Zee Entertainment Enterprises Ltd. has counter claimed $8.06 million plus interest from Star India Pvt. Ltd. in a broadcasting rights dispute for International Cricket Council's men's tournaments over four years.
As per Zee's regulatory filing from Thursday, the two entities had entered into an alliance agreement in August 2022 regarding the ICC rights. However, on Sept. 16, 2024, Star had claimed damages of $940 million, along with costs, expenses and applicable interest until full payment from Zee in the statement of case filed before the London Court of International Arbitration.
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The management, based on a legal opinion and its internal assessment, has determined that the company is not in default of the Alliance Agreement and believes that the claims made by Star are unfounded and legally not tenable, the exchange filing said.
As per the deal, Zee had to come out with financial commitments such as a bank guarantee and corporate guarantees and the company was also anticipating a major media expansion.
However, it is Star's submission that Zee could not fulfil the first installment of $203.56 million as per the agreed terms. This pertains to rights fee and other payments for bank guarantee commissions. Star has claimed that this failure constitutes default on agreement terms.
On June 20, 2024, Star terminated the agreement. Subsequently, Star started arbitration proceedings at the London Court of International Arbitration.
A statement of defence was filed by Zee on Dec. 23, 2024 submitting that all claims of default made by Star are unsubstantiated.
The outcome of the arbitral tribunal is yet to be determined.
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