (Pvt) Limited (Geo Super) against the deal. While disposing of the petition, Justice Umar Ata Bandial observed that PTV should decide the deal of rights licensing on merit giving broadcast rights to highest bidder in an auction.
The judge directed the petitioner company Geo Super to approach PTV in one week with its bid for the deal and if the petitioner fails to do so, PTV will be free to decide the matter in favaour of any company on merit. The counsel for Geo Super told the court that it has security deposit of US$ 2 million in hand for the bid. On previous hearing the court had stopped PTV from concluding the deal with Ten Sports.
The petitioner said the International Cricket Council (ICC) had granted rights to broadcast cricket events to ESPN, a sports channel, which further granted rights to different entities belonging to different countries on a four-year basis.
He submitted the petitioner had earlier acquired broadcasting rights for Pakistan on cable and satellite from ESPN (Mauritius).
The counsel submitted that after expiry of the rights, ESPN invited bids to broadcast ICC cricket events in Pakistan for four years including the ICC World Cup 2015 wherein the petitioner also approached.
However, PTV also approached ESPN with the highest bid offer of US$ 30 million for both cable and satellite broadcasting rights, the counsel said.
He said that PTV had entered into a back to back arrangement with Ten Sports, a channel owned and controlled by a foreign media group, Zee Network, to exclusively acquire broadcasting rights and PTV would sub-licence the rights to its joint venture partner.
He said that the petitioner, on October 27, 2011, wrote a letter to PTV and offered a joint venture on terms which were being offered to the Indian channel. However, PTV rejected the offer on commercial basis without giving any cogent reason, he added.
He said that PTV had signed a memorandum of understanding with Ten Sports without observing cordial formalities, inviting public offers, which were mandatory for a public organisation. The counsel contended that PTV, being a public organisation, was duty bound to act in accordance with the constitution and law.
He said that PTV could not enter into any arrangement for the sale of any public rights/property without observing the process of law. He prayed the court to issue directions to PTV to sub-licence rights after observing legal formalities.
