New Delhi: Zee Entertainment Enterprises accuses Star India of breaching their agreement on ICC cricket match broadcast rights, demanding a refund of Rs 68.54 crore.
In August 2022, Zee Entertainment Enterprises struck an Alliance Agreement with Star India, securing TV broadcasting rights for ICC Men’s and Under-19 international matches from 2024 to 2027.
However, Star India allegedly failed to secure necessary approvals and documentation, breaching the agreement, as per ZEEL’s latest financial statement.
The Alliance Agreement, contingent on conditions like financial commitments and ICC approval, has incurred Rs 72.14 crore in bank guarantee commission and interest expenses for ZEEL.
Star India, in response, accused ZEEL of breaching the agreement by not paying dues for the first installment of the rights fee, amounting to USD 203.56 million (Rs 1,693.42 crore).
They also sought Rs 17 crore for bank guarantee commission and deposit interest from ZEEL.
Management asserts Star’s breach and refusal to adhere to necessary procedures, considering the agreement repudiated.
ZEEL demands a refund of Rs 68.54 crore and believes it has strong grounds to defend against any claims.
Disney Star secured ICC broadcast rights for four years (2024-2027) for the Indian market, with ZEEL to have exclusive rights for ICC men’s events.
Meanwhile, ZEEL faces legal disputes with Sony Corp over a terminated merger agreement and claims before the Singapore International Arbitration Centre (SIAC).
ZEEL also filed a petition before the National Company Law Tribunal (NCLT) regarding the merger.
Financially, ZEEL spent nearly Rs 427 crore for the merger, including expenses on Culver Max and BEPL.
In FY24, Rs 250.73 crore was spent on the merger, following Rs 176.20 crore spent in FY23 for the deal announced in December 2021.
