Open to out-of-court settlement in Star arbitration case: ZEEL CEO Punit Goenka

With the Reliance–Disney Star merger, the legal battle between Star India and Zee Entertainment Enterprises Ltd (ZEEL) over cricket broadcasting rights has entered a new phase — one that could potentially shift towards settlement.

In its Q4 FY25 earnings call, ZEEL signalled a possible softening of stance in its arbitration with Star, stating it was “open to all possibilities… both legal and non-legal,” including an out-of-court resolution. 

The remarks come amidst a prolonged dispute stemming from a collapsed $1.5 billion sub-licensing agreement for ICC media rights.

The origin of the conflict dates back to July 2024, when Disney-owned Star India terminated its alliance agreement with Zee, citing non-compliance. 

This was followed in August by Star initiating arbitration proceedings, seeking $940 million in damages, alleging that Zee defaulted on a critical $203.56 million payment due in December 2023.

Speaking on the issue during the earnings call, ZEEL CEO Punit Goenka said, “We are open to all possibilities that are available to us, both legal and non-legal… but it’s very early for us to comment there at all.” 

His comments were echoed by other senior management, emphasizing that the company continues to explore all strategic avenues.

The legal dispute gained further visibility after Star’s arbitration filing last year, which was closely followed by ZEEL’s investor meets in Singapore in September 2024 — a move interpreted by some analysts as an attempt to reassure stakeholders amid the growing legal risk.

Zee has consistently denied the allegations made by Star, stating that it “vehemently disputes all of Star’s claims” and will continue to contest the matter strongly.

However, the merger between Reliance and Disney Star, has altered the equation. 

With Reliance now having a commanding position across linear TV, OTT, and sports rights, industry observers say a negotiated resolution may be more desirable for both parties than a prolonged legal standoff.

While no concrete proposal for a settlement has emerged yet, ZEEL’s recent tone suggests that the door is now open — even if only slightly — to a less adversarial outcome.