 "Zee Entertainment refutes $940 million damages claim by Disney's Star India")
Zee Entertainment Enterprises Ltd rejected a $940 million claim filed by Disney-owned Star India regarding the termination of a cricket broadcasting agreement, the company said in an exchange filing on Wednesday. The claim was submitted to the London Court of International Arbitration (LCIA), with Star India seeking damages for Zee's exit from a lucrative broadcasting deal.
Background of the Zee-Star India dispute
The dispute centres on an alliance agreement signed on August 26 2022 between Zee and Star India. The deal, valued at $1.4 billion, would have seen Star India license television broadcasting rights for International Cricket Council (ICC) events to Zee for four years. However, in January 2024, Zee withdrew from the agreement, claiming Star India had breached the terms of the contract. Zee also demanded a repayment of Rs 68.54 crore, as mentioned in their December-quarter earnings report.
Star India, in response, initiated arbitration proceedings under the LCIA rules, alleging that the agreement had been validly terminated on their part. In their Statement of Case, filed on September 16, 2024, Star India quantified their damages at $940 million, along with associated costs, expenses, and interest.
Zee’s response to Star India
In a statement submitted to the exchanges on Wednesday, Zee Entertainment categorically refuted Star India's claims. The company maintained that the arbitration process is still in its early stages and that the LCIA Tribunal has yet to assess Zee's liability, if any.
"The Company categorically refutes all claims and assertions made by Star including its claims for damages. The arbitration is at its initial stage and the LCIA Arbitral Tribunal is yet to determine if the Company is liable in any manner. The Company will, on merits, strongly contest all unfounded claims by Star and reserves all its rights," the company said.
The case remains ongoing, with the tribunal's final decision yet to be determined.
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As the arbitration proceedings continue under the LCIA, it remains to be seen how the tribunal will rule on the matter. With both sides standing firm in their positions, the outcome could have a far-reaching impact on the future of cricket broadcasting rights and business agreements in the media industry. For now, Zee Entertainment has expressed confidence in its case and will continue to challenge the claims made by Star India.