C Entertainment Enterprises Limited (ZEEL), in a regulatory filing, it filed a counterclaim against Star India for $8 million plus interest (around Rs 70 crore), now backing Reliance Industries Limited (RIL). This comes after Star filed a $940 million compensation claim over a failed International Cricket Council (ICC) contract, which is currently being settled at the London Court of International Arbitration (LCIA).
The counter claim relates to Rs 69 crore paid by ZEEL to Star as per their agreement. ZEEL has stated in a regulatory filing that the arbitration process is in its early stages, and ZEEL's alleged liability for breach of the alliance agreement with Star is yet to be determined.
On 23 December 2024, ZEEL filed its statement of defense denying all the claims made by Star. A three-member arbitral tribunal appointed by the LCIA oversees the dispute. On September 16, 2024, Starr filed its statement of claim, which included an expert report on damages and a statement of evidence.
Star, formerly owned by Walt Disney, acquired ICC media rights worth $3 billion after pulling out of the ZEEL deal, before RIL's majority ownership. Walt Disney and Bodhi Tree Systems are also shareholders of Star. Star alleges that ZEEL defaulted on a principal payment of $203.56 million (Rs 1,693 crore) and incurred additional liabilities of Rs 17 crore towards bank guarantee commissions and interest on deposits.
In March 2024, Star initiated arbitration proceedings to enforce the agreement or seek damages. By June 2024, Star decided to terminate the agreement and focus on seeking damages from ZEEL. On the other hand, ZEEL demanded a refund of Rs 69 crore, saying that the agreement was null and void due to Star's failure to fulfill its obligations.
In July 2024, Star India decided to end its exclusive partnership with Zee Entertainment Enterprises Ltd (ZEE). The deal, which involved sub-licensing the linear television rights for the ICC men's tournaments for the 2024-27 cycle, was dissolved due to allegations of breach of contract.
ZEE reported that Star India terminated the contract on June 20, citing breach of contract. The agreement, initially signed on 26 August 2022, has established ZEE as a key player in broadcasting significant ICC events such as the ICC Men's T20 World Cup and the ICC Men's Cricket World Cup.
The termination of the partnership follows arbitration proceedings initiated by Star India in March. In the course of these proceedings, the company sought compensation for unspecified performance of the agreement or unquantified damages by ZEE.