Zee Entertainment Enterprises Limited (ZEALOUS), in a regulatory filing, said it had filed a counterclaim for $8 million plus interest (around Rs 70 crore) against Star India, now backed by Dependence Industries Limited (RIL). This comes after Star filed a $940 million damages claim in relation to a failed contract with the International Cricket Council (ICC), currently undergoing arbitration at the Court of Arbitration London International (LCIA).
The counterclaim relates to the Rs 69 crore paid by ZEEL to Star as per their agreement. ZEEL mentioned in a regulatory filing that the arbitration process is in its early stages, with the determination of ZEEL’s alleged liability for violations of the alliance agreement with Star still pending.
On December 23, 2024, ZEEL presented its defense refuting all of Star’s claims. A three-member arbitral tribunal appointed by the LCIA oversees the dispute. On September 16, 2024, Star filed its brief, which included an expert damages report and a witness statement.
Star, which was previously owned by Walt Disney before being majority-owned by RIL, acquired ICC media rights valued at $3 billion following ZEEL’s withdrawal from the deal. Walt Disney and Bodhi Tree Systems are also shareholders of Star. Star alleges that ZEEL failed to make the initial payment of $203.56 million (Rs 1,693 crore) and incurred additional liabilities worth Rs 17 crore for bank guarantee fee and deposit interest .
In March 2024, Star initiated arbitration proceedings to enforce the agreement or seek damages. In 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 deal had become null and void due to Star’s failure to fulfill its obligations.
In July 2024, Star India has decided to end its exclusive partnership with Zee Entertainment Enterprises Ltd (ZEE). This agreement, which provided for the sub-licensing of linear television rights for the ICC men’s tournaments for the 2024-2027 cycle, was dissolved due to allegations of contractual violations.
ZEE reported that Star India terminated the deal on June 20, citing breach of contract. Originally signed on August 26, 2022, this agreement made ZEE a key player in the broadcast of important 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 an arbitration procedure initiated by Star India in March. During this procedure, the company requested either the concrete performance of the contract by ZEE, or compensation for unquantified damage.
