Zee Entertainment Enterprises Ltd’s four-year sublicensing agreement with Disney Star for TV broadcasting rights ICC events looks to be headed for closure after Sony Corporation terminated the $10-billion merger deal with ZEE.
In 2022, Disney Star had sublicensed a part of the ICC rights it won for the Indian market to ZEE. The agreement meant that ZEE will broadcast the ICC men’s and Under-19 tournaments in India for the 2024-27 cycle, while Disney Star retained the digital rights for the same events.
In its FY23 annual report, Zee had said that the acquisition of ICC TV rights is “subject to certain conditions precedent, including submitting financial commitments, guarantees, and ICC approval for sub-licensing to the firm, which are pending”.
There are four men’s marquee events in the 2024-27 period, including two T20 World Cups (2024 and 2026), the 2025 Champions Trophy and the 2027 ODI World Cup.
If Zee fails to honour its sublicensing deal with Disney Star, the latter might explore legal options. “Disney Star would not hesitate to take ZEE to court if it fails to honour the agreement,” a legal expert told Economic Times last month.
The broadcaster missed an early-January deadline to pay $200 million, Bloomberg News reported on January 9.
