ICC rights dispute: JioStar ups damage claim to $1 bn, ZEEL calls allegations unfounded

The high-stakes arbitration between Zee Entertainment Enterprises Ltd (ZEEL) and JioStar India Private Limited (formerly Star India) has intensified, with JioStar updating its damages claim to USD 1,003 million.

ZEEL, in its Q1 FY26 earnings disclosure, dismissed the allegations as “arbitrary and unfounded”, and is scheduled to file its formal rejoinder before the London Court of International Arbitration (LCIA) by August 8, 2025.

The dispute stems from a four-year Alliance Agreement signed on August 26, 2022, under which JioStar (then Star India) was to sub-license exclusive television broadcasting rights for ICC Men’s and U-19 global events (2024–2027) to ZEEL. The deal was seen as strategically important for ZEEL’s expansion into the sports broadcasting space, completing its presence across all key media segments.

The agreement, however, was subject to conditions precedent, including financial commitments, corporate guarantees and final approval from the ICC.

JioStar subsequently alleged that ZEEL failed to meet its financial obligations, including the first installment of the rights fee amounting to USD 203.56 million (₹16,934 million), as well as bank guarantee commissions and interest charges of ₹170 million. Star, through legal counsel, claimed these as breaches of the agreement.

ZEEL, however, maintains that JioStar itself failed to uphold terms of the agreement, and on 8 January 2024, the company terminated the Alliance Agreement, citing JioStar’s “repudiatory breach.” ZEEL also sought a refund of ₹685 million paid toward bank guarantee commission and interest.

JioStar initiated arbitration proceedings before LCIA on 14 March 2024, initially seeking either specific performance of the contract or damages. On 20 June 2024, JioStar terminated the agreement from its end and chose to pursue damages alone.

JioStar formally filed its Statement of Case on 16 September 2024, placing its damages claim at USD 940 million. ZEEL responded with a Statement of Defence and Counterclaim on 23 December 2024, strongly refuting all allegations and seeking a refund of USD 8.06 million plus interest.

Following a document discovery phase on May 31, 2025, JioStar submitted its updated Reply and Defence on 13 June 2025, raising its damages claim to USD 1,003 million as of 30 April 2025.

Despite the growing claim, ZEEL has taken a firm legal stance in its disclosures:

“The management, based on legal opinion and internal assessment, has determined that the Company is not in default of the Alliance Agreement and believes that the claims made by JioStar are unfounded and legally not tenable,” the company stated.

“The Company has strong and valid grounds to defend any claims… and does not expect any material adverse impact with respect to the above, as in its view the contract has been repudiated and no adjustments are required to the accompanying Statement.”

The board of ZEEL is actively monitoring the arbitration, and the company has reiterated its confidence in defending its position before the LCIA.