Star India claims $940 mn from Zee over failed ICC media rights deal

Star India, a subsidiary of Walt Disney, has filed a claim for $940 million (approximately ₹8,000 crore) in damages against Zee Entertainment Enterprises over the termination of a media rights deal for the 2024-27 ICC tournaments. The dispute stems from an alliance agreement signed on August 26, 2022, which allowed Zee to sublicense ICC television broadcasting rights from Star India for four years. The deal was valued at $1.5 billion. Zee withdrew from the agreement in January 2024, citing breaches by Star India. In response, Star terminated the contract in June 2024 and initiated arbitration proceedings in March 2024.

Star India filed a 'Statement of Case' with the London Court of International Arbitration (LCIA) on September 16, 2024. The case is currently at its initial stage, with the tribunal yet to determine any liability on Zee's part. Zee has categorically refuted all claims made by Star India, asserting that it will contest the allegations vigorously. The company maintains that it is not liable for any damages and reserves its rights.

“The Company categorically refutes all claims and assertions made by Star including its claims for damages. The arbitration is at its initial stage and the LCIA Arbitral Tribunal is yet to determine if the Company is liable in any manner,” Zee said in a statement addressed to the stock exchanges. Calling Star India’s claims 'unfounded', the company said it will strongly contest them. 

Zee reported a year-on-year decline of 3.6% in domestic advertising revenue for the June quarter, influenced by cricket viewership and general elections. 

The ongoing arbitration could have significant ramifications for both companies and the broader media landscape in India, as both parties remain firm in their positions regarding the contract's validity and associated damages.