Uncertainty looms over $1.5 billion ICC TV rights deal between Disney and Zee
ICC) TV rights deal between Disney Star and Zee Entertainment Enterprises hangs in the balance with the new media rights cycle set to kick off next month.
A source aware of the development said the ICC TV deal, which was announced in August 2022, is yet to be concluded as Zee has not given the required bank guarantees to Disney Star.
In its FY23 annual report, Zee has said that the acquisition of ICC TV rights is «subject to certain conditions precedent, including submitting financial commitments, guarantees, and ICC approval for sub-licensing to the firm, which are pending».
The uncertain status of the ICC TV deal will be a key point of consideration during the due diligence and valuation exercises between Walt Disney and Reliance Industries (RIL) regarding the potential merger of Star India and Viacom18.
The ICC Under-19 Men's Cricket World Cup 2024, which will be held in South Africa from January 19 to February 11, will be the first tournament under the new media rights cycle.
Disney Star acquired the ICC TV and digital rights for India from 2024 to 2027 for $3 billion and sub-licensed the TV rights for the men's and Under-19 global events to Zee while retaining the digital rights.
Interestingly, Disney Star's winning bid of $3 billion was more than double that of Sony Pictures Networks India (SPNI) and Viacom18.
The two firms are believed to have offered $1.3-1.4 billion for the ICC's TV and digital rights. Both Disney Star and Zee declined to comment on the matter.
If the ICC TV rights do not materialise, Disney Star, which signed the contract with the ICC, will have to service the entire $3 billion sports rights obligation over the next four years.
Analysts tracking the media sector say that Disney Star's
