The Zee Entertainment brand
| Photo Credit: Reuters
Zee Entertainment Enterprises has alleged that Star India has not acted in accordance with the agreement between them over the sharing of the TV broadcast rights of ICC cricket matches and has sought a refund of â¹68.54 crore from the Walt Disney-owned agency.
In August, 2022, Zee Entertainment Enterprises had entered into an Alliance Agreement with Star India for a sub-license of TV broadcasting rights of ICC Men’s and Under 19 worldwide matches from 2024 to 2027.
Star India has “failed to obtain necessary approvals, execution of necessary documentation and agreement” and believes that it has “by its conduct breached” the agreement, Zee Entertainment Enterprises Ltd (ZEEL) mentioned within the monetary assertion of its newest December quarter outcomes final week.
The Alliance Agreement was topic to sure situations comparable to submission of monetary dedication, provision of financial institution assure and ICC approval for sub-licensing from the International Cricket Council (ICC).
“Till date, the company has accrued â¹72.14 crore for bank guarantee commission and interest expenses for its share of bank guarantee and deposit as per the Alliance Agreement,” ZEEL mentioned.
During the quarter ended December 31, 2023 and subsequently, Star has despatched letters to ZEEL by way of its authorized counsel alleging breach of the Alliance Agreement on account of non-payment of dues for the rights in relation to first installment of the rights payment aggregating to USD 203.56 million (â¹1,693.42 crore).
Along with this, Star India additionally sought â¹17 crore for fee for financial institution assure fee and deposit curiosity, ZEEL added.
“Based on the legal advice, the management believes that Star has not acted in accordance with the Alliance Agreement, and has failed to obtain necessary approvals, execution of necessary documentation and agreements,” mentioned ZEEL.
The administration additionally believes that Star by its conduct has “breached the Alliance Agreement and is in default of the terms thereof and consequently, the contract stands repudiated,” it added.
ZEEL has already communicated to Star that the Alliance Agreement can not proceed and sought a refund of â¹68.54 crore paid to it.
“The Board continues to monitor the progress of aforesaid matters. Based on the available information and legal advice, the management believes that the company has strong and valid grounds to defend any claims,” it mentioned.
Disney Star bagged the published rights of all ICC occasions for 4 years from 2024 to 2027 for the Indian market from the game’s world governing physique.
As per the agreement, ZEEL was presupposed to have unique tv rights for ICC males’s occasions, together with the ICC Men’s T20 World Cup, which might be performed in 2024 and 2026, ICC Men’s Champions Trophy (2025), and the ICC Men’s Cricket World Cup (2027), together with key ICC U-19 occasions, it mentioned.
Last month Sony Corp terminated the agreement with ZEEL for the merger of its Indian leisure enterprise with it. Besides, Sony had additionally initiated acceptable authorized actions to contest the claims of USD 90 million (â¹748.5 crore) filed by Sony Group earlier than the Singapore International Arbitration Centre (SIAC).
ZEEL had additionally filed a petition earlier than the National Company Law Tribunal (NCLT), in search of a path to Sony Group to implement the merger scheme.
ZEEL, within the monetary assertion additionally mentioned that it spent practically â¹427 crore for the merger.
It has spent â¹60.34 crore on its proposed merger Culver Max (previously Sony Picture India) and BEPL (Bangla Entertainment Pvt Ltd).
Overall â¹250.73 crore have been spent on the merger within the 9 months of FY24. It had spent â¹176.20 crore in FY23 for the deal, introduced in December 2021.
