MUMBAI: Like two Sumo wrestlers in the ring sizing each other up, Zee Entertainment Enterprises Ltd (Zeel) and the Reliance-and Walt Disney backed Star India have been circling each other, eyeing each other in relation to a failed International Cricket Council (ICC ) men’s cricket rights (2024-27) rights deal the two had made with each other in August 2022. Both have been saying the other owes them money as the failed deal has proved to be an expensive affair.
Star’s first claimed $940 million in damages in September 2024 over the failed International Cricket Council (ICC) broadcasting rights deal. Now, it's the turn of Zeel to file an $8 million counterclaim, plus interest against Star India. The dispute is being arbitrated by the London Court of International Arbitration (LCIA)
It all began with Star sub-licensing ICC rights to Zeel. Zeel later withdrew from the agreement and Star India took over the entire $3billion liability for the rights. Star has argued that Zeel TV failed to pay the $203.56 million first instalment (Rs 1,693 crore) and meet additional financial obligations of Rs 17 crore for bank guarantees and deposit interest. In March 2024, Star initiated arbitration seeking enforcement of the agreement or damages. It later terminated the contract in June 2024 and focused on claiming damages.
Zeel submitted its defence on 23 December 2024, refuting Star’s claims and seeking a refund of Rs 69 crore paid under the agreement. The LCIA constituted a three-member tribunal, with proceedings at an early stage. Zee TV has argued that that the agreement became void due to Star’s failure to meet conditions precedent, including financial guarantees and ICC approval. Zeel also cited the planned (but now failed) merger with Sony Pictures Networks as a complicating factor. Star India reported a Rs 12,548 crore net loss for FY24, driven by a Rs 12,319 crore provision for the ICC media rights deal.
Zeel maintains that the dispute will not significantly impact its operations or finances, citing the strength of its legal position. The company’s board is monitoring the matter and remains confident in its ability to defend against Star’s claims.
