Star India ends $1.5 billion deal with Zee Entertainment for ICC TV rights
October 23, 2024
Mumbai: Star India has ended its $1.5 billion deal with Zee Entertainment Enterprises Ltd for ICC TV rights, as announced in a regulatory filing by Zee Entertainment on 20 June. The dispute between the two companies, which began with Star India's arbitration proceedings on 14 March, is being resolved through the London Court of International Arbitration (LCIA).
The agreement, originally formed on 26 August 2022, was a sublicensing arrangement for ICC TV rights covering Men’s and Under-19 (U-19) global cricket events through 2027. However, Zee Entertainment's subsequent failed merger with Sony Pictures Networks India left it unable to fulfill its obligations under the deal as an independent entity.
Zee Entertainment has informed Star India of its inability to continue with the agreement and has requested a refund of Rs 69 crore that was already paid. The deal's performance was contingent on several conditions, including the submission of financial and corporate guarantees and final ICC approval, which were not met.
Additionally, Zee has accumulated Rs 72.14 crore in bank guarantee commissions and interest expenses related to its share of guarantees and deposits. Zee contends that Star India’s failure to secure necessary approvals and execute required documents amounts to a breach of the agreement, leading Zee to repudiate the contract.
