Star India terminates $1.5 billion worth ICC sub-licensing deal with Zee

Disney-owned Star India terminated its alliance agreement with Zee Entertainment for the $1.5 billion International Cricket Council (ICC) TV rights on June 20, according to a regulatory filing by Zee.

However, the broadcaster has decided to seek damages during the arbitration proceedings, which have not yet been quantified. Star initiated arbitration proceedings against Zee before the London Court of International Arbitration (LCIA) on March 14.

On Wednesday, Zee stated that Star India terminated the agreement on June 20, citing a breach of contract. The original agreement, signed on August 26, 2022, had positioned Zee as a key player in broadcasting major ICC events, including the ICC Men’s T20 World Cups and the ICC Men’s Cricket World Cup.

“During the previous year, Star had sent letters to Zee alleging breach of the Alliance Agreement due to non-payment of dues for the rights fee's first instalment, aggregating to $203.56 million, along with the payment for bank guarantee commission and deposit interest aggregating Rs 17 crore, and financial commitments, including furnishing of corporate guarantee/confirmation as stated in the agreement,” Zee said in its disclosure.

“Based on legal advice, the management believes that Star has not acted in accordance with the Alliance Agreement and has failed to obtain necessary approvals and execute the required documentation and agreements," the company added.

The now-terminated deal would have granted Zee exclusive television rights to major ICC men’s events, including two ICC Men’s T20 World Cups (2024, 2026), the ICC Men’s Champions Trophy (2025), the ICC Men’s Cricket World Cup (2027), and key ICC U-19 events.