Zee Entertainment Enterprises Ltd on Wednesday said Star India has sought $940 million in damages at the ongoing case in the London Court of International Arbitration (LCIA) over non-compliance with the agreement for the sub-licence of TV broadcasting rights of ICC international matches from 2024 to 2027.
In a regulatory filing, Zee Entertainment Enterprises Ltd (Zee) said it “categorically refutes all claims and assertions made by Star, including its claims for damages” and will strongly contest all the “unfounded claims”.
On September 16, 2024, Star filed its statement of case before the LCIA, which it has sought to declare that the alliance agreement between Star and the company has been validly terminated by Star, Zee said.
Further, Star has sought damages to be determined as of the date of the tribunal’s award quantified August 31, 2024, as the proxy date of the award, at $940 million along with costs, expenses and applicable interest until full payment, it added.
Zee said it “categorically refutes all claims and assertions made by Star including its claims for damages”.
The LCIA is yet to determine if the company is liable in any manner, Zee said, adding it would strongly contest all “unfounded claims by Star and reserves all its rights”.
In March this year, Star India initiated arbitration proceedings against Zee in the LCIA over non-compliance with the agreement for the sub-licence of TV broadcasting rights of ICC international matches from 2024 to 2027.
Star India, part of global media giant Disney Star, had sought specific performances of the alliance agreement or to pay damages of the $1.4 billion deal.
In August 2022, Zee had entered into an alliance agreement with Star India for a sub-licence of TV broadcasting rights of ICC Men’s and Under 19 international matches from 2024 to 2027.
Zee had missed the first instalment of $203.56 million, following which Star India had in December quarter sent letters through its legal counsel alleging a breach of the alliance agreement.
Disney Star bagged the broadcast rights of all ICC events for four years from 2024 to 2027 for the Indian market from the sport’s global governing body.
The company is among the biggest players in India's media and entertainment industry, where the likes of Reliance Industries and Adani Group are expanding their presence.
The company has raised funds, cut jobs to trim costs and is working on reducing losses.
Last month, Zee and Sony settled all claims after their $10 billion merger failed, while the $8.5 billion-merger of Reliance and Disney's Indian media assets got approvals.
