In a regulatory filing, ZEEL stated that arbitration is at an early stage, with the LCIA yet to determine ZEEL’s alleged liability for breaches of the Alliance Agreement with Star.
ZEEL submitted its statement of defence on 23 December 2024, refuting all claims made by Star. A three-member arbitral tribunal has been constituted by the LCIA to oversee the dispute. On 16 September 2024, Star filed its statement of case, including an expert report on damages and a witness statement.
The dispute arises from the Alliance Agreement signed on 26 August 2022, under which Star agreed to sub-license TV broadcasting rights for ICC men’s cricket events from 2024 to 2027 to ZEEL.
Star, then wholly owned by Walt Disney, took over the ICC media rights valued at $3 billion after ZEEL withdrew from the agreement. Now majority owned by RIL, with Walt Disney and Bodhi Tree Systems as other shareholders, Star claims ZEEL failed to pay the first instalment of $203.56 million (Rs 1,693 crore) and cited additional obligations totalling Rs 17 crore for bank guarantee commission and deposit interest.Star initiated arbitration proceedings in March 2024, seeking enforcement of the agreement or damages. In June 2024, Star terminated the agreement and focused solely on claiming damages. ZEEL, in turn, sought a refund of Rs 69 crore, arguing the agreement had become void due to Star’s failure to meet its obligations.ZEEL said it is confident that the dispute will not significantly impact its operations or finances, citing the strength of its legal position.
The company’s board continues to monitor the matter and believes the company has strong and valid grounds to defend any claims by Star, it added.
Previously, ZEEL had argued that the ICC agreement could not proceed due to unfulfilled conditions precedent, including financial commitments, guarantees, and ICC approval for the sub-licensing arrangement.
The ICC agreement was also impacted by ZEEL’s planned merger with Sony Pictures Networks India, which eventually fell through.
Star India, meanwhile, reported a standalone net loss of Rs 12,548 crore for the financial year ending 31 March 2024, primarily due to a Rs 12,319 crore provision for an “onerous contract” related to the ICC media rights deal, according to a regulatory filing.
