The ZEEL and Star India agreement to sublicense the TV broadcasting rights to the ICC Men’s and Under-19 matches for the years 2024–2027 was signed in August 2022, marking the start of this legal drama.
Regarding the television broadcast rights to ICC cricket events in India, Zee Entertainment Enterprises (ZEEL) and Star India (Disney Star) are embroiled in a legal battle.
The origins of this legal drama may be found in August 2022, when ZEEL and Star India signed an agreement to sublicense the TV broadcasting rights of ICC Men’s and Under-19 international matches for the years 2024–2027. This was a promising partnership that is currently embroiled in dispute.
Star India has been accused by ZEEL of not keeping up its part of the agreement, including failures to execute crucial papers, obtain required clearances from the International Cricket Council, and generally violate agreed terms.
The stakes are high because ZEEL is demanding a substantial repayment of INR 68.54 crore, claiming that the agreement has been broken and is now repudiated.
The disagreement has substantial financial repercussions. Bank guarantee commissions and interest costs associated with the doomed transaction have already cost ZEEL 72.14 crore.
Star India has filed a claim with ZEEL for unpaid dues rights fees totaling INR 1,693.42 crore, plus an extra INR 17 crore for bank guarantee and deposit interest. ZEEL, however, has argued that the sub-licensing deal is now void due to Star India’s violations and non-compliance.
Star makes a claim, but ZEEL rejects it angrily and maintains that it has “strong and valid grounds to defend any claims.” In response, ZEEL has called for the return of the INR 68.54 crore that has already been paid out in addition to terminating the arrangement.
Beyond the boardroom, this conflict might have far-reaching consequences for Indian fans, who could lose out on important ICC events like the next Cricket World Cup and T20 World Cup if the disagreement is not settled. The outcome of the legal dispute between the two parties will affect the future of TV broadcast rights for these elite cricket competitions in India.
