Zee Entertainment Enterprises (ZEEL) is embroiled in a legal dispute with Star India (Disney Star) regarding the television broadcast rights of ICC cricket matches in India.
ZEEL alleges that Star failed to fulfill its obligations under their agreement and is seeking a refund of ₹68.54 crore.
What was Zee-Star India Agreement?
In August 2022, ZEEL entered into an agreement with Star India to sub-license the TV broadcasting rights of ICC Men’s and Under-19 international matches for the period 2024-2027.
The agreement was subject to certain conditions, including obtaining necessary approvals from the International Cricket Council (ICC) and submitting financial guarantees.
Zee allegations:
According to ZEEL, Star failed to secure the required approvals, execute necessary documentation, and adhere to the terms of the agreement. As a result, ZEEL believes the agreement is “breached” and “stands repudiated.”
Financial Implications:
ZEEL has already accrued ₹72.14 crore for bank guarantee commissions and interest expenses related to the deal.
Additionally, Star initiated legal action against ZEEL, claiming unpaid dues of ₹1,693.42 crore and ₹17 crore for bank guarantee and deposit interest.
ZEEL refutes Star’s claims and asserts that the company has “strong and valid grounds to defend any claims.”
Zee has communicated to Star the termination of the agreement and demanded a refund of ₹68.54 crore, the amount already paid.
Impact on Viewers:
If the dispute remains unresolved, viewers in India might be deprived of watching key ICC events like the upcoming T20 World Cups and Cricket World Cup on ZEEL channels.
Both parties are expected to pursue legal options to resolve the dispute. The outcome will determine the fate of TV broadcast rights for these marquee cricket events in India.
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