New Delhi: In a dramatic turn of events, Star India has terminated its lucrative $1.5 billion sub-licensing agreement with Zee Entertainment Enterprises Ltd (ZEEL) for the broadcasting rights of ICC Men’s tournaments. The development comes as a major setback for ZEEL, which was poised to air high-profile cricket matches including the ICC Men’s T20 World Cups and the ICC Men’s Cricket World Cup.
The termination was officially communicated to ZEEL on June 20, as per a BSE filing. Star India has opted to pursue damages through arbitration proceedings, the quantum of which is yet to be determined.
The two media giants had entered into an alliance agreement in August 2022, which laid the groundwork for the sub-licensing deal. However, tensions escalated earlier this year when Star India initiated arbitration proceedings against ZEEL in March, alleging non-compliance with the terms of the agreement.
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ZEEL, on the other hand, has not been without its counterclaims. The company has demanded a Rs 69 crore refund from Star India following the collapse of the ICC TV rights deal. Additionally, ZEEL has asserted that Star India breached the agreement and is in default of its terms, preventing ZEEL from proceeding with the sub-licensing.
Financial implications for both companies are significant. ZEEL has already incurred Rs 721.4 crore in bank guarantee commission and interest expenses related to the deal.
The termination of this high-stakes agreement is likely to have far-reaching consequences for the Indian media landscape. As the arbitration proceedings unfold, the industry will be watching closely to see how this dispute is resolved.
