Zee seeks around Rs 70 crore from Star India in ICC TV rights dispute

Zee Entertainment Enterprises, in a regulatory filing, announced that it has filed a counterclaim of around Rs 70 crore, along with interest, against Star India, now backed by Reliance Industries (RIL) in a dispute over broadcasting rights for the International Cricket Council’s (ICC) men’s tournaments spanning four years. This development follows Star India's Rs 7,800 crore damages claim regarding the failed ICC) contract, which is currently under arbitration at the London Court of International Arbitration (LCIA).

The counterclaim pertains to the Rs 69 crore paid by Zee to Star under their agreement. Zee stated that the arbitration process is still in its early stages, and the determination of Zee's alleged liability for breaches of the Alliance Agreement with Star remains pending.

The management, relying on legal opinion and internal assessment, has concluded that the company is not in breach of the Alliance Agreement and considers Star's claims to be baseless and legally untenable.

The two companies entered into an alliance agreement in August 2022 concerning the ICC rights. Under the agreement, Zee was required to provide financial commitments, including a bank guarantee and corporate guarantees, while also planning for a merger with Sony Pictures Network India (SPNI).

Star, which was previously owned by Walt Disney and is now majority-owned by Reliance Industries, secured the ICC media rights worth $3 billion after Zee withdrew from the agreement. Walt Disney and Bodhi Tree Systems also hold shares in Star. Star claims that Zee failed to make the initial payment of Rs 1,693 crore and incurred additional liabilities of Rs 17 crore for bank guarantee commission and deposit interest.

In March 2024, Star initiated arbitration proceedings to either enforce the agreement or seek damages. However, by June 2024, Star chose to terminate the agreement and subsequently initiated arbitration proceedings at the LCIA. On September 16, 2024, Star filed a statement of case with the LCIA, seeking damages, along with costs, expenses, and applicable interest until full payment from Zee.

In response, Zee sought a refund of Rs 69 crore, arguing that the agreement had become null and void due to Star's failure to meet its obligations. On December 23, 2024, Zee filed its statement of defense, rejecting all claims made by Star. The dispute is being overseen by a three-member arbitral tribunal appointed by the LCIA.