Zee Entertainment Enterprises Limited (ZEEL), in a regulatory filing, said it has filed a counterclaim case for $8 million plus interest (around Rs 70 crore) against Star India, now backed by Reliance Industries Limited (RIL). This comes after Star filed a damages claim of $940 million in relation to a failed International Cricket Council (ICC) contract, currently being arbitrated at the London Court of International Arbitration (LCIA).
The counterclaim is related to the Rs 69 crore paid by ZEEL to Star as per their agreement. ZEEL has mentioned in a regulatory filing that the arbitration process is in its early stages, with the determination of ZEEL’s alleged liability for breaches of the Alliance Agreement with Star still pending.
On 23 December 2024, ZEEL submitted its statement of defence refuting all claims made by Star. A three-member arbitral tribunal appointed by the LCIA is overseeing the dispute. On 16 September 2024, Star filed its statement of case, which included an expert report on damages and a witness statement.
Star, previously owned by Walt Disney before being majority owned by RIL, acquired the ICC media rights valued at $3 billion following ZEEL’s withdrawal from the agreement. Walt Disney and Bodhi Tree Systems are also shareholders in Star. Star alleges that ZEEL failed to make the initial payment of $203.56 million (Rs 1,693 crore) and incurred additional obligations worth Rs 17 crore for bank guarantee commission and deposit interest.
In March 2024, Star initiated arbitration proceedings to enforce the agreement or seek damages. By June 2024, Star decided to terminate the agreement and focus on claiming damages from ZEEL. ZEEL, on the other hand, demanded a refund of Rs 69 crore, claiming that the agreement had become null and void due to Star’s failure to fulfill its obligations.
In July 2024, Star India decided to end its exclusive partnership with Zee Entertainment Enterprises Ltd (ZEE). This agreement, which involved sub-licensing the linear TV rights for the ICC Men’s tournaments for the 2024-27 cycle, was dissolved due to allegations of contractual breaches.
ZEE reported that Star India terminated the agreement on June 20, citing a breach of contract. Initially signed on August 26, 2022, this agreement had established ZEE as a key player in broadcasting significant ICC events, such as the ICC Men’s T20 World Cups and the ICC Men’s Cricket World Cup.
The termination of this partnership follows arbitration proceedings that Star India initiated in March. During these proceedings, the company sought either the specific fulfillment of the agreement by ZEE or compensation for unquantified damages.