Star India has initiated arbitration proceedings against Zee Entertainment Enterprises Ltd for the media major’s recent decision to pull back on its $1.4 billion TV rights sub-licensing agreement for International Cricket Council (ICC) tournaments for the 2024-27 period.
Star India has asked company to pay damages for non-compliance.
It was in August 26 2022 that ZEE entered into an agreement with Star for the Disney’s India subsidiary to grant sub-licence rights in relation to television broadcasting rights of ICC’s Men’s and Under 19 (U-19) global events for a period of four years (2024-2027) on an exclusive basis.
ZEE has also alleged that Star India breached the ICC TV rights agreement and on its part demanded a refund of ₹68.54 crore ($8.3 million). The refund is part of the agreement between the two media companies, according to ZEE in its Q3 financial statements.
“We hereby inform you that, on March 14, 2024, Star India Private Limited (‘Star’) has initiated arbitration proceedings against the Company, under the alliance agreement dated August 26, 2022 entered between Star and the company, by filing a request for arbitration,” ZEE has said in an exchange filing.
ZEEL has said that it has communicated to Star India Pvt Ltd that it cannot proceed with the ICC TV rights agreement alleging that Star has breached the agreement and is in default of the terms.
