Mumbai: Tensions have emerged between the International Cricket Council (ICC) and its India media rights holder Star India, the local unit of The Walt Disney Co., over the latter’s $3 billion media rights deal for the 2024-27 period.
Star India has sent a stern letter to cricket’s global governing body seeking to renegotiate the deal after suffering significant losses in advertising revenue during the recently concluded T20 World Cup, two people familiar with the matter said.
Sydney Morning Herald was the first to report that Star has pressed for a renegotiation.
India lifted the ICC Men’s T20 World Cup, which was held in the US and the West Indies to promote cricket in newer geographies; however, many advertisers skipped the event since fewer Indians were likely to watch these matches due to inconvenient timings, in a setback for Star. Erratic weather worsened the situation, with multiple games, including an India match, either washed out or truncated, leading to further advertising revenue losses.
Despite these challenges, an official familiar with the matter said the agreement between the ICC and Star India is ironclad, with no provision for renegotiation or exit.
“A few weeks after the World Cup concluded, the ICC received a letter from Star India demanding renegotiation. However, the agreement includes no clause or option for altering the deal value. The ICC’s future tour program (FTP) was announced well in advance, and everyone knew the first T20 World Cup would be played in the US. Like the 2026 T20 World Cup, which will be co-hosted by India and Sri Lanka, there were no surprises here, so it’s unreasonable to cry foul now,” the official said on the condition of anonymity.
When contacted by Mint, an ICC spokesperson stated, “We do not comment on commercial arrangements.” A Star India spokesperson also declined to comment.
Mint previously reported that Star India had generated just over 1,200 crore in advertising revenue from the T20 World Cup, against its payout of nearly $500 million ( Rs. 4,200 crore).
After winning the bid in August 2022, Star India had sub-licensed TV rights for the men’s tournaments to Zee Entertainment Enterprises Ltd for nearly $1.4 billion. However, after Zee backed out, Star terminated the agreement accusing it of breach of contract, and initiated arbitration proceedings in the London Court of International Arbitration.
While this legal dispute is ongoing, Star India’s parent company, Walt Disney, has agreed to merge its India unit with Reliance Industries-owned Viacom18. The Competition Commission of India (CCI) is currently reviewing the $8.5 billion merger.
“The effort from Star India is futile,” said a second person familiar with the matter. “It may generate headlines, but the fact remains that there is little they can do. The rights were acquired through an auction process, and Star made the Bid with full awareness of the terms. Exiting the contract is not an option.”
The rights include the T20 World Cups for men and women, one Champions Trophy, as well as at least one World Test Championship for men.
Dhuleswar Garnayak is a seasoned journalist with extensive expertise in international relations, business news, and editorials. With a keen understanding of global dynamics and a sharp analytical mind, Dhuleswar provides readers with in-depth coverage of complex international issues and business developments. His editorial work is known for its insightful analysis and thought-provoking commentary, making him a trusted voice in understanding the intersections of global affairs and economic trends.
