Cash Flow Fumble: Zee Misses Deadline on $200M Cricket Fee to Disney

10 Jan 2024 , 11:11 AM

As the company attempts to save money in anticipation of the probable collapse of its massive merger with Sony Group Corp., Zee Entertainment Enterprises Ltd. has missed a deadline to pay $200 million to Walt Disney Co.’s India subsidiary for TV rights of cricket events, according to news reports.

News reports claimed that the Mumbai-based media company failed to pay a payment that was due in early January, citing financial difficulties. The information is not verified. Disney said that it has asked Zee to explain why the payment was missed and that the tranche was a portion of the more than $1.4 billion Zee had committed to pay for the license agreement, which was inked in August 2022.

Zee has additional challenges, including potential legal disputes, due to its failure to pay the Disney entity, on top of the aftermath of its disastrous merger with the Sony Group. According to one of the people aware who talked to ET, Zee has not provided bank guarantees for the amount that was supposed to be paid in accordance with the contract.

Zee, which stated on Tuesday that it was still working toward concluding the merger, was to get a notice of deal termination from Sony, according to a report published by Bloomberg News on Monday.

On Sunday, Nov. 19, 2023, spectators watch the India vs. Australia ICC Men’s Cricket World Cup 2023 final match on a digital gadget at a store in Old Delhi, India. According to an exchange filing from August 2022, Disney Star and Zee struck an agreement for the exclusive TV rights to International Cricket Council men’s matches in India through 2027. Disney’s streaming platform in the nation kept the digital rights to the content.

The over 1.4 billion cricket enthusiasts in India were the target market for the Indian entertainment company, which was counting on the TV rights to keep its audience and draw in new sponsors.

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