Disney-owned Star India has ended its $1.5 billion deal with Zee Entertainment for the International Cricket Council (ICC) TV rights. The termination was announced on June 20, according to a regulatory filing by Zee Entertainment.
On March 14, Star India initiated arbitration proceedings against Zee Entertainment, with the case being adjudicated at the London Court of International Arbitration (LCIA).
The alliance was initially formed on August 26, 2022, when Star India and Zee Entertainment agreed to a sublicensing deal for ICC TV rights covering Men’s and Under-19 (U-19) global cricket events through 2027. However, Zee’s subsequent merger deal with Sony Pictures Networks India fell through, leaving Zee unable to meet the obligations of the ICC rights deal as a standalone entity.
Zee Entertainment has informed Star India that it cannot proceed with the agreement and is requesting a refund of ₹69 crore already paid. The performance of the agreement hinged on various conditions, including the submission of financial and corporate guarantees and final ICC approval, which were not met.
Zee Entertainment has also accrued ₹72.14 crore in bank guarantee commissions and interest expenses related to its share of the guarantees and deposits. In response to Star India’s claims of a breach due to missed payments and other financial commitments, Zee contends that Star has not fulfilled its obligations under the agreement.
Zee argues that Star’s failure to secure necessary approvals and execute required documents constitutes a breach, leading Zee to repudiate the contract.
Zee Entertainment maintains that it has strong legal grounds to contest Star India’s claims and does not anticipate significant negative consequences, asserting that the contract’s repudiation nullifies the need for further adjustments.
